Having to deal with debt collection can prove to be quite challenging. It’s hard to know what to expect. It’s even more challenging to know who’s genuine and who are scammers. However, fear not. Below you will find everything to do with debt collectors that you ought to know.
What to expect once your debt goes to a collection
Once you default on any debt payment, you are likely to get reported to a credit bureau. The report appears in your credit history. However, this takes place within 3 to 6 months upon defaulting. Here is what you must expect
1. Debts might get assigned or sold
A creditor can own debt but soon turn it over to a debt collector agency using a contract to collect. Thus, called assigned debt. There are times when the creditor can choose to sell the debt, therefore, referred to as purchased debt.
Any collection agency can’t sue you over assigned debt without the creditors’ authorization. There are times when the creditor insists that the agency collects all of the debt payments. The agency will not agree to anything less than that.
2. Agencies tend to move quickly
Once your debt is passed over to a collection agency, be sure to hear from them soon. They always strike early, thus high chances of collecting the debt.
These collection agencies are quite selective and go for delinquent accounts that have a high success rate. It’s because they get paid to deliver results. Collectors earn in the form of commissions that’s why they might be up your neck to clear a debt.
How to differentiate between a scammer and a legitimate debt collector
There are quite a lot of scams revolving around debt collection currently. However, you can maneuver this huddle by finding ways to differentiate a genuine debt collector from a scammer. Below are significant warning signs that you must check
Withholds vital information from you
Any debt collector must state the creditor’s name, the amount owed, among other minute details. You ought to have written notice and verification documents within the first week of initial contact. If this is a miss, it’s a red flag
Pressures you to pay the debt via money transfer or prepaid card
You need to be extra vigilant of collectors who use untraceable payment methods. Always strive to pay using traceable means of payment
Says they will inform your employer, family, and friends
Some scammers are quite crafty by threatening to reveal your debt situation. A genuine collector ought to value discretion.
Asks about sensitive financial details
A genuine debtor doesn’t inquire about social security numbers, bank account, or routing numbers. Some scammers use this information to commit identity theft. If you’re in debt and you need cash, check out how an auto title loan calculator can help you make ends meet this month.
Calls you at inconvenient times
You need to be vigilant of people who call outside business hours to collect a debt. A genuine debt collector hardly calls after 9 pm or before 8 am.
You must protect yourself when it comes to debt collectors. Don’t forget to contact your original creditor to inquire about a specific debt collector. In case you have a complaint, you must submit it to the federal trade commission to avoid falling for a scam.