Collection agencies are known for calling and harassing people in debt. They use fear, manipulation, bullying and repeated calling to wear you down. It gets to the point that some people fear answering the phone in their own home. In order to stand strong against the big, bad debt collector, educate yourself on a few tips they don't want you to know.
Collectors Earn Commission
Debt collectors earn commission from the down payment you send the company, which is why they make it seem as if you have to send them a sizable sum before being permitted to make regularly scheduled payments. Because they're hoping to increase the size of their paycheck, they tell you the down payment is being requested by their "manager" who won't accept anything less. Don't fall for it. Pay what you can, and do not let them bully you into paying a penny more.
They Don't Need Your Personal Information
Debt collectors often ask for your financial records and other personal information, such as social security number, the address of your employer, bank account number and references, claiming they need the info to verify your income and justify your timely payment amount. Don't give it to them. According to Tenant.net, that information will be used to track you down in case you miss or cease payments.
They're All Bark and No Bite
Debt collectors will threaten you in all sorts of ways to get your money. Their number one threat is "we'll ruin your credit report." Don't worry about that. Chances are, if you're already being harassed by creditors, your credit report isn't that great anyway. They also threaten to seize your personal property, but it rarely happens. In some states, it's even illegal. Collection agencies can garnish your wages, but they can't touch your pension, social security or more than 25 percent of your paycheck. If taking 25 percent of your wages would cause your family extreme hardship, you can request to be exempt from garnishment.
You Can Fix Your Credit Report
Bad credit reports can be the result of creditor mistakes. You can ask (in writing) that all the companies on your credit report verify the fact that you really owe this debt. If they don't respond in a timely fashion, their information must be removed.
You Can Make Them Stop Calling
Collections agencies don't want you to know that you can stop their harassing phone calls. If you send your request in writing, they have to stop calling you. If they don't desist, you are within your rights to file a lawsuit.
Your Debt Can't Follow You
If you move out of state, debt collectors may still call you. However, if they've won a judgment against you and you work and bank out of state, it's likely they won't attempt to collect. To do so, they would have to transfer the judgment to the state you live in, which is costly and takes a long time.
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