Share post
member profile picture
Posts: 1633
Credits: 0

About collection agencies

When collectors are trained, many call centers require that the agent not give up control of the call. They are trained to be assertive, demanding, and to talk over the debtor during an argument. They are also taught to refer back to any and all possible consequences of non compliance. It is illegal for them to threaten any action they do not intend to or cannot take (a common, illegal threat is to prosecute the debtor for fraud).

Collection agencies are not permitted to call excessively, although the law likely differs from an individual’s opinion as to the definition of excessive. Should you tell a collector that you are going to try to obtain the money in the next few days; the collector will schedule a callback. If you do not call back, the collector will do so starting from the scheduled time/date, and continue for approximately a week. If you have made a promise to pay an amount, the collector will again set a callback time/date. In the event the money is not received and you have not contacted the collector, they will conduct follow up calls, as frequently as twice a day for up to a week. Telling a collector over the phone to stop calling is not effective. To stop all calls, you must put it in writing.

Abusive, illegal tactics by collection agencies can include the following:
Contacting you at work when you have already informed the collectors that it is not permissible
Contacting 3rd parties after contact has been made with you
Disclosing or threatening to disclose information to 3rd parties (friends, family, neighbors, co-workers, supervisors, etc…)
Threatening to have you arrested
Reporting or threatening to report false information on your credit report
Threatening any other action they cannot or do not intend to carry out
Name calling (examples include deadbeat, liar, and thief)
Using profanity
Attempting to collect a debt, or the portion thereof, that is currently in dispute
Contacting you over the telephone after you have sent a letter revoking their ability to do so
Calling in excess of what the law (your state law or the FDCPA98, whichever is more strict) permits
Contacting you in any manner after you have sent a thorough cease and desist letter—except to inform you of any action now in progress, i.e., a lawsuit

In the event of violations, you must preserve your rights. File a complaint with the FTC, the state agency that oversees collection agencies, and/or obtain a lawyer. If the agency is based out of state, you may be able to file a complaint in their state as well.

One of a debtor’s rights when dealing with a 3rd party collection agency is to demand that communications cease. The debtor can demand to be contacted by mail only, or not at all. Should the debtor send a complete CND letter, it is advisable only when the statute of limitations has run out for the debt. Otherwise, the letter will be interpreted (assuming that it doesn’t blatantly state so) as a refusal to pay the debt. The collection agency/creditor may very well file a lawsuit, viewing litigation as the only way to receive payment. A letter restricting communication to letter form only, in many collection agencies, move the debtor’s account from a collector to the compliance department (or whatever the dept is named, that attempts to ensure that the law is followed regarding debt collection) or experienced collectors will prepare a letter for the account.

It is my personal opinion that any and all correspondence sent to the collection agency be sent using certified mail. This is to provide the sender with a return receipt, which may prove very useful evidence in the event you take the collection agency to court.

Many people wish to not work with the collection agency, and instead work with the creditor. A debtor may attempt to work with the original creditor as long as they still own the account. If the debt has been sold, then it is no longer possible to work with the OC. Some entities by policy refuse to work with a debtor once the account has been assigned to a CA. This is not limited to consumer debts, and can include taxes, student loans, tuition, traffic tickets and other civil penalties. Most collection agencies that are collecting assigned debts do so on a contingency basis, and may only settle on the OC's terms.

It is important to know that collection agencies can do the following:

-Require the full payment immediately
-Not accept partial payments
-When attempting to locate the debtor, they may contact 3rd parties to obtain contact info (neighbors, friends, family members, etc…)
-Sue you for the debt (if past the statute of limitations, the defense is expiration of SOL)
-Ask you for your employer, banking info, income, etc…you are not required to give this information to them
-Attempt to collect a debt that has passed the SOL
-Use power phrases, such as “refusal to comply/cooperate”
-Explain any and all possible consequences of not paying off the debt*
Many collection agencies will perform some level of negotiating.
Simplified examples of negotiations may include the following:

-PIF demand --> settlement of 2/3
-PIF demand --> ½ down, ½ in 2 weeks or a month --> ½ down, 2 payments of 1/4
-PIF demand --> 2/3 down, partial payment plan over 3-12 months
-SIF offer, limited time only

The older the debt, the lower a company may be willing to settle for, but no matter which collection agency is attempting to collect, they will likely use boiler room tactics. In other words, the money must be in by 2 p.m., end of the day, end of the week, etc… Whenever a debtor is told that the money must be in by 2:00 p.m. (sometimes 3 p.m.), it is often because any payments received after that time will be applied to the next business day’s collections. Towards the end of the month, the collection attempts often get more aggressive. This is because most collectors/collection manager’s bonuses are based upon some form of monthly productivity, and they are striving to reach or maximize that bonus check.

The terms will soften only over time, provided the CA does not aggressively litigate. After each offer you are given is rebuffed, the collector will likely press you harder by explaining possible consequences (and in the case of abusive collections, will threaten you with things they cannot actually do).

On accounts that have passed the statute of limitations, collectors will attempt to have you verbally acknowledge the debt, especially if the call is being recorded, or having you make a token payment. Even a minuscule payment, or a promise to pay, will restart the clock. A cease and desist letter that does not acknowledge the debt, but does inform the CA that said debt has lapsed is probably the best defense.

Some collection agencies will refuse all payment plan offers, accepting only the BIF. These most aggressive companies will only take the PIF, or litigate the matter. Unfortunately, if they are legally entitled to collect the debt, they then do have the prerogative to proceed this way. Even though it isn’t “right,” it is legal. Before suing you, a debt collector must have either bought the debt, or been assigned to collect on the debt by the entity that does own it. In the event a debtor has asked for validation and is sued prior to being given said validation, then the debtor should answer with a counter claim for FDCPA8 violations.

It might be worth noting a couple of other things. First, many collectors are rarely paid a good wage. They may be paid a few dollars above minimum wage, but have the incentive of a potentially large bonus check after exceeding the amount they are budgeted to collect. The bonus can effectively double or better their standard wages. A second interesting fact is that a good number of collectors end up with the job after having been collected upon themselves, even with the same office if they live in the area.

*There is a difference between giving possible consequences and threatening.
For example: A collector may explain that failure to pay a traffic citation can result in the driver’s license being suspended (if that in fact can happen). A collector may not state that he/she is going to suspend the license unless the debtor pays.

BIF = Balance in Full
SIF = Settlement in Full
PIF = Paid in Full
CA = Collection Agency
OC = Original Creditor
fdcpa = Fair Debt Collection Practices Act
FTC = Federal Trade Commission

Morning star
Does the letter asking collectors to cease communication with you other than by written correspondence apply after there is a judgment against you?

Sub: #21 posted on Sun, 09/02/2007 - 18:19


While a collector with a judgment may be able to obtain payment through involuntary means (for example, a garnishment), they are still bound to follow the fdcpa.

Sub: #22 posted on Mon, 09/03/2007 - 00:17

Morningstar Morningstar

(Posts: 1633 | Credits: )

If you pay a collection agency in full are they obligated to remove the item from your credit report.

Sub: #23 posted on Sat, 11/24/2007 - 10:01


If you pay a collection agency in full are they obligated to remove the item from your credit report.

Nope. The will just mark it paid in full. You could negotiate a Pay for Delete.

Sub: #24 posted on Sat, 11/24/2007 - 13:41

Moderators Cum Industry Expert
(Posts: 17319 | Credits: )

Also, make sure you get a letter from anyone saying that your account is paid in full!!..karen

Sub: #25 posted on Sun, 11/25/2007 - 09:11

Bossy4455 Bossy4455
(Posts: 5854 | Credits: )


A very good post!

But, a few points, maybe out of context.

You should NEVER take what a CA says you owe for a debt to be true.

You should NEVER call a CA or talk to them on the phone.

As a matter of fact, you should NEVER make arrangememnts to pay them at all.

Even if you make a deal with them, it will not improve your credit score/rating and probably will hurt it.

In fact, most CA's will not have the proof you owe the debt they have purchased. You MUST create a paper trail, insist they abide by the LAW, which by the way, they are hoping you are ignorant of.

Make sure you dispute the trade line with all the CRA's the debt is showing up on at the SAME time you DV the CRA!

The CA has 30 days to prove you owe the debt and NO MORE. This means they have to show you documents from the OC!

I am suing asset acceptance llc for this very thing. It took them 3 months to work up some doc's. NOT acceptable.

Don't let these out of control CA's ruin your life!


Sub: #26 posted on Sat, 03/15/2008 - 17:46

mysty147 mysty147

(Posts: 2 | Credits: )

Mysty.......good post. I DO have a question ( as usual..LOL). If you KNOW you owe a debt, and CA's call constantly, according to Morningstars post ( some time ago) a CA does NOT have to take 'partial payments, etc.' ..or...'lower a payment arrangement'. I tried to work something out, with a CA, for another ( possible?) payment arrangement. My work hours, dropped a bit, and I was explaining this to them. They basically said, " sorry to hear that, but, we can't change anything." They ALSO said they wouldn't "accept anything less per month." I haven't made any payment, to them for a few months, now. They HAVE called a few times..asking for "banking info' and "updated info." God...what a pain!! I started a new job, since then. Making better money and more hours. Should I send them WHATEVER I can right now? I was making payments, through Moneygram, so, I don't understand why they were asking for bank info. Advice please.

Sub: #27 posted on Sat, 03/15/2008 - 20:06

sdchargers_63 sdchargers_63

(Posts: 1798 | Credits: )

You should NEVER call a CA or talk to them on the phone.

Never say never. There are good reasons to talk to a collector.

As a matter of fact, you should NEVER make arrangememnts to pay them at all.

That is absurd.
A debtor may be sued for the debt.
In the case of court fines, traffic citations, etc... the driver's license may be suspended, and state tax refunds may be intercepted.
If a federal student loan, federal tax returns may be intercepted, wages can be garnished, social security payments can also be garnished. If the debt in question is a private student loan, there is no SOL...

I am suing asset acceptance llc for this very thing. It took them 3 months to work up some doc's. NOT acceptable.

Good luck with that. If more people held CAs accountable for violations of the law, I think more collectors and CAs would work in compliance with the law.

I was making payments, through Moneygram, so, I don't understand why they were asking for bank info. Advice please.

You missed a payment. They probably want to set up an auto payment from a bank account.

Sub: #28 posted on Sat, 03/15/2008 - 20:45

Morningstar Morningstar

(Posts: 1633 | Credits: )


Hey Chargers

First of all, cease all phone contact with the CA.

Secondly, send them a Cease and Desist letter. Tell them you only accept communication by mail and not the phone. Make sure to send the letter CMRRR.

After you receive the green card, if they continue to call, write down every instance they not answer the phone....this will begin to build a case against them if you want to sue them for violations.

You also need the CA to prove you owe them money.

Write the a DV letter, demand that they show proof that you owe them money, what it's for, how they calculated what they say you owe and demand the original documents with your signature from the OC proving that this is your account. Even if you know this is your account, make them prove it.

They have by law 30 days to comply. Be familiar with the FDCRA and the FCRA. There are some letters on this forum to get you started.....try not to write the letters verbatim. The CA's get hundreds of letters a try to change the wording, write it longhand or print it off the PC with stationary paper.

Let me know how it goes, or if you have anymore questions.

Good Luck and be strong!


Sub: #29 posted on Sat, 03/15/2008 - 20:53



I have to disagree....there are never good reasons to talk to a collector, especially when they are trained to manipulate you. You always need a paper trail, trying to reason with someone on the phone whom is trying to get you to PAY by any means possible is a BAD phone convos!

Sub: #30 posted on Sat, 03/15/2008 - 21:05

mysty147 mysty147

(Posts: 2 | Credits: )

Page loaded in 0.173 seconds.