Getting into debt can be a huge problem and a source of stress, especially when the debt involves a huge principal amount compounded with cutthroat interest rates. You may have a personal loan, mortgage loan, a car loan, or credit card bills you either choose to ignore or just don't have the money to pay.
Collecting debts is surely a difficult and tedious task to do, which is why majority of financial institutions seek the aid of collection agencies to do the task for them. Collection agencies are independent companies that have only one objective: to collect debts for their clients (such as banks and credit card companies).
Debt collectors are highly motivated to convince (or force?) debtors to pay the money they owe to their clients because they receive commissions whenever they get debtors to pay. These collectors will do almost anything to accomplish their task – including bad behavior such as threats, intimidation, harassment, and the use of bad language.
There are certain things that debt collectors are allowed to do when asking debtors to pay. Certainly, bad behavior like the ones mentioned are not allowed. Collection agencies implement certain rules on collecting debts, but sadly, not all agents are monitored, or they simply get away with their bad behavior.
Reasons Why Debt Collectors Pester You
If a debt collector keeps on bothering you, there are only three possible reasons why they do so. The financial institution did not receive payment within the agreed due date, you are a victim of identity theft, or the collection agency called you wrongfully, thinking you were another person who has debt.
Whenever you apply for a loan, there is a contract that has to be signed. Indicated therein are the terms of the loan - the amount, the interest rate, the date when the payment is due, and other information. After the date when the loan was supposed to be paid, if the company has not received any payment they task debt collectors to contact you to settle the debt. In this case, you may either have paid the company already but there was no payment received, or you completely forgot or ignored to pay.
If you do not have any debts, then it is also possible that you are a victim of identity theft. Identity theft occurs when someone with malicious intent pretends to be you, using your identity to use your credit or get loans. Identity theft has become very common today due to the relative ease of obtaining personal information on the Internet.
Now if you are sure you don't have any debts and you are not a victim of identity theft, then surely the debt collector bugging you is knocking on the wrong door. Even if you try to explain that you are not the person he or she is looking for, they may just think that you are just trying to evade them. Imagine getting a nice commission when a debtor pays up? Who wouldn't be less than persistent?
Annoyed? What do you have to do?
Before you start flaring up, talk to the debt collector in a nice and calm manner. Try to get as much information as possible and determine if the debt is indeed yours. Never fight back with your temper when talking to them because they might assume that the debt is indeed yours. Aside from the stress you get from flaring up, the debt may not be really yours. Make sure you ask for specifics, like the name of their client (the bank or credit card company) and the details of the loan such as how much it is and the date the loan was approved.
If the debt isn't yours: After obtaining the information that you need you realize that the debt is not really yours, of course you don't have to pay it off just to get rid of that annoying debt collector. It is just a waste of your hard-earned money. You should not ignore the calls, though. They won't stop calling you and soon, they might even file a lawsuit against you. Instead, write the collection agency to stop calling you and say that their calls constitute harassment. Tell them in writing that if they don't stop calling, you will file a harassment case against them.
If the debt is yours: If you do confirm that the debt they are collecting is yours and you are not comfortable with discussing such matters over the phone, you can either arrange an appointment or take up correspondence through mail. Try to tell your debt collector about your intent. If they still pester you with calls, send them a written request. If you find conversations over the phone convenient, then instruct the collector to call you up during your most convenient time, such as after work around 6-8 in the evening. Laws say that these collection agencies must respect your privacy, so they should not be calling when you are at work, resting at home, or even when you are sleeping.
As previously stated, debt collectors have rules or policies in collecting debts. Other details vary, but generally, a debt collector should respect your privacy, should not use vulgar words, use intimidation, make threats, or employ deceptive methods just to force you to pay off the debt. If the collector persists in doing so, that may serve as grounds in filing a harassment case against them.
Paying the Debt Off
Once you have said that you are paying your debt, again, get as much information as you can with regard to the terms or options you have for payment. Remember that the amount they say you have to pay, inclusive of interest rates, penalties, and other charges, is negotiable. You do not have to settle with the amount they say you have to pay since there is a possibility that you can pay a lower amount or at least a reasonable one.
If things get out of hand, such as if you feel you are being charged too much, or you just can't understand the jargon they speak, never hesitate to seek legal help. A lawyer can help you negotiate or determine if the amount you have to pay is fair, reasonable, and of course, legal.