Syracuse (WSYR-TV) - It's not unusual for bad debt collectors to get busted for lying and using threats to get people to pay up, but those collectors represent only a very small fraction of an industry that otherwise does pretty well with the Better Business Bureau and other consumer watch-dog groups.
So, what should you know when you're dealing with a legitimate collector?
Mark Davitt, the president of Conserve, a national collection company based just outside of Rochester, finds the antics of some of his company's competitors shameful. "Those people give a bad name to our industry," he said. "I'm embarrassed for everyone. There's no excuse for bad actors."
The process always starts out very simple, if you owe, you get a letter; If you ignore it, the phone calls will start. Davitt admits, more often than not, people aren't happy to hear from his employees. Davitt said esponses range from "words you'll only hear in an R-rated movie to sometimes tearful responses but they're usually rooted in embarrassment."
Before a new councilor even picks up a phone at Conserve, they spend a week learning all the basics and book work on debt collection.
Training is critical to remain up to speed not only on regulatory changes but on economic conditions that affect customers. If you get a collection call here's what you need to know:
- If you do not believe the debt belongs to you, send a dispute letter - certified mail - to the collector. The collector has to stop contacting you until it can prove, in writing, the debt is legitimate.
- If you owe and you just can't afford to pay, tell the collector. The agency should work with you to get it deferred or take smaller payments until you can afford more.
- In New York State, a bad debt can only affect your credit for eight years but that doesn't mean it gets wiped clean.
The collector who calls you looking for payment should know all these rules and be willing to help you settle your debt but it won't clear up your credit right away. "If people work with us, things will get better in the future--that takes time, that's the frustrating thing," Davitt said.
Debt collectors, by law, are allowed to call you Monday through Sunday anytime from 8 a.m. to 9 p.m.
The Collection Company Trade Organization has a website with much more information.
