Dealing with debt collectors may be extremely stressful, especially when you have no idea how to deal with them yourself. Lawyer fees to deal with debt collectors will add up quickly and pile on even more debt for you to pay.
Feeling trapped and hopeless can sometimes be a part of it but there are ways out. There is even a government-funded agency to assist you in any debt collector-related scenario.
They can offer immediate relief when a debt collector gets too aggressive or if you are certain the debt is not even yours in the first place. Tell them your situation and they will seek action right away.
You are not the only one dealing with debt collectors. Do not let them control your life and make you feel scared. This is why it is important to know your rights, as well as their tactics, and how to legally defend yourself against them.
Let us first look at what a debt collector actually does and how to become one.
Becoming a Debt Collector
A debt collector is responsible for tracking down and collecting debts that are owed to creditors or businesses. They contact debtors to inform them of their outstanding payments and to negotiate payment arrangements.
Debt collectors use a variety of communication methods, such as phone calls, letters, and emails, to reach out to debtors and resolve unpaid debts. They provide their employers or clients with status updates on outstanding debts on a regular basis.
What It Takes
In order to become a debt collector legally, you must meet certain criteria and qualifications. Once you meet these requirements, you can start looking for jobs as a debt collector.
- Basic Requirements. Having a high school diploma or GED and some experience in customer service or collections is required by most employers.
- Get Certified. There are a number of certifications available for debt collectors, such as the Certified Debt Collector (CDC) and the Certified Credit & Financial Education Counselor (CCFEC). These certifications show employers that you have the skills and knowledge necessary to be a successful debt collector.
- Get Licensed. In order to collect debts in most states, you must be licensed by the state. The requirements for obtaining a license vary from state to state, so be sure to check with your state’s regulatory agency for more details.
- Gain Experience. The best way to become a debt collector is to get experience in the field. Do this by working for a debt collection agency or by volunteering for a nonprofit organization that provides debt counseling services.
- Network. Get to know people in the debt collection industry. Attending industry events, joining professional organizations, and connecting with people on networking sites will allow for job opportunities as well as making connections that lead to employment.
There are a number of different types of debt collection agencies and positions within, so you will need to decide what type of agency you want to work for, like a government agency or a nonprofit organization.
The job of a debt collector can be challenging, but it can also be rewarding. If you are good at communicating with people and you are persistent, you can be successful in this field.
Talk to professionals to gain a first-person perspective of what they do on a daily basis.
Additional Tips:
- Organized and Efficient. You will need to keep track of multiple cases at once and handle a lot of paperwork, so plan accordingly.
- Be Assertive. Getting your point across without being aggressive will take careful communication and a calm approach, in order to be respectful of the debtor’s rights.
- Know The Laws. Familiarize yourself with the Fair Debt Collection Practices Act (FDCPA) and other laws that govern debt collection. Make sure you know these laws exceptionally well.
- Be Patient. It may take time to collect on a debt, so avoid getting discouraged if you do not see results immediately. Patience will eventually pay off.
If you are looking for a challenging and rewarding career, becoming a debt collector may be a good option for you. With the right skills and experience, you can be successful in this field.
Debt Collector Tactics
Debt collectors are allowed to use a variety of legal tactics to collect debts, but they are prohibited from using certain unfair, deceptive, or abusive practices. These practices are prohibited by the Fair Debt Collection Practices Act (FDCPA), which protects consumers from abusive debt collection practices.
Occasionally debt collectors resort to rather extreme tactics in order to collect because of the incentive. There are people who deliberately do not pay bills while some are struggling hard. It could also mean a sudden job loss, death, depression, or anything else that leads to somebody not paying their bills. Debt collectors need to be cautious because they never know the debtor’s current situation in life.
Common debt collector tactics should be studied if you are receiving calls or letters. There are both legal and illegal ways that a debt collector may try using. Make sure you know the differences.
Legal Tactics
Knowing what a debt collector is legally allowed to do will put you in the right place to respond. These methods seem straightforward although many people may not know them. Expect these tactics to be used on you.
- Contact Methods. Debt collectors are allowed to contact you to collect a debt via phone, mail, or email, but they are prohibited from harassing or abusing you. They are also required to identify themselves as debt collectors and to provide information about the debt, such as the amount owed and the name of the creditor.
- Validation Letter. A debt validation letter is required within 5 days of their first contact with you. It must include the debt amount owed, the name of the creditor, and the date the debt was first incurred. You have the right to dispute the debt if you believe it is not valid.
- Collecting The Debt. Debt collectors are allowed to collect the debt from you or your spouse however, they cannot collect the debt from your child or any other dependent.
- Garnish Your Wages or Bank Account. Although there are limits, a debt collector can garnish your wages or bank account if they obtain a court order. Try to work out a payment arrangement before it gets this far.
- File A Lawsuit Against You. Debt collectors can file a lawsuit against you if you do not pay the debt. If they win the lawsuit, they can obtain a judgment against you. This judgment can be used to garnish your wages or bank account.
Illegal Tactics
Plenty of debt collectors use rather unethical or illegal methods in an attempt to collect even the smallest of debts. These tactics can cause you stress, anxiety, and fear which will make it difficult for you to focus on your work or your personal life. Do your best to not let them get to you mentally.
Debt collectors are people trying to make money just like you. We need these people regardless of the negative image that they are known for. Be wary though of any attempt at collection and do not just pay without looking into the debt.
People do not know the laws and some collectors take advantage of that. Some illegal tactics a debt collector may consider are:
- Harassing/Threatening. This includes calling you at all hours of the day or night, calling you at work if you have asked them not to, or threatening to take legal action against you if you do not pay the debt. Using obscene language or threatening violence is also illegal under the FDCPA.
- Lying About the Debt. Claiming that you owe more money than you do or that the debt is not dischargeable in bankruptcy is common.
- Recontacting. Contacting you after you have told them to stop contacting you is illegal and also quite common.
If you believe that a debt collector has violated the FDCPA, you can file a complaint with the Consumer Financial Protection Bureau (CFPB). You can also sue the debt collector in federal court.
Know Your Rights
The most important aspect when dealing with debt collectors is knowing your rights. This will go a long way when handling debt collectors for the first time. There are plenty of times when multiple companies will try to collect on the same debt.
Make sure you keep records of any debt paid, when, how, etc. Stay organized in all paperwork you may receive from any collection agency. A paper trail can build a great case against any company that may be illegally trying to collect.
Regardless, you should consider contacting a professional to handle this for you. Debt collectors prefer to deal with people directly because they tend to be ignorant of the laws. This is why you should get ahold of the Consumer Financial Protection Bureau.
Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau, or CFPB, is a U.S. government agency dedicated to making sure you are treated fairly by banks, lenders, and other financial institutions. They help by responding to complaints received by consumers about various financial institutions, especially debt collectors. Take advantage of this and what it offers.
Here are some additional things you can do to protect yourself from debt collectors:
- Keep a record of all communications with the debt collector.
- Do not give the debt collector any personal information other than your name and address.
- Do not agree to make any payments until you have verified the debt.
- Ask the debt collector for a payment plan if you cannot afford to pay the debt.
- Contact a consumer credit counseling agency if you are having trouble dealing with a debt collector.
If you are dealing with debt collectors then contact the CFPB immediately. Hesitation to contact them will only put you further behind.
View more information on their website with the link below.
Resources:
- Career Explorer
- Consumer Financial Protection Bureau
- Featured Image Courtesy of Free Stock photos by Vecteezy