Debt Collection Horror Stories
Posted on 03. Sep, 2010 by Forest in Debt, General, Opinion, Saving Money & Finances
Under my debt management program it is possible that one of my debts will be sold onto a debt collection company by one of the creditors. I have been briefed on my basic rights here and now I know that I can just put the phone down on them I am not too worried. However from vague intimidation to absolutely illegal rule bending tactics debt collectors can be some of the meanest people on the planet. They are really just like a loan sharks hench men!
Debt collection horror stories: The Tactics
I have heard of some really mean things done by debt collectors and here are just a few.
Shame
I wish I could remember the blog I read this on but aparently one debt collection company had taken it on theirselves to contact everyone in the street to tell them that their neighbour was in debt. This is a terrible level of shame they were trying to push on the person and I would not be suprised if this was illegal.
Intimidation
It’s very common for debt collectors to call you up and call you names. Anything from criminal to scum to swearing has been known. They threatening to take money from your wages, take away your car, other necessary items and I even heard of a case where a collector threatened to take the kids toys. Of course it’s very unlikely they ever have the rights to take anything from you, it is all just intimidation tactics.
Annoyance
Another very common tactic is to annoy you to absolute hell. This can start with them calling just once a day, it can turn into several times a day and eventually lead into several times in a space of minutes, while you are at home, at work and everywhere in between. It causes many people to turn off all phones around them unless expecting a call.
Friendship
I have had the credit card companies call me trying to collect debt and pretending to be my friend, they understand what I am going through apparently! They don’t care, they just want the money and it’s never worth being more than civil as if they drag any if or promise from you they can try and push to use it against you.
Avoiding debt collection horror stories: Your rights.
Quite honestly a debt collector has very little rights over you. Most of the stuff they are doing is illegal but they rely on you not being able to prove it. The best thing for you to do is play by the rules and don’t push ahead paying any specific debt because of debt collectors harassment. Bank rate has an excellent summary of the basic federal rules for paying your bills here.
My advice for dealing with them is to tell them you are seeking advice and ask them to talk to you via letter and that you will only respond that way, be polite but don’t idle on the phone or give them any sense they are getting through to you. Stay calm and don’t let their games get to you. Also if possible make records of their actions and even record calls so that you have evidence of their bad deeds. I have absolutely no idea how they have been operating like this for so many years!
Your debt collection horror stories
My biggest story so far basically involves a company calling me and offering me a settlement for 1/3rd of my debt. They told me they had called after speaking to my debt management company and the debt management company should have contacted me advising me to pay up the settlement. I smelled something fishy so I called my debt management company and they had never been contacted! If I had paid this settlement my other creditors could have taken me to court for un-equal treatment of debts.
Now I would love to know your debt collection horror stories or how you have dealt with these slim bags?
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12 Responses to “Debt Collection Horror Stories”
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krantcents: I started teaching whe I was 55 years old. I am v...
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Jeremy: I think the media plays a big part in that. US me...
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Forest: Thanks for the comment Jeremy. I guess you are rig...
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Kevin@InvestItWisely
04. Sep, 2010
And then come the repo guys… glad that I never had to go through these things! Something worth thinking about before one considers going into excessive debt…
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Forest
05. Sep, 2010
Hey Kevin, yeah that is something I hope I never have to face…. Not sure how they get called in but I guess the court has to order it.
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Cathy Moran
04. Sep, 2010
Your comment about the possibility of suit by other creditors interested me. Under California law, you have the absolute right to pay one creditor at the expense of the other. Where is the law different?
Even if such law exists, a creditor who is going to sue you is much more likely to sue on its debt rather than on a theory of favoring one creditor over another.
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Forest
05. Sep, 2010
Hi Cathy, that is the case in the UK where my debt management plan is in place. I don’t know if it’s written law or accepted etiquette but I was told by my managers that I can’t take the move of paying off one debt. I am allowed however to settle with them all at the same time which is where I hope I am heading. To my knowledge that is the case with debt management plans in USA too but I could be wrong there. No matter what a creditor might or might not do it still pays to play by the rules to the book…. Then if you are called to court for any reason you can present full evidence that you have been trying.
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Khaleef @ KNS Financial
07. Sep, 2010
It’s crazy how many tricks they will pull. But I guess I can’t blame them TOO much – I mean, they are trying to collect money that is legally owed to them.
I known them to call someone’s house and lie about being a friend or distant relative, yell at and berate them, and even threaten them with FBI visits!
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Forest
08. Sep, 2010
I guess that is the hard thing….Often you do owe them the cash. But if a friend owed me cash and I went round there harassing them the police could be called on me…. I doubt the police could easily do anything to these collectors sadly!
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Mike - Saving Money Today
10. Sep, 2010
I’m reading a book about debt collectors right now to review on Yakezie.com. The author went undercover at a debt collection agency and discusses their blatantly illegal practices. The problem is they don’t care about the law. The tiny fines they pay are nothing compared to the amount of money their tactics bring in, so it’s just a cost of doing business to them. Absolute scum.
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Forest
12. Sep, 2010
Hey Mike, that sounds like an interesting read and looking forward to the review. They need much stronger regulation I think
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debt management uk
16. Sep, 2010
yes, i am agree with your views. debt sometimes create horrible situation.
Thanks for your views as it helps in horrible situation for debt.
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Forest
19. Sep, 2010
No problem.
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Richard Coleman
16. Jun, 2011
Years ago we had a Visa bill that had ballooned to around $1400 and began getting the usual series of dunning Phone calls. One day when I was at work my wife got several calls in a short period of item so she decided to just let it ring. The damn phone rang for 15 minutes without let up.
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Forest
16. Jun, 2011
Sounds like these darn hounds
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