The Truth of Credit

With the implementation of the Fair Debt Collection Practice Act (FDCPA) their are a few important themes that need to be clear on every call. Before the Act was passed debt collection was kinda like the wild west where anything goes with the purpose of getting paid at any cost. While there are still those who feel that nothing has changed but more on that later. One of the important aspects covered in the FDCPA is the use of a Mini Miranda.  The main purpose of the Mini-Miranda when calling a debtor is to be clear on the reason for the call and who is calling.  The Mini-Miranda is simply:

“This is an attempt to collect a debt and any information will be used for that purpose.”

In some states this is mandatory when you make contact with the debtor while others are still behind on this policy. Most collection agencies require this on all of their calls made to ”right party” contacts.  Here is how you should interpret this phrase:

“I’m a debt collector, all the information I get from you regarding your job, finances, and location I will use to track you down if you choose to ignore the problem.”

The TRUTH is that some collectors will use this to their advantage. Many people find this phrase to be intimidating, which it can be if you do not understand your rights. However, you should never be confused as to the nature of the call and this is the true reason behind the Mini Miranda.

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