Global collectors, or as most people know them as debt collectors, are individuals who collect
debt on behalf of original creditors.
Most of the time, when a debt collector contacts a debtor, they tend to ignore them. It is because collectors have a bad reputation for harassing people. But this is not true for all debt collecting agencies.
All agencies, whether working at the national level, or working at the international level, have to follow guidelines that protect the debtor. Also, debt collection is an honest business, and most traders are genuine businessmen.
In this blog, we will demystify some myths surrounding debt collectors, which makes people avoid any contact with them. Before that, let’s see what debt collection is.
Debt collection- An Introduction
Debt collection is the process of collecting an unpaid debt or credit loans from a debtor who has missed his/her last few payments on behalf of the original creditor. A creditor can sell the debt or hire a third-party debt recovery firm to collect the debt.
Usually, a creditor waits for 180 days or from one or two months when a debtor misses the debt, before hiring a collector. But this period is subjective to creditors and their policies.
Myths about debt collection
A collector can call you at anytime
No, this is not true. A collector can only call you between 8:00 a.m. to 9:00 p.m. as per your time zone. If they call you at a time which doesn’t come in this time range, it is a federal crime.
However, they can call you after or before this time, if you allow them to.
They cannot call you at work
Another myth is that a collector cannot call you at work. They can call you at work or contact your employer if you don’t return their calls.
But if you tell them that your employer doesn’t entertain such kinds of calls, a collector has to oblige with your request.
Debt collectors call your family or friends to pressurize you to pay
Wrong! A collector can only contact your friends or family to ask about your whereabouts. They have no right to disclose the reason for calling them. If they do that, it is a crime.
Debt collecting agents have the right to garnish your wages
It is not true. To do this, the collector has to follow a particular legal path. The steps of this process are:
A debtor can send you to prison
A long time ago, in the US, debtors who didn’t pay their debts were imprisoned. But now that law has changed everywhere. A creditor can file a lawsuit against the debtor who has full right to defend himself/herself. If the judgment is passed against the delinquent, the collector can seize his property and assets.
Collectors are reputable businessmen and no one abuses his/her power. If you find a collector who is harassing people, report them, as because of one person, the whole debt collecting business is getting a bad name.
debt on behalf of original creditors.
Most of the time, when a debt collector contacts a debtor, they tend to ignore them. It is because collectors have a bad reputation for harassing people. But this is not true for all debt collecting agencies.
All agencies, whether working at the national level, or working at the international level, have to follow guidelines that protect the debtor. Also, debt collection is an honest business, and most traders are genuine businessmen.
In this blog, we will demystify some myths surrounding debt collectors, which makes people avoid any contact with them. Before that, let’s see what debt collection is.
Debt collection- An Introduction
Debt collection is the process of collecting an unpaid debt or credit loans from a debtor who has missed his/her last few payments on behalf of the original creditor. A creditor can sell the debt or hire a third-party debt recovery firm to collect the debt.
Usually, a creditor waits for 180 days or from one or two months when a debtor misses the debt, before hiring a collector. But this period is subjective to creditors and their policies.
Myths about debt collection
A collector can call you at anytime
No, this is not true. A collector can only call you between 8:00 a.m. to 9:00 p.m. as per your time zone. If they call you at a time which doesn’t come in this time range, it is a federal crime.
However, they can call you after or before this time, if you allow them to.
They cannot call you at work
Another myth is that a collector cannot call you at work. They can call you at work or contact your employer if you don’t return their calls.
But if you tell them that your employer doesn’t entertain such kinds of calls, a collector has to oblige with your request.
Debt collectors call your family or friends to pressurize you to pay
Wrong! A collector can only contact your friends or family to ask about your whereabouts. They have no right to disclose the reason for calling them. If they do that, it is a crime.
Debt collecting agents have the right to garnish your wages
It is not true. To do this, the collector has to follow a particular legal path. The steps of this process are:
- Suing the debtor in court and winning the judgment against him/her.
- Still, if the debtor doesn’t pay, you can get a court order, which permits you to garnish their wages.
- But they only do this if they win the lawsuit, without that, it would be considered harassment.
A debtor can send you to prison
A long time ago, in the US, debtors who didn’t pay their debts were imprisoned. But now that law has changed everywhere. A creditor can file a lawsuit against the debtor who has full right to defend himself/herself. If the judgment is passed against the delinquent, the collector can seize his property and assets.
Collectors are reputable businessmen and no one abuses his/her power. If you find a collector who is harassing people, report them, as because of one person, the whole debt collecting business is getting a bad name.
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