I'm a Bill Collector. Read this.
Date: Mon, 06/01/2009 - 09:45
First off, I work for a Collection Agency that follows the FDCPA to a T. A violation of any law concerning collections is grounds for immediate dismissal from the company.
Second, I'm a debtor just like everyone else in the US. Keep this in mind.
Third, yes, I do get commission pay.
The main reason I'm writing this is to warn everyone against consumer credit counseling, debt management/consolidation companies, etc.
I've attempted to utilize the services of one of these companies before. I want you all to be aware, unlike I was at first, of all the reasons this is NOT the course of action to take to pay your bills.
Joe Consumer calls the company, and they explain all the benefits to him. Sounds great. 150 dollars a month and they settle all my accounts and I don't hear from the bill collectors! Naturally, this sounds like a great deal, especially considering the horrible reputation that has been built for CA's over the years.
But then, the first sign appears that should make it obvious to joe that this is a scam. They give him a contract to sign. If Joe read this contract, he would see that the payments are automatically debited from his checking account, and the contract keeps him locked in to pay the fee per month up front. Keep in mine approximately 15% of all the debt he owes is tacked on to go to the company because they're "handling" his affairs for him. Since they have him in a contract, they essentially get all their money up front.
What do they do with Joe's monthly payments? They stockpile them in an interest bearing checking account, and then when enough INTEREST is accrued they call the creditors/CA's to settle the accounts. Let me explain how it all looks from my end.
I receive a new account. I attempt to call Joe Consumer, and advise them of the account. Assuming I actually make contact with him, he tells me "It's being handled by Debt Management Company X, they should contact you shortly" and hangs up on me. Again, we refer back to the horrible reputation of a CA. Keep in mind I receive these accounts at usually just over 120 days delinquent, so the debt is fresh and well within the SOL. I call Joe Consumer again the next day, because 1.) I have no recorded permission from him to speak with the Debt Management Company (herein referred to as DMGT) which is required, since they are a 3rd party, non-spouse and 2.) They have NOT (as they told Joe they would) sent us any correspondence whatsoever about handling this account.
So I contact the DMGT co. at Joe's request because he's given me their number and permission to speak with them. Keep in mind also that I work for a creditor whose next step after my shot at collection is to file suit, and unfortunately they have every right to considering the debt is within SoL. I get a rep over there on the phone (More rude they couldn't possibly be, 90% of the time) and they try and lowball sif, 20%, etc. And I'd be more than willing to do this for them, but my client won't accept it, and through no fault of my own I cannot close the account for a payment of 20 cents on the dollar. I tell them this, and their response is simply "Sorry, we can't accept at this time" and the call is concluded.
So how many months pass while Joe makes payments to this company until they can settle this possibly five-figure account? 12? 18? Well 6 months down the road Joe gets served a summons by Capital One. He has no idea why. He's received no correspondence from DMGT co. I have tried to contact him to advise him that the account remains delinquent and is doing nothing but stagnating and gaining interest, but he's saved my number in his phone book with a name to remind him not to pick the phone up because it's a NASTY COLD-HEARTED BILL COLLECTOR!
All they do is prevent us from contacting the debtor, and we're supposed to just negotiate with them. The debtor thinks it's being taken care of, because they absorb all my calls.
A collection agency like mine will NOT disclose info to third parties, we get the debt while it's still salvageable (in the case of a charge/credit card) and we can offer you great SIF and Partial Payment plan offers. Technically, you can pay 20 dollars a month on this thing, at NO extra charge, until you get into a position to settle it. And yes, that WILL prevent it from charging off, which looks nasty on your credit report.
My CA charges nothing at all for a check by phone... payment plan in the form of post dated checks, anything, and we leave the door open for you to call us and move the payment or lessen it if life happens as it so often does.
My point is that you should NOT pay a DMGT company for something you can do yourself for free. If you actually plan on paying the bills you owe, your best bet is to actually contact the nasty bill collector, especially if you have one calling you from my CA. (Contact me via PM if you want more details)
Second, I'm a debtor just like everyone else in the US. Keep this in mind.
Third, yes, I do get commission pay.
The main reason I'm writing this is to warn everyone against consumer credit counseling, debt management/consolidation companies, etc.
I've attempted to utilize the services of one of these companies before. I want you all to be aware, unlike I was at first, of all the reasons this is NOT the course of action to take to pay your bills.
Joe Consumer calls the company, and they explain all the benefits to him. Sounds great. 150 dollars a month and they settle all my accounts and I don't hear from the bill collectors! Naturally, this sounds like a great deal, especially considering the horrible reputation that has been built for CA's over the years.
But then, the first sign appears that should make it obvious to joe that this is a scam. They give him a contract to sign. If Joe read this contract, he would see that the payments are automatically debited from his checking account, and the contract keeps him locked in to pay the fee per month up front. Keep in mine approximately 15% of all the debt he owes is tacked on to go to the company because they're "handling" his affairs for him. Since they have him in a contract, they essentially get all their money up front.
What do they do with Joe's monthly payments? They stockpile them in an interest bearing checking account, and then when enough INTEREST is accrued they call the creditors/CA's to settle the accounts. Let me explain how it all looks from my end.
I receive a new account. I attempt to call Joe Consumer, and advise them of the account. Assuming I actually make contact with him, he tells me "It's being handled by Debt Management Company X, they should contact you shortly" and hangs up on me. Again, we refer back to the horrible reputation of a CA. Keep in mind I receive these accounts at usually just over 120 days delinquent, so the debt is fresh and well within the SOL. I call Joe Consumer again the next day, because 1.) I have no recorded permission from him to speak with the Debt Management Company (herein referred to as DMGT) which is required, since they are a 3rd party, non-spouse and 2.) They have NOT (as they told Joe they would) sent us any correspondence whatsoever about handling this account.
So I contact the DMGT co. at Joe's request because he's given me their number and permission to speak with them. Keep in mind also that I work for a creditor whose next step after my shot at collection is to file suit, and unfortunately they have every right to considering the debt is within SoL. I get a rep over there on the phone (More rude they couldn't possibly be, 90% of the time) and they try and lowball sif, 20%, etc. And I'd be more than willing to do this for them, but my client won't accept it, and through no fault of my own I cannot close the account for a payment of 20 cents on the dollar. I tell them this, and their response is simply "Sorry, we can't accept at this time" and the call is concluded.
So how many months pass while Joe makes payments to this company until they can settle this possibly five-figure account? 12? 18? Well 6 months down the road Joe gets served a summons by Capital One. He has no idea why. He's received no correspondence from DMGT co. I have tried to contact him to advise him that the account remains delinquent and is doing nothing but stagnating and gaining interest, but he's saved my number in his phone book with a name to remind him not to pick the phone up because it's a NASTY COLD-HEARTED BILL COLLECTOR!
All they do is prevent us from contacting the debtor, and we're supposed to just negotiate with them. The debtor thinks it's being taken care of, because they absorb all my calls.
A collection agency like mine will NOT disclose info to third parties, we get the debt while it's still salvageable (in the case of a charge/credit card) and we can offer you great SIF and Partial Payment plan offers. Technically, you can pay 20 dollars a month on this thing, at NO extra charge, until you get into a position to settle it. And yes, that WILL prevent it from charging off, which looks nasty on your credit report.
My CA charges nothing at all for a check by phone... payment plan in the form of post dated checks, anything, and we leave the door open for you to call us and move the payment or lessen it if life happens as it so often does.
My point is that you should NOT pay a DMGT company for something you can do yourself for free. If you actually plan on paying the bills you owe, your best bet is to actually contact the nasty bill collector, especially if you have one calling you from my CA. (Contact me via PM if you want more details)
debt
WOW!!! I don't know what to say with THIS one!!!! It sure took alot of guts to tell us all of that, SMITH. YOU writing this actually tells me that there ARE 'human beings' in the world. I want to thank you for the honesty. 'We' do realize that CA's have families, bills, etc. too. It would be nice if they weren't so nasty. The 'consumer' (me, included) can only do what we can do. Can you PM me with some MORE of you good info? Thanks.
