If you have any bills that you have not paid for a few months, chances are you will be getting a call from a debt collector soon. You are now considered a bad debt, usually after attempts by the company to contact you have been ignored and you have not tried to contact them or make some sort of payment against the debt.
Debt collection agencies are hired by a company to collect the money owed to them. Debt collectors are more aggressive in their efforts, as they know that you have in all ikelihood been avoiding any contact with the company, and are likely to ignore their efforts as well. You are not their customer, just a debtor, a label you should try to avoid if at all possible, as it is not an honorable one.
Credit reporting agencies often receive their information from debt collection agencies. These agencies keep track of your credit record. Your credit record is used to indicate how good you are at paying your bills, and is referred to by mortgage companies, car dealers and other finance companies to determine your credit-worthiness.
Generally, there is no escaping debt collectors, who use a number of methods to find you - even if you move house. As annoying as it may be, debt collectors will use any means to find you, no matter how humiliating it may be for you, even calling your employer or canvassing the neighborhood to find you and do what they have been hired to do. They will do everything they can to find you and collect the debt, as that not only provides their customer with better service - it is often te only way they can get paid for the job they have done.
The debt collection industry is regulated by Federal rules and guidelines to ensure that your rights are not violated too, despite some disreputable companies' methods. If there is some confusion about the debt, either the amount or whether it actually is your debt, you should contact the company immediately. The debt collectors may be able to assist with sorting this type of situation out with you. But however you choose to do it, make sure that you keep copies of all of your paperwork and any communication regarding the issue. You should also track the calls and letters that the agency sends to you.
If the agency is using threatening tactics against you, even if you do owe the money, you should immediately report them to the Better Business Bureau. This is a violation of the Fair Debt Collection Practices Act, the federal law that guides the practices of the debt collection industry.
Debt collection agencies are hired by a company to collect the money owed to them. Debt collectors are more aggressive in their efforts, as they know that you have in all ikelihood been avoiding any contact with the company, and are likely to ignore their efforts as well. You are not their customer, just a debtor, a label you should try to avoid if at all possible, as it is not an honorable one.
Credit reporting agencies often receive their information from debt collection agencies. These agencies keep track of your credit record. Your credit record is used to indicate how good you are at paying your bills, and is referred to by mortgage companies, car dealers and other finance companies to determine your credit-worthiness.
Generally, there is no escaping debt collectors, who use a number of methods to find you - even if you move house. As annoying as it may be, debt collectors will use any means to find you, no matter how humiliating it may be for you, even calling your employer or canvassing the neighborhood to find you and do what they have been hired to do. They will do everything they can to find you and collect the debt, as that not only provides their customer with better service - it is often te only way they can get paid for the job they have done.
The debt collection industry is regulated by Federal rules and guidelines to ensure that your rights are not violated too, despite some disreputable companies' methods. If there is some confusion about the debt, either the amount or whether it actually is your debt, you should contact the company immediately. The debt collectors may be able to assist with sorting this type of situation out with you. But however you choose to do it, make sure that you keep copies of all of your paperwork and any communication regarding the issue. You should also track the calls and letters that the agency sends to you.
If the agency is using threatening tactics against you, even if you do owe the money, you should immediately report them to the Better Business Bureau. This is a violation of the Fair Debt Collection Practices Act, the federal law that guides the practices of the debt collection industry.
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