The Truth of Credit

 This is Part 2 of the breakdown of Chuck Jaffe’s Article “Strong-Arm Tactic” One student’s run-in with the seamy side of credit collection. Yesterday, we went over the 2 major mistakes people make when faced with overbearing debts.  Today, we get into some of the problems that I see in the article and from experience on both sides of the coin may help you avoid in your future.

Chuck writes:

The objective was clear: Find a way for an individual trying to do the right thing to get out from under the pressure, create a repayment plan and get on the road to recovery. Then explain the process to consumers in a similar situation.

Rick’s Take: At the point at which a debt is charged off usually after 180 days with non-sufficient payment. That’s right 180 (6 months) days. For what ever the reason the credit card company has the right to know what is going on with their money. You had 180 days to contact them and set up a new plan. Why should they give you a “repayment plan”? Check the contract that was agreed to. Your “repayment plan” was to make the minimum payment each month not, 6 months later now it’s convenient for you.

Chuck writes:

With Mackenzie’s resolve to avoid bankruptcy and her improving earnings, it should have been a straightforward process. Instead, it was virtually impossible, due largely to harassment from the collection agent.

Rick’s Take: We all want to avoid bankruptcy. “Harassment” is a loaded word here. Is it harassing because the collector is asking for money or is it because they volitated FDCPA? None the less these matters are never straight forward if it were they would have never gone to collections.

Chuck writes:

NES collectors called Mackenzie’s employers, repeatedly. They contacted her parents (she has not lived at home for several years), called her several times a day at work. When they got my wife’s phone number — believing she was a potential source of settlement — they called her several times a day, even after they were told to stop.

Rick’s Take: Certainly, there may have been some violations of FDCPA on this one. However, if I leave 3 messages for you after 5pm and you don’t call back. Guess what, I’m going to start looking for you. If collectors continue to call after you tell them to stop. Then speak to manager. I know it’s a pain in the ass to take 2 minutes of your time but please people get over yourself.  If they keep calling report to the Attorney General. (would link the site but there are 50 different states). Believe me the Agent will get wind of the complaint.

The TRUTH is being in collections is obviously not a place you want to be. Let’s look at from another point of view. If someone borrowed $15,000 from you and they did not return a calls what would you do?

If you enjoyed this post, make sure you subscribe to my RSS feed!