The Truth of Credit

 Today I will get into Part 3 of 4 in a breakdown on Chuck Jaffe’s article, “Strong-arm tactics, One Student’s Run-in with the Seamy Side of Credit Collection”.

Chuck writes:

The collectors ignored pleas made on Mackenzie’s behalf for time to make a thoughtful decision and kept calling everyone they could reach. They were not concerned about on-the-record conversations because they never acknowledged that any calls were in the wrong.

Rick’s Take:  TIME!!! You had 6 months to figure out what to do!  It’s hard to understand that some people are truly surprised by calls they get. Time is not something the collector has unless you make a payment.  Once it comes to this point in collections only MONEY talks. Collectors understand that the longer the account is in the office the less likely it is to be collected. This is a point that needs to be emphasized…more on this in the future.

Chuck writes:

Yet those calls seemed to be a clear violation of the Fair Debt Collection Practices Act, which allows collectors to call family and employers only to “locate” the debtor (and Mackenzie had kept Chase current on her address and phone number, so her location was never in question).

Rick’s Take: I would need more information to see if this was a violation or not.  I have a hard time believing that if she was in contact with collector that they would contact relatives or neighbors. Not only is that inefficient but not necessary.  It is my belief that weeks past in between contacts that was why the skip-tracing was done.

Chuck writes:

Moreover, unless those third parties request a second call, the collector is not supposed to call more than once. Calls at work are forbidden, unless the consumer says they are OK; calls to the employer are a distinct no-no. So is threatening legal action unless the collector intends to follow through; a week after Rizzo first threatened action in speaking with my wife, NES collectors were threatening legal action again, this time if I didn’t pay the debt. Obviously, their first threats weren’t exactly serious.

Rick’s Take: Keyword here is “action”. Action is a buzzword and one I try to refrain from. The issue that gets confused is that the creditor has rights in your state and they have the ability to use those rights.  Also, a collector does not need permission from the debtor to call a place of employment.  However, it is illegal for a collector to even mention legal action, judgment or litigation unless they intend to go through with it. 

The TRUTH is a collector is supposed to create a sense of urgency.  Yes, they need to stay in bounds but creating a sense of urgency is their ultimate objective.  If you feel like you have been mistreated speak with a manager. If you feel like they have wronged you or misrepresent your situation go up the latter until satisfied.    

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