Collection Agencies: What They are, What They Do, and How to Get Rid of Them

Tired of Debt Collection Agency Calls?

Many small to mid-sized businesses use collection agencies to collect their unpaid debt. These third-party agencies are much cheaper and more convenient for the companies to use than it would be for them to try to collect their money owed on their own. These agencies are professionals, and are more efficient and successful in collecting the monies. Their services do not come without a price; they usually charge between twenty and 35 percent of the money that they get back. When companies have debt that they never hope to recover, if they get only a percentage of that money back it’s better than getting nothing at all. Debt that they never would’ve tried to collect now has a chance of being returned.

Collection Agency Tactics

These debt collection agencies often use tactics that have helped them get really bad reputations among consumers. Often they call people at odd hours relentlessly, or come to their residence. Because of these practices, the Fair Debt Collection Practices Act was passed by our government. This act states that debt collectors are not allowed to call you before 8 in the morning or 9 at night, call you at work, deceive you into paying a debt, harass you, misrepresent themselves, falsely state that you are in trouble with the law, and more. They must also stop pursuing you if you write a letter telling them to do so.

Talking to Debt Collection Agencies

If you decide to talk to the collection agency, remember that you have the right to be treated fairly. You should also be sure not to talk about any details other than the debt they are trying to collect. They also have the ability to negotiate. Do not believe them if they say that they will only accept the total amount owed. They get a percentage, so any amount is better than none. Finally, if you do end up making a deal, never start any sort of payments until you get an official letter from the collection agency stating the terms of the deal.

Just because the Fair Debt Collection Practices Act exists, it doesn’t mean that the various debt collectors always follow the rules. If you are being pursued by them right now, you probably already know this. There is nothing worse than getting that 7:30 AM call on Sunday morning, and answering it because you think it might be an emergency, but it turns out to be an aggressive bill collector. So much for sleeping in on a lazy Sunday now that you’ve been rudely awakened.

How to Get Rid of Collection Agencies

Getting harassed by collection agencies is not fun, and if you owe on a number of outstanding debts, the phone calls and letters can almost take over your life. Using a debt relief method such as debt consolidation can help you get out of financial trouble, but there is another benefit as well. Part of their job is getting all of the collection agencies that are after you to stop the harassing calls and letters. Not only will they handle all negotiations involved with lower your debt by up to 50% or more, but they will get the bill collectors off your back for good.