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ARRG! they called again!-Dealing with Collection Agencies
Collection Agencies are a necessary service in the realm of finance. When bills go unpaid companies can't afford to get bogged down in following up on unpaid accounts. This is where the "Bill Collectors" come in. Sometimes companies will sell their unpaid accounts to the Collection Agency for an amount less than the amount owing. This way the company gets paid a portion of the bill. Now the collection agency is 100% responsible to collect the debt. If they want to make any money on the debt they bought the have to collect as much as possible as fast as possible. In other cases collection is contracted out to collections agencies and they are paid a commission on the amounts collected. To say that collection agents are "highly motivated" is an understatement.Individual collectors are paid a commission on the dollar value they collect. Every aspect of the collections agency behavior is devoted to getting the money.
This can result in some very aggressive behavior as the agents work the phones to get the money, it is a tough job, and it takes a special personality to do it with compassion.
If you are on the receiving end of the collection agent's efforts it can be difficult to realize that the person you are talking to is just trying to pay their own bills, and for them to do that you have to pay yours.
Regardless, there are rules for what can and can't be done by collections agents to collect bills. Those rules were tightened on June 1 2006. If you are having trouble paying your bills and they have been placed with a collection agency you should know those rules so that you can be certain that who you are dealing with is sticking to them. Some of the most important elements of the new rules are guidelines for how often collectors can contact you. They can't contact you more than 3 times in any 7 day period. There are very clear rules about collectors calling your work or other members of your family. They can only call once to confirm your employment, they can only call your family to ask for your address or phone number. They can't give false or misleading information to anyone nor can they use threatening, profane, intimidating or coercive language, neither can they use undue, excessive or unreasonable pressure. As the one receiving the call you are the judge of whether a collections agent is doing any of the things they are not supposed to.
The thing about Collection Agencies is they won't stop or go away, and they will escalate their efforts if you don't respond, including going to court to get an order to take some of your wages. If you have to deal with collectors, be upfront with them, tell them what you can and can't do, don’t be bullied into agreeing to do anything you are not certain you can handle. Keep the interactions professional, but keep the lines of communication open. Most collectors are willing to work with you if you show you are willing to work with them.
If it is all too much and you know you can't solve the problems yourself, call 310-PLAN to talk to a trustee. You have options and you owe it to yourself to make sure you know all your options.
posted by Brian McIlmoyle @ 6:08 PM
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