It’s no big secret collection agencies other wise know as debt collectors are insanely aggressive in their tactics to get you to pay them for any reason they come up with. Debt collection is BIG business and those companies will aggravate, manipulate and be down right nasty in their efforts to force you to part with often outrageous amounts of money for debts you may not realize you owe or never owed at all. As a specialist in correcting problem files, I have a lot of experience in dealing with collection agencies. Collection accounts are extremely damaging to anyone trying to correct, restore and re-build their credit files. One collection account alone can rob you of anywhere from 40 to 100 points! It can be down-right ugly how they continue to resurface from one company to another. Here are some very interesting ways they can get to you and force you to submit to their tactics.
1. A debt collector from a collection agency can impersonate someone who knows you. This kind of behavior is very deceiving and some companies will use old numbers, old addresses and “skip trace” your family and friends to locate you with the sole intent to harass you out of your money. Here is a sneaky tactic: A debt collector will call asking for you at your Mom’s phone number. They engage her like she knows you owe them and she needs to help you pay them.
2. A debt collector will get you on the phone and demand that you pay for a debt, when all the while you may not know it even exists. The conversation may start out like they know you and the debt collector may say..” Nancy, you are lower than life, you know you skipped out on this credit account with HSN, how dare you act like you don’t know what you owe!”. Here is a sneaky tactic: The debt collector will ask you “Don’t you remember when we spoke about this a few weeks ago?” “You told me you were going to take care of this!!” They never spoke with you and you don’t know them! It’s a demeaning way to make you think you know something about the debt and if you don’t they want to make you feel incompetent like you should know something. This is called harassment.
3. Letters may arrive in the mail from a so-called “attorney firm” who was hired to collect on an old cable bill. That is ridiculous and the letter will go on that you owe over $1000 for an old receiver that you have no idea where it is because you thought you dropped it off at the cable company. This is troubling for many people because the receiver has tripled in value and they never knew they were financing the cost beyond the introductory period when the account was set-up. Here is a sneaky tactic: So now you are being contacted by an “attorney firm” who has hired a skip tracer (someone who works from home and spends all day tracking you from old addresses, places you have worked, and old phone numbers) to get you to pay for an old cable receiver that is a debt worth of $1,500.00!!
4. Collection agencies can locate, verify and execute a wage garnishment in your name to your employer. This happens to alot to people and it is extremely sneaky and can cost you a fortune. By the time this happens, they have notified you and it can get you in a tricky situation because you may not believe it can happen, but it can. A wage garnishment is the ultimate weapon for debt collectors to get paid and destroy you financially. Here is a sneaky tactic, they call and verify your wage information and send it directly to your HR department of your employer. This is not good, because no one wants their employer knowing they are in some kind financial trouble.
5. Court action is the next level for a collection agency to take when they just want to plain execute a judgement to collect from you. This can be in addition to a wage garnishment or a separate process they seek altogether. A debt balance in the thousands is often a major problem for collection companies to collect on and aside from attacking your future tax refund, which they may pursue, the court legal action is the final method of choice. Collection agencies will seek this path when they believe they have identified they can truly collect the money from you. It costs money and time to take this level of action. Here is a sneaky tactic: Let’s say, a old debt was generated in another state by the original creditor in your name for something legitimate you actually acquired, the company will partner with a attorney firm close to your address and the county you live in, and send that firm’s representative to file in the Court system close to you. This is how they take you to Court to force you to pay. This can be overwhelming and ideally you never want things to go this far if you can help it.