MyArticleWizard.com

When speaking with a debtor, many collectors (especially those without much experience) will use a script, which contains a pre-written introduction, request for payment, and has various branches to follow, depending on how the debtor responds. If one debtor in particular is taking up too much time without making arrangements to repay the debt, the collections agent may be inclined to move on to other accounts. Any information that the debtor gives about his/her financial situation (e.g. income or current employment, etc.) will be recorded on the file’s record and used to estimate the probability of a recovery, the advantage of legal action, and so forth.

So what can a debt collections company do? If they are working the debt for one hundred percent commission, they will send some more demand letters and make more telephone calls. Also, they can mark the item as negative with the credit bureaus. If they are working on contingency, they can recommend filing suit, or if they own the account, they can file suit. However, the actual chances or intentions of this are often significantly less than they try to suggest to the debtor.

Legally, collection agencies can’t seize a person’s bank accounts, assets or garnish wages unless there has already been a successful lawsuit with a judgment awarded in their favor. Collection companies can not legally make any kind of public announcements or disclosures concerning the debt, except to the credit bureaus.

Collection companies can not legally get a debtor fired from his/her job. Collection companies can not legally engage in any type of physical violence or threats thereof.

Why does the debtor pay? Many times the reasons include fear, guilt, intimidation, and a lack of understanding of the legal remedies available. Also, it is the right thing to do. The person in debt might feel ashamed and guilty of being a “deadbeat,” and might see a judgment of his/her value as a person. The debtor may have greatly exaggerated ideas about what collectors are (legally) capable of doing, and might have outdated stereotypes in mind.

The debtor may be overwhelmed by the aggressive and relentless demands, from companies that may seem so powerful. She or he may take it personally, and come to the conclusion that great individual attention is being given to this particular collection file. Customers being contacted by collection agencies are typically in serious financial distress, and under emotional pressure about the general situation, so they might be confused and defenseless.

Mallory McGuinness is employed by a collections agency that works with a debt collection lawyer. She also composes stories on business, finance, consumer spending and collections agencies. Click here to get your own unique version of this article with free reprint rights.