Francis Mwendo
Debt collection-Facts vs. force
The title ‘debt collector' is self-explanatory and clearly
states what such a person does. If you owe money to a
lender and there has been a delay in payments over the past
few months the lender may choose to either use their
in-house service or employ a specialized debt collection
service provider.
If it is a third party i.e. a specialized collection
agency, they usually purchase your debts for less than you
owe from your lender and then the debt becomes theirs.
Therefore, they then have vested interests in settling the
same.
Having a debt collector knocking on your door or receiving
his call a number of times a day can be distressing. There
is however a way out to the problem. Put in one word it is
‘awareness'. An awareness of your rights and safeguards.
This will control the debt collectors and not the other way
around.
Debt collectors while doing their job may tilt towards
being forceful and intimidating. As a defaulting borrower,
you are already on a back foot. However, you can still
stand firm and not give in to their demands. Here's how:
The job of a debt collector is to advise you that you owe
some monies. He cannot threaten abuse or intimidate you by
threats of harm or police action. A debt collector may
establish contact with the borrower in person, via sealed
mail, telephone, fax or a telegram. He can not use a
postcard as it can be read by anyone. He cannot also call
before 8 a.m. and after 9 p.m., unless you agree on a time.
The first call from the debt collection agency has to be
followed up by a written statement clearly stating your
creditor's name, the actual amount owed and what action he
can take if you do not acknowledge the money owed. This
written letter must be accurate and have no false
information.
Also note, the debt collector cannot contact your
relatives, friends, neighbors etc unless to obtain your
contact information. In such circumstances he cannot inform
them that you are in debt. You are entitled to your privacy
even if you are in default.
Remember you cannot and should not force the debt
collectors to coerce you into making payments as per their
demands. A number of collection agencies work on the
premise that the best way to get the payment is to make
sure that it becomes number one on your priority list.
While you know you owe the monies, you have to ensure that
you clearly prioritize your finances. If there is a greater
and pressing need for your money, like for medicines or
food then you must allocate the funds accordingly.
You can choose to directly negotiate with the debt
collector or appoint an attorney instead. If you deal
directly, do not feel compelled to offer private
information that can be misused to force payments from you.
E.g. where you work, your personal account information and
the like.
Always seek written communication from the debt collector
instead of phone conversations. This will put pressure on
the collector to be polite and accurate in his dealings
with you. All agreed terms and conditions would also be
clearly outlined. The original amount owed along with any
interests and fees, should also be clearly mentioned. It is
also a good idea to tape your phone conversations after
having explicitly informed the collector when he calls that
the same is being recorded.
If your debt collector continues with his forceful methods
you have a right to redress. You can complain to the
concerned authorities within your jurisdiction and obtain
relief.
The best way to counter force is through knowing the facts
and standing firm on them.
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