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Collection Agencies: What They Can and Can't Do

Aug 17, 2007
Collection agencies are third party companies that creditors hire to recover debt payments of their debtors. Whether this proves effective to their cause of recovery debts owed to them or not, consumers must remember these few things that professional collection agencies can do in performing their job. Consumers must not give in to the professional collection agencies strategies and carefully weigh their options when paying off their debt.

What collection can do depends on the reactions they get from the consumers after they sent out their first demand letter. The demand letter is the first thing that pro collection agencies can do. This letter contains information about the unpaid debt with statement encouraging the consumer to call the collection agency to discuss further settlement of the debt.

The next thing that professional collection agencies would do is to call up the consumer and explain demand for repayment. If they failed to contact the consumer or the consumer refuses to cooperate, the pro collection agency will report the case to the country's debt bureau. They can also recommend to their clients to file a lawsuit against the consumer should the letter and phone calls fail to settle the issue.

In case the debt issue gets further out of hand, consumers should now that the collection agencies can not seize any of the debtors' assets, bank accounts or any other tangible properties. Even if there is already a pending lawsuit, the collection agencies still do not have the right to do these things unless the court has granted them the right to do so.

Also, professional collection agencies can not publish in any public media anything about the debt issue. They can only disclose information about the debt issue to the credit bureau where they reported the case to.

Likewise, the collection agency does not have any right to call the debtor's company and inform the HR department about the debtor's obligations or worst insinuate that the employee be fired.

And lastly, the most important thing that every consumer should remember when faced with a collection agency is that, these agencies do not have the right to harass the consumer, or threaten them with any physical attacks just to make them pay off their debt.

Consumers should never feel guilty about what they owe when approached by collection agencies. Professional collection agencies are staffed by people who are train to motivate and encourage people to do things in their favor. The collection agency staff will always persevere and are determined to intimidate consumers to make them pay their debt.

It is their job to collect debt and they do this task through talking and lots of talking. The only way that consumer can get rid of pro collection agency staff is to outsmart and out talk them. Or better, to reach an amicable settlement of the debt in the most convenient manner for the consumer.
About the Author
Tristan Andrews writes useful articles about debt collection agencies. Find out how using a collection agency can expand your financial horizons at http://www.collectionagencyservices.net
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