Truths about Debt Collectors

Debt collectors get commission if they collect money from debtors. The debt collectors’ job is very difficult and they become frustrated and adopt unethical methods.

Sometimes, by mistake calls are received by people who never owed a debt. At times, people are routinely harassed and illegal methods are adopted to collect debts. Without proper verification and authorization, withdrawals are made from accounts of people who are not debtors. Commonly, computer generated calls are used by debt collectors. But, these are sometimes directed by mistake towards people who are not debtors. Calling a debtor is inevitable as someone has to call the debtor for money. The economy is down. Sometimes, debt collectors call people to know whereabouts of a debtor who might be once your neighbor or about whom you know nothing.

In 2007, the bad debt was $ 152.5 billion and debt collectors recovered about $ 40 billion. The problems are due to unlicensed debt collectors. Most of the debt collectors follow rules.

The debt collectors in accordance with the Fair Debt Collection Practices Act should NOT:

• Make false statements or use false names.

• Intimidate consumers.

• Use obscene words.

• Call customers between 9PM and 8AM.

• Contact customers at work places.

• Contact customers without showing their identity.

• Tell others and publish the names of debtors.

• Wrongly claim that a customer has done a crime.

• Be inaccurate in the debtor’s amount of loan.

People who think that a debt collector has trespassed the law can make a complaint with the State Attorney General’s Office.