Legal And Illegal Tactics A Debt Collector Will Use To Collect: Debt Collection Basics Part Three

In the first two articles I wrote about what a collections account was, how sending delinquent accounts out to an agency profits a creditor, and the act of a third party collection agency buying old debt from a creditor.

I wrote about what type of information a collection agency will collect and use in their efforts, and also that third party collection agencies are governed by federal and state laws and are overseen by the FTC.

A minority of collection companies will utilize deceptive, strong arm and illegal methods to confuse and scare debtors that include pretending that they are one of their creditors and asking them to verify information, pretending to be an old friend or neighbor to catch a debtor off guard, repetitively calling or mailing a debtor to the point where it gets to be a nuisance, or sending threatening letters or leaving threatening voicemail messages.

Legal but manipulative practices include pressing the debtor, preying on their emotions, and using vague threats like “respond within ten days or further collections attempts will follow.” Other illegal practices include making an idle threat of litigation or pursuing litigation when the debt collector has no intention to, threatening to throw a debtor in jail, threatening to garnish wages or seize bank accounts when they have no authority to, lying about the amount that is owed, or asking for more than what is owed are used as well.

For the collections industry, time is the enemy and a good bill collector is completely aware of this bit of information. Their main task is specifically to get money as soon as possible.If you are talking to a debt collector, keep in mind that at any time you have the legal right to tell them you are busy and will call them back if you are flustered, hang up, cool off, develop a game plan, and contact them later. An aggressive debt collector will ask you why you can’t make payment arrangements today.

Rapid Recovery Solution is a commercial collection agency that writes articles on commercial collection companies. This article, Legal And Illegal Tactics A Debt Collector Will Use To Collect: Debt Collection Basics Part Three has free reprint rights.

When You Owe Too Much Money And Just Can’t Pay

Debt can be an exhausting problem that weighs you down and affects your personal life greatly. But what if you have exhausted all of your resources and still can’t free up enough money to start repaying your debts in a big way? You still have choices. Perhaps it is time to think about the big things in your life- private schools, your house, and your cars. Are these things truly a necessity? Another option you have is to go through your house and your things and see if there is anything of value to sell. You can go after more money at your current job, or by taking on a second one. And there are still other alternatives yet. Credit counseling and bankruptcy are always available, but you are not there yet, so for now, take a deep breath and determine what you can accomplish on your own.

If you are a parent with children attending private school, consider moving them from private to public. For parents, the thought of moving their children from one school to another can be overwhelming. If this is not something that you as a parent are willing to do, you can always see about applying for financial assistance from your current school.

It is also a possibility that your living environment is sabotaging your capacity to make ends meet. Just last decade, we were fearful that if we didn’t buy at the very moment that we would be priced out of the only neighborhood we desired to live in. It’s a hard decision, but it very well may be that selling your home is a solution that you have to consider. While it is a conventional pearl of wisdom that your house is the asset you’ll retire on, and the most valuable asset in your portfolio, unless you can afford to make the payments, it’s also going to be the one that can be your downfall. Trading down – switching a larger house for something more manageable and less expensive can be an option, but you also may need to consider renting for a while. Bear in mind that if you can keep the cost of moving low, renting will save you the cost of homeowner’s insurance. (Renter’s insurance is much cheaper.) Other things you will save on include yard care, and commuting costs if you can find the right location to rent from.

If you can wrap your head around it, there is probably another, less expensive way for you to get back and forth to work each day. Think about it. Could you get by without a car for a while? Not only would it save you the expenses of paying for the car itself, and it’s upkeep (oil changes, repairs etc) but think about all of the money that goes to parking, insurance and gasoline. And if you feel as though you cannot go without a car, what about trading in your expensive car for one that runs just fine but is used?

Many times, simply thinking outside of the box is all that it takes to get yourself out of a situation that you find is difficult. If you take a calm approach to your situation with an open mind, you may find that the solution comes easier to you than you ever thought possible.

Mallory Megan works for Rapid Recovery Solution and writes articles about nationwide collection agencies Grab a totally unique version of this article from the Uber Article Directory

How Do I Collect My Money?

The small claims court cannot collect your money for you, but the clerk or small claims adviser can tell you about some ways to do this yourself. Some just hire a debt collection agency.

For example, you may be able to have the defendant’s wages “garnished.” This means that the person’s employer gives you part of the defendant’s wages each pay day until the debt is paid. To collect your money this way, you must find out where the person works-, be sure to get the name of the company and its full address, including the county. Then, ask the small claims court clerk for a Writ of Execution and fill it out. When the court issues this writ, the sheriff or marshal will deliver it to the debtor’s employer.

If you know where the defendant banks, the small claims clerk can issue a Writ of Execution that the sheriff or marshal takes to the bank. You need to know the name of the bank, the full branch address and the county. The bank will pay you what is owed, if there is enough money in the account.

A Writ of Execution also can be used to “attach” or take certain kinds of personal property, such as stocks, bonds and the contents of a safe deposit box. After this property is collected, it can be sold in order to pay the money that you are owed.

Not all personal property can be taken. The defendant can file a Claim of Exemption to protect the ” necessities of life,” possibly including a house, car, clothes and some wages.

The cost of a Writ of Execution – as well as the amount that the sheriff or marshal charges to deliver the writ – can be added to the amount that the defendant owes you. You also are entitled to interest during the time it takes to collect.

If you do not have the information you need to collect your money, you can make the defendant come to court and answer your questions about wages, the employer’s location, bank account, personal property and real estate. Contact the small claims adviser for information about how to schedule this hearing.

Remember: The judgment is good for 10 years, and you can renew it if you still have not collected the amount you are owed. But, in many cases, the longer you wait, the harder it is to collect the money.

Rapid Recovery Solution is a New York debt collection agency. Grab a totally unique version of this article from the Uber Article Directory