What is a Debt Collection Agency?
Dealing with Debt Collection Agencies
What is a debt collection agency? A debt collection agency, also called a third-party collector, is an organization that specializes in collecting debts from consumers. This may be for unpaid medical bills or outstanding credit card balances. Debt collectors typically work on behalf of the original creditor (i.e., the organization that gave you the loan).
A debt collector’s job can vary depending on who they are working for and what type of information they have about you as a consumer. If it’s your bank asking them to contact you about an overdue account, then their goal will likely be to get your payment right away so that late fees aren’t incurred – but if it’s another company like a health care provider seeking repayment from you, then their goal may be to work out some kind of payment plan that you can afford.
Debt collectors are regulated by the FTC – Federal Trade Commission and agencies like this will usually have clear information about their policies in place, including when they’re entitled to contact you (usually not before eight a.m.), how often they’ll call, and what means of communication they’ll use. They may also tell you upfront who it is that’s trying to reach you so that if it isn’t someone you’ve been expecting then there won’t be any confusion or unnecessary anxiety on your end as well. Debt collectors should never threaten violence or arrest unless they actually intend those things for people who refuse to pay them back; unfortunately there are unscrupulous individuals.
Hot to deal with debt collecting agencies? When you owe somebody money and they’re trying to get it back, the best thing for both of you is a mutually agreed upon settlement. That means if you can’t pay what’s owed then be willing to work out something that satisfies their needs while also respecting your own financial constraints. If these calls are keeping you from being able to sleep or affecting your performance in any other way at work, though – even when it seems like there might not be anything inherently wrong with them – don’t hesitate to contact law enforcement about this harassment.