The Truth of Credit

First off, the reason I’m writing this post is not because I don’t pay my bills. It’s because I’m a Debt Collector myself and I know very well how the game is played. Any seasoned Debt Collector will tell you how much the industry has changed throughout the last 10 years. As a collector, you just cannot get away with what you used to in terms of intimidating people. This is great for consumers, however, it’s not so great for the one time six-figure collector who can now barely meet his goal for the month. I’m sure you are all heart-broken. Anyway, here is a list of phrases you will hear that debt collectors will use in an attempt to make you pay:

1. The Mini-Miranda - “This is an attempt to collect a debt. Any and all information will be used for that purpose.” If you have ever been arrested this will sound a little familiar, right?
2. “My Firm” - Sometimes they are attorney’s, however, 99% of the time they are not.
3. “We will be obtaining a financial profile”- Often times, a collector only has the information they can gather off your credit report. That is all the information they are ever going to have. That is unless you mistakenly start telling the collector information you should be keeping to yourself. All the other information they obtain is through a process called skip-tracing.
4. “Verifying your employment” - Most employers have smartened up about of giving out employee information. In fact, most require that you make this request in writing and that the employee has to agree to give out that information. Do not do this!
5. “What are you offering?”- Classic negotiation phrase used to pin you down into some form of payment.
6. “Who can help you?”-This phrase you will definitely hear if you are younger and the collector thinks there is a parent who can help you.
7. “Where can I reach you during the day?”-This is an attempt to get a number to your job. If you don’t want calls to your place of employment you better let it be known and leave no room for misinterpretation.
8. “We will just move forward”-Normally, this is a last ditch attempt to peak your curiosity. It makes you think something is going to happen, but most likely you will get another collection call tomorrow.
9. “Do you have an attorney?”-This is said to create a sense of urgency. If the collector flat out says they are going to “sue” you, then beware. However, it better be verbatim that they plan on suing you. Most likely they aren’t there just yet.
10. “I’m sorry, time is not something I can give you” -Again, this is to create urgency and give the illusion that some legal proceedings may be taking place.

Again, a debt collector’s job is to motivate you to pay your bills. For many collectors, all they have is words. I have said numerous times that the Fair Debt Collection Practices Act (FDCPA) is very consumer friendly and the best protection against collectors is to know your rights.  Constantly remind yourself what their motivation is for calling you. What are some of the phrases or words you are hearing? How did you react to those words?