What are the most common myths about debt collectors?

There are countless myths about debt collectors and the debt collection industry as a whole. Debt collections in many circumstances can be a complex situation for both the business trying to recover money and the consumer trying to navigate financial difficulty.

If we go back to the nightly news programs of past, many of us remember the segments that only focused on some negative behavior of a chosen few working in the industry.

However, that’s just not how the debt collection industry operates currently. Collection agencies play a mission-critical role in the businesses they serve and the overall economy.

But there are still many myths floating out there.

If you want to learn more about the positive aspects of debt collections and dispel some myths along the way, check out a few we have here.

Debt collectors cannot harass you endlessly or at all.

Debt collections is one of the most heavily regulated industries in the United States. There are laws and regulations in place to protect all consumers and one of the overarching themes is harassment. Debt collectors cannot harass consumers in any way. And it’s laid out in federal law under the Fair Debt Collection Practices Act (FDCPA.)

A debt collector cannot harass you with continuous phone calls, threats or profanity.

Ignoring a debt collector does not make the outstanding debt go away

Consumers should understand that ignoring a communication regarding a debt is not the best way to resolve the issue. In other words, the debt in question will not mysteriously disappear. Most consumers are concerned about an uncomfortable and awkward discussion about their finances and that is understandable. But ignoring communications from a debt collector is not advisable.

The most effective way a consumer can rid themselves of this financial situation they are in is to simply pick up the phone and work it out.

Debt collectors cannot have you arrested

If a consumer is threatened by a debt collector that says they are going to have them arrested, they are not dealing with a reputable or ethical collection agency. Having a financial dispute with the business is a civil matter, not criminal. Can a business pursue additional legal action? Yes, and that’s why it’s important to start a dialogue when you are contacted by a debt collection professional.

You can work out a payment arrangement with a collection agency

Many people have this perception of a debt collection call where the debt collector just demands payment in full. But that is simply not the case. If you can pay the outstanding bill in full, that’s great. But if you are having financial difficulty, a reputable collection agency will always work together with you to come up with a resolution and in many cases that is in the form of a payment arrangement. If a consumer is worried about not having the full amount to settle their debt, many times they can discuss payment arrangements. This is important because it helps both the consumer and the business that is trying to collect the money.

This is another reason why it is so important for consumers to pick up the phone. Because there are solutions to the ongoing debt.

Consumers have rights when it comes to debt collections

There are laws and regulations in place on both the federal and state level to protect consumers. We just mentioned harassment but there are many other protections that consumers have when it comes to collections. While they may vary by state, some of the basics include the time of day a debt collector can contact consumers, the interval, meaning how many times in a week a collector can contact a consumer and other important protections.

You have rights as a consumer struggling financially but it is also important that consumers do their part in meeting their financial obligations.

Professional debt collectors help consumers every day

Many people are surprised to learn that a debt collection professional can be one of the most valuable assets a consumer can have when struggling financially. A professionally trained debt collector can help a consumer navigate their way out of financial difficulties. Not only that but there are several occasions where a debt collector makes a consumer aware of issues such as identity theft. That’s why it’s so important to pick up the phone.

If you’re called by a debt collection professional, it benefits you, the consumer to be open to having a discussion about how you can solve this ongoing debt. A professionally trained collector will help you analyze your current financial situation and also assist you on how to move forward to pay the debt off.

Repeat, a debt collection professional can help consumers navigate financial difficulties.