Hi,
In my last blog, I referred to a few questionable techniques employed by a small percentage of bill collectors. Some additional ones to be aware of are:
1) Bill collectors will often use the term "garnishee wages" as leverage to get a debtor to pay on an account. They often speak as though garnishment of wages will happen overnight. In reality, wages are only subject to garnishment after judgment has been rendered which takes 45-60 days minimum in most states.
2) Another form of leverage used by bill collectors is to mention highly inflated attorney fees that the debtor will be responsible for if a small balance isn't paid in full. For example, a debtor owes a bill of $400.00. The collector calls the debtor and tells him or her that the client is prepared to sue and the attorney fees will be $1,400.00-$1,500.00 to coerce the debtor into paying the bill. In reality, chances are the client will not sue for such a small balance. In addition, the attorney fees would not be as excessive as the collector claims, IE., four times the amount of the bill!
3) Another common form of leverage used is when a collector tells a debtor that a lien will quickly be placed on his or her house. Once again, in most instances, and for most debts, the only way a lien can only be placed on a house is after judgment is rendered and the judgment is registered in the county in which the property is located.
These are just a few more examples of inappropriate collection techniques that are highly illegal, and, if encountered repeatedly, should be documented and reported to the State Attorney General.
Until later,
Alan
Showing posts with label questionable bill collector techniques. Show all posts
Showing posts with label questionable bill collector techniques. Show all posts
Monday, June 25, 2007
Tuesday, June 5, 2007
Questionable Bill Collection Techniques
Hi,
The majority of bill collectors that contact consumers and/or businesses are honest, hardworking reasonable people who want to resolve debts in a fair and equitable manner. Unfortunately, there is a small percentage of collectors that use questionable tactics to coerce people into paying their bills. Some of these tactics are as follows:
1) They throw the word "judgment" around, as though it is an action that is going to happen within a few days or weeks. In reality, from the time a bill collector calls, to the time approval is given by a client to proceed with a lawsuit, and the lawsuit is served on the debtor leading to a judgment rendered, on the average 45-60 days have elapsed. In most instances, when the collector indicates that judgment will be quickly rendered, the agency probably has no legal department at all, and likely does not have the ability to sue the debtor.
2) The statute of limitations on judgments varies from state to state ranging from as little as six years to as high as twenty one years. If a collector calls about an account on which judgment has already been rendered, make sure to get the date of the judgment and check to see if the statute of limitations in your state has expired. This information is available on the Internet.
3) If a collector calls, a reasonable offer to settle the debt in full is made by the debtor, and the offer is rejected due to a payment date that does not meet the collector's criteria, but rather the collector indicates that the file will be turned over to attorneys to proceed with a lawsuit prior to that date, simply contact the original creditor directly and tell the creditor your repayment proposal. It is not unusual for a creditor to become the mediator in a collection agency/client relationship.
If you get a call from a collection agency, the matter is serious and needs to be immediately addressed. If you feel as if the collection agency is not treating you fairly, contact the office of your State Attorney General for an appropriate referral.
Until the next time,
Alan
The majority of bill collectors that contact consumers and/or businesses are honest, hardworking reasonable people who want to resolve debts in a fair and equitable manner. Unfortunately, there is a small percentage of collectors that use questionable tactics to coerce people into paying their bills. Some of these tactics are as follows:
1) They throw the word "judgment" around, as though it is an action that is going to happen within a few days or weeks. In reality, from the time a bill collector calls, to the time approval is given by a client to proceed with a lawsuit, and the lawsuit is served on the debtor leading to a judgment rendered, on the average 45-60 days have elapsed. In most instances, when the collector indicates that judgment will be quickly rendered, the agency probably has no legal department at all, and likely does not have the ability to sue the debtor.
2) The statute of limitations on judgments varies from state to state ranging from as little as six years to as high as twenty one years. If a collector calls about an account on which judgment has already been rendered, make sure to get the date of the judgment and check to see if the statute of limitations in your state has expired. This information is available on the Internet.
3) If a collector calls, a reasonable offer to settle the debt in full is made by the debtor, and the offer is rejected due to a payment date that does not meet the collector's criteria, but rather the collector indicates that the file will be turned over to attorneys to proceed with a lawsuit prior to that date, simply contact the original creditor directly and tell the creditor your repayment proposal. It is not unusual for a creditor to become the mediator in a collection agency/client relationship.
If you get a call from a collection agency, the matter is serious and needs to be immediately addressed. If you feel as if the collection agency is not treating you fairly, contact the office of your State Attorney General for an appropriate referral.
Until the next time,
Alan
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