Debt Collector Tricks Creditors Don't Want You to Know
Debt collection is always a tough subject. It's already stressful when debtors owe creditors money. Being tricked by debt collectors doesn't make the situation any easier.
We created a list for all you debtors out there who owe money to collectors. These are the top debt collector tricks that creditors don't want you to know. Read through the list so that you can prepare yourself for these tricks and take the necessary action if you need to.
1. Calling Incessantly
One of the most common debt collector tricks is incessant calling. The logic behind it is that the debtor will become so tired and beat down by the repetitive calls that he or she will succumb to the demands. Debt collectors often think that debtors have hidden money that they will pull out of their magic hat if they feel pressured.
Unlawful?
The law considers repetitive phone calls as harassment, and the Fair Debt Collection Practice Act forbids such behavior. You have the right to go to the state or federal government or file suit if a debt collector ceases to contact you after you make a formal request.
2. Calling at Odd Hours
Many people don't know this, but debt collectors are only allowed to call a debtor to collect funds within a certain time frame. They are not allowed to contact debtors before 8 a.m. or after 9 p.m. However, another one of the common debt collector tricks is that they will call early in the morning or late at night.
Again, the law forbids such behaviors, and you have the right to report it as a protected debtor. The Consumer Financial Protection Bureau is the place to go if you ever feel as though a debt collector is violating your rights.
3. Calling From Unknown Numbers
The "unknown number" trick is one of the oldest debt collector tricks in the book. Collectors feel that a debtor is more likely to answer a call if they disguise or hide their number. Therefore, they will often call debtors from unknown or private numbers. Many of them use the call blocking feature to hide their numbers from the recipient's caller ID.
The best way to get around this tactic is to have all of your unknown phone calls blocked or sent directly to voicemail. Let the caller leave a message if that person has something urgent to say. Usually, debt collectors won't do that. They'll keep trying at different hours of the day instead, and they hope that someone will answer one of the many times that they call.
4. Calling From "Local" Numbers
Local number deception is the latest of the many debt collector tricks. Debt collectors now use specialized software to mask their real numbers. The software allows them to disguise the phone numbers and pretend to have the same area code and exchange that the debtor has. This trick entices the debtor to answer the phone because he or she might think it's a call about a job application or some local business they're conducting.
Don’t Answer Anonymous Calls
The best defense against this tactic is to avoid answering your phone if you don't recognize the phone number on the screen. You will receive a voicemail message if it's something urgent from a person or business that you know.
5. Contacting Friends and Family Members
A lot of debt collectors get desperate and start calling a debtor's friends and family members. They are allowed to contact such people if the debtor provides their names and numbers as references in an initial application. However, they are not supposed to discuss the consumer's debt with anyone other than the consumer. Doing so is a violation of the FDCPA.
If you experience this violation, you can report it to the organization referenced above. They will investigate the issue and possibly reprimand the debtor for using debt collector tricks to get what they want. The consequences might be tremendous.
6. Pretending to Be a Long Lost Friend
Sometimes debt collectors get personal and use debt collector tricks that are downright underhanded. They play on debtors' emotions by contacting them and pretending they know them personally. For example, a debt collector might call someone up and greet them with a, "Hey, buddy" or "What's up?" knowing that the debtor doesn't have a clue who they are.
This tactic is rather shady, and debt collectors are supposed to be transparent at all times. They are supposed to identify themselves fully, state their purpose, and then talk to the debtor about the cost of debt. They are not supposed to use dishonest practices, but this one is so vague and hard to prove that they often get away with it.
7. Verbally Abusing Debtors
Debt collectors and collections specialists earn money for each account that they get the consumers to pay. Some of them work on a commission-only basis. Therefore, they get stressed and angry when it doesn't seem like they're going to get the pay they desire.
This often leads to more aggressive debt collection strategies, and it gets ugly sometimes. A debt collector might even use profane language or verbal abuse to make the debtor feel so low that he or she pays the debt. You don't have to stand for such treatment. It's against the law, and in some cases, collections people can go to jail for their debt collector tricks.
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8. Making Threats
A debt collector is supposed to discuss paying down debt with the consumer once they identify that person's identity. They are allowed to let the debtor know how much they owe and ask for payment. They can also make payment arrangements if the debtor doesn't have the funds at that moment. However, the law prohibits debt collectors from threatening debtors. They can threaten to sue a debtor, but only if they intend to follow through with the suit.
They cannot, however, threaten to garnish a consumer's wages, get them fired, or send them to jail because those things are not within their power to do. Both idle and unachievable threats are a violation of the FDCPA.
9. Asking for Postdated Payments
Debt collectors sometimes ask debtors to postdate checks. It helps them to feel more secure that they will receive some funds from the debtor at a certain time.
Varies from State to State
Each state has a different law about postdated checks. Some states allow them while some other states frown on them. Check your state to see if it is one that allows postdated checks. If so, you can opt to do one, but it might not be smart for you to do so. You'll have to give the debt collector your personal banking information, and you might want to avoid that just in case they "accidentally" charge you more than you agreed to. That may or may not be an illegal practice, but it's very possible that they may try it.
10. Pretending They Can't Make Arrangements
Another one of the debt collector tricks is that they act incorrigible and unmovable. They may lie to a debtor and tell that person that there is no way they can work out a payment plan or that payment must be made that day or consequence X, Y, or Z will occur.
As a debtor, you don't have to put up with lies, and you don't have to feel pressured to come up with money you don't have. Offer the debt collector what you can afford to offer and not a penny more. They will always be willing to take what you offer because it doesn't make sense for them not to.
11. Not Telling You Who They Are
Debt collectors will often use ghost calling as one of their popular debt collector tricks. They will call debtors and not identify themselves. They'll ask, "Is this so-and-so?" over and over again until the debtor confirms that they are talking to the right person. Debt collectors are supposed to state who they are.
They are not supposed to use any shady tactics to get information from the debtor. If they call you and cannot tell you who they are, you have every right to hang up and refuse to talk to strangers. It's only natural to want to know who you're talking to before you engage with that person.
12. Contacting You at Work
Many debt collectors call debtors on their jobs. While it may be embarrassing and offputting, it's not considered as one of the debt collector tricks. It's a fair and allowable practice, but only as long as the debtor allows it.
Ask Them to Stop
If a debt collector calls your job, you have a right to ask them to stop contacting your place of employment. They are supposed to stop calling your job immediately once you ask them to stop. You have legal recourse if they continue to contact your employer after you make it clear that you don't want them to do so anymore.
13. Telling Other People Your Business
As stated before, a debt collector is only allowed to talk to the debtor about his or her debts. It is horribly against the law for a collections person to speak to any other person about the debt. That's a clear cut ruling, and it's not to be broken. If you feel that a debt collector has crossed the line on you, you can report it to the entity stated above, or you can contact an attorney to see what options you have in terms of a lawsuit. You may be surprised about what you can accomplish that way.
14. Adding Fees to Your Bill
Debt collectors sometimes use the trick of adding extra fees to a debtor's bill. They are only allowed to tack on fees if they are fees that the debtor signed an agreement to it in the original contract. Debt collectors cannot add any additional charges other than those.
15. Pretending to Be Attorneys
We've already stated many times that debt collectors have to be transparent, and they must disclose who they are. They cannot call a debtor and pretend to be someone such as an attorney or legal specialist. That practice is a violation of the FDCPA indeed, but it's also against the law.
A Crime
Serious consequences can fall upon a debt collector that disguises himself or herself as an attorney. That debt collector might have to face impersonation charges, which is a felony crime. You have a right to report it to the authorities if it happens to you.
What You Can Do to Stop the Mistreatment
You don't have to give into debt collector tricks and games. There are many things you can do to help yourself to get through rough times so that you can get back to having a strong financial profile. These are some tips for you if you are dealing with debt collector nonsense.
1. Learn Your Rights
Education is the key. As a debt collector, you should know the rights you have and the steps you should take if you experience debt collector tricks or harassment. Study the Fair Debt Collection Practices Act. Memorize every line of it so that you know when a debt collector is unlawful. Take the instructed steps if you believe a debt collector is mistreating you. You have a right to protect yourself as a debtor, and no one can fault you for that.
2. Dispute the Debts
One thing that you can do is nip debt collector tricks in the bud the moment you get a letter from a collection agency. Ignoring the letter is one of the worst things you can do because it will eventually give the debt collectors carte blanche to do something to your finances. Instead, open the letter and read what it says. Pay close attention to the original creditor's name and the balance that the letter says you owe.
You have the right to dispute the debt if you do not feel as though you owe it. You should write the letter within 30 days of the receipt of the debt collector's letter to you. Let them know why you feel that you do not owe the debt. They will have to prove that you do before they can proceed or take any actions against you
3. Write a Cease and Desist Letter
Type up a cease and desist letter if you feel as though a creditor is harassing you at your job or your home. Politely request that they stop doing the harassing activity, and make sure that you mail it certified with a signature to prove that they received it. Keep a copy of the letter and the receipt with you at all times in case you need to prove that you had the interaction in court one day. Debtors are bound by law to stop the harassment once the debtor asks them to stop.
4. Negotiate the Debt
If you believe that your debt is valid, you will need to come up with a solution to repay it. You are allowed to work out payment arrangements with a debt collector to get your debt paid. Let the debt collector know that you are willing to make monthly installments until you repay your entire debt. You may have to offer some banking or credit card information to set up the payment plan. If you are okay with that, then you can resolve the issue very quickly. You're also entitled to do a debt settlement agreement with the debtor where you pay a portion of the debt, and the creditor agrees to mark it off as paid.
5. Contact an Attorney
You have the right to contact an attorney at any time and ask him or her for legal counsel. An attorney may grant you a consultation, and you can discuss your situation at that time. The attorney will let you know if he or she can represent you and what might happen with the debt collector once the dispute is over. It doesn't hurt to try to contact an attorney. You may also want to reach out to a credit counselor for advice.
6. Consider Filing for Bankruptcy
You can consider filing for bankruptcy if you are unable to repay your debts, and you have found yourself in an impossible situation. The attorney will conduct a series of tests to see if you qualify for a Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 ruling will allow you to keep many of your assets. If you are eligible for Chapter 13, you will have to repay some of the debt. You'll also have to come up with a repayment plan to which your creditors have to agree. Schedule a consultation at your earliest convenience to see what you can do.
Contact Us if You Need Help
You can reach out to us if you have an issue with debt, and you need help locating financial products or debt relief tools.
We can connect you with a vast assortment of lenders and financial professionals who can assist you in your endeavors to clean up your profile.