What Is A Debt Collector?

What is a debt collector? A debt collector is aGiven the very high stress aspects of this job - given
company that buys accounts - old auto loans, creditthat they are repeatedly calling people in pursuit of old
card loans, medical debts, etc. etc. - from the originaldebts - there is high turnover in the debt collection
creditor. If you've been contacted by a debt collector,industry.
you may choose to contact a consumer debt lawyerNote that if a collector calls and reaches someone
Raleigh or consumer debt lawyer Cary.other than the debtor, the debt collector is legally
Usually a debt collector will buy an account either 120prohibited from disclosing the reason for the call.
or 180 days after the account went into default. TheIf the collector reaches an answering machine or voice
debt collector will typically buy the account for penniesmail, s/he will often leave a message, but is prohibited
on the dollar. A recent 2009 report showed that debtfrom explaining the reason for the call, since someone
collectors bought "fresh" accounts for less than 10besides the debtor might hear it.
cents on the dollar. The older the account, the less theCollection agencies are required to provide a phone
debt collector paid for it.number which is free for the debtor to call.
Sometimes the debt collector calling you will be theMost debt collectors have their employees use a
2nd or 3rd debt collector to buy the account.script, which contains a pre-written introduction, request
Debt collectors hire dozens, sometimes hundreds, offor payment, and has various branches to follow,
people to sit in large rooms with phone banks. Thedepending on how the debtor responds.
phone banks are connected to automatic dialers thatIf a particular debtor is taking up too much time, without
dial phone numbers automatically so that the individualmaking arrangements to pay, the collector will be
debt collector simply moves from call to call. Theinclined to move on to other accounts.
automatic dialers are powered by software thatNote that any information you give about your financial
"predicts" when people in that part of the country willsituation will be noted on the account record and used
be home or awake in order to receive the call.against you. For instance, if you indicate that you are
Most debt collectors are not local. They do notworking and do have assets, that information will be
operate out of North Carolina. Rather, they operate outnoted on the account and you are likely to receive
of Texas or Nevada.more, not fewer, calls because the debt collector
Typically employees of debt collectors - the peoplerealizes that you have the ability to pay.
making the phone calls - are paid partly on a salaryIt is best not to disclose any information to a debt
and partly by commission. That means that the morecollector. Instead, you should keep a call log of all
money they collect from delinquent accounts, the morecontact with debt collectors, including the name of the
they make in take-home pay.person calling, the company they are calling from, their
In addition, many of the debt collectors employ goofyphone number, the debt they are calling about, the time
techniques to keep enthusiasm high. For instance, a bellof the call, and any comments that the debt collector
will ring or balloons will fall when a big account ismakes, including threats and rude or threatening
collected.behavior.