7 debt collection myths we have been hearing for so long

Debt collectors have a reputation for being scary. It is especially overwhelming for people who
have no idea about the debt recovery process or who they are.

Added to this is the fact that there are a lot of myths and rumors surrounding them. All this
makes people even more suspicious of collectors, which in the end harms them and their credit
score only.

That is why in this blog, we will debunk some of the common myths about collectors. It will help
you work with them to pay off your debts without any problems.

Let’s begin..

Myth 1: Debt collectors always have the right information

Assuming that they always have the right information about your debt is wrong. Sometimes they
get the wrong information, or some collectors can be corrupt too. All debtors can apply for the debt
validation process, and ask for proof regarding the legitimacy of the debt.

Myth 2: Debt collectors always harasses you

There are indeed some collecting firms that abuse consumers. But reputable firms like Cedar financial
never harass the debtors. All collectors follow the guidelines written by FDCPA. It ensures that no
collector misuses their powers or abuses the delinquent or his/her family in any way.

Myth 3: You can avoid debt with a cease and desist letter

Another myth is that a cease and desist letter can only stop collectors from calling you. It doesn’t
make your debt go away, and your credit score will still be affected, and you will have a hard time
getting loans.

Also, the lender can assign your debt to a new debt collector making your letter null and void.

Myth 4: If you tell the collector to stop calling you, they will

It is only partially true. It works in two ways. First, if you tell the collector not to call you at work
because your employer doesn’t approve it, they will oblige. Also, they consider the request not to
call you at a certain time, which is inconvenient to you.

But if you wish them to stop calling you completely, a verbal request won’t work. You would require
a written request for this.

Myth 5: When you pay off a debt, it is removed from the credit reports

No, it is not true. When you pay off your debt, the collector is under the obligation to update that you
have paid for it in the credit report. They are not obligated to remove the debt from your credit score.
It is because you still owed a debt.

Myth 6: If you pay the debt partially, the collectors will go away

No, because you haven’t paid in full. The collectors will stop calling you for some time after you make
a partial payment. But eventually, the calls will resume reminding you about your partial debt.

Moreover, if you pay the debt as per the payment agreement, it will stop the calls. But only till you
are respecting the agreement, if you don’t, the calls will resume.

The next time you get a call from a collector, don’t let these myths cloud your judgment and decision
making power.