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13 Things a Debt Collector Won’t Tell You

Debt collectors and former debt collection agency employees offer up an inside look at what its like to collect your dues.

By Michelle Crouch from Reader's Digest magazine | October 2011
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1. They teach us that all debtors are compulsive liars,

and no matter what you tell us, we’re supposed to keep pushing. So we ask, Can you borrow the money from friends and family? Can you take money out of your 401k? Can you pay it with another credit card? All horrible ideas that would make a good financial planner cringe.

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2. Like us or not, we’re a vital part of keeping the cash flow going in this country.

In 2010, more than 10,000 collection agencies collected over $8 billion. Can you imagine the impact on the economy -- and on all the companies that were owed money -- if that $8 billion hadn’t been collected?

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3. We’ve heard every tale of woe.

We may listen and act sympathetic, but in our notes, all those excuses are summed up as HLS, for “hard-luck story.” You’re wasting our time, and time is money.

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4. The more money I get out of you, the bigger my bonus will be.

Every month, we watch top performers get bonus checks of $10,000 or more.

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5. We also have an astounding power to wipe out thousands of dollars of your debt.

Most accounts have a one-time settlement rate that’s preapproved (typically 15 to 35 percent on credit card debt).

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6. A lot of agencies buy debt for pennies on the dollar,

so always start your settlement offer low, maybe 25 cents on the dollar. Say something like “I have $200 that I can apply toward this debt. Will you accept that as payment in full?” If I say no, ask what I’m willing to accept as a settlement and negotiate from there.

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7. Sometimes when we’re negotiating, I’ll say I have to get a manager involved,

and then I’ll have another collector be the “bad cop.” The theory is that just having another voice on the line will open up your wallet.

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8. Always check whether the debt has passed the statute of limitations

in your state (see a list at creditcards.com). If it has, we can’t sue you or put it in your credit report. However, if you make any kind of payment or even acknowledge the debt, that usually starts the clock over.

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9. If you decide to settle, I am trained to “take your application.”

In a bored voice, I ask for your cell number, your spouse’s work phone, and so on, as if I’m filling out a form. But it’s just a way to get the information we need to find you in case the settlement falls through.

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10. We love calling you at work

because of the extra pressure it puts on you. If you specifically ask us not to, by law we have to stop, but we’re not going to tell you that.

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11. Don’t ask for a manager.

He or she will not help you. You’re better off just calling back and getting another collector on the line.

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12. Many times when we leave a message on your phone,

it’s just a recording of a made-up person. Our office uses the name Jim Taylor. When you call back and ask for him, we say he’s out to lunch and offer to help you instead.

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13. If I threaten to have you arrested, use profanity, or call before 8 a.m. or after 9 p.m.,

report me to your state attorney general's office (naag.org) and the Federal Trade Commission (ftc.gov). Those are violations of the Fair Debt Collection Practices Act. Sources: Fred Williams, who worked as a debt collector for three months to write Fight Back Against Unfair Debt Collection Practices (FT Press, $21.99),; Michelle Dunn, former owner of a debt-collection agency and author of The Guide to Getting Paid (Wiley, $24.95); and debt collectors in Florida, New Jersey, and Pennsylvania.

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Your Comments

  • Good Guy Bill Collector

    #14) We are people too. Our job is a honest one, just like any other. There are a few who give a bad name to the many, much like lawyers, cops, etc. The actions of those few get perpetuated by slanted media such as this, as well as “stories” passed on by the uneducated.

    #15) (What we can’t say, but would love to.) You are not entitled to any reduction in the amount you owe. You are not entitled to having your debt eliminated. You have personal responsibility for the actions you take to pay back: the money you borrowed, the doctor that treated you, car you financed, the credit you charged. Accept your personal responsibility & do what you can to make it right. Change your priorities.

  • Carol041872

    While I appreciate most of what you said, I must add that SOME doctors, have been paid a negotiated rate by the insurance company and have a sliding scale based on the type of insurance, or lack thereof, a person has.  Come on, the same procedure should cost the same no matter what sort of health insurance they have.  Don’t charge me sometimes twice as much because I have insurance and expect me to make up the difference for someone that doesn’t.  And while we are at it, hospitals routinely charge for procedures and products no provided.  Always ask for an itemized statement and go over it with a fine toothed comb.  I was charged for a prostate cancer screening during my stay…..for childbirth….hmmmmmmmm. 

  • http://www.schnittshow.com Schnitt

    While i admire what your trying to do, your industry is too tarnished and will be lucky if its not outlawed within the next 10 years.

    Should people pay their debts, yes no question.
    But in this new society that is emerging, people will not pay their debts and our financial markets will collapse, after 30 or so years of suffering maybe we will get back to fiscal responsibility

  • Sandra

    Ok, fine. But everyone that called my friend, his daughters, his daughters’ husbands’ families, acted like he was a criminal for not paying dept a judge said was not his to pay(it was his x-wives)
     
    These were not the “few” who gave a bad name to people, this was everyone that called.  

  • Guest

    You forget to say that you in effect are paid by commission on what you collect. So you don’t give a sh*t about the people you harrass. Your job could be an honest one, but none of you are honest in your dealings.

  • Harmenthatshell

    re: #15. I have no more idea about your integrity, ideals and honesty any more than you do of mine.  When I got called, I reminded the mercilessmercinaries of this.  If you truly believe that every single person you “Good Guy” abused was COMPLETELY in the WRONG and you know EVERYTHING about EVERYONE, you should first demand those banks give back EVERY PENNY of TAXPAYERS’ BAILOUT money, and then go shoot yourself in the head for thinking you’re GOD

  • Inachu Ikimasho

    Some sports fitness clubs entice you to join.  Sign up and the member who referred you gets a free extra month!  My friend never got her free extra month so that voided the contract. But they kept calling anyway.  Lucky me I saved the video of the commercial as legal proof they did not keep their end of teh bargain and they tried to collect for over 5 years.  Pure evil shysters who are not honest should be fired asap!

  • No Name Ex-Collector

    I’ll add to #11 – Don’t ask for a manager, because you won’t get an actual manager – what you’ll get is another collector (or customer service rep, ALL phone centers are famous for this tactic) pretending to be a “manager,” who hopes that hearing the same crap the first person told you from a “manager”  spoken in an authoritative tone will satisfy you.