Identifying Bad Debt Collectors and How to Deal With Them

Identifying Bad Debt Collectors and How to Deal With Them

The term debt collectors may not always invoke the best of receptions to some people. Even though debt collecting is a legal profession in the financial world, the term itself may sound dangerous or just merely dreadful. This conception stems from some people’s bad experiences in dealing with these collectors and the way the collectors “act” in those times. Debt collectors are usually stereotyped as impolite, cold-blooded, callous and many other unsavoury personalities in their jobs. However, what if these stereotypes are right in some bad debt collectors?

As previously mentioned, debt collecting is an actual legal profession in the financing world. The existence of debt collectors is necessary to ensure that customers from financial institutions will uphold and repay the debts they have from these companies. Moreover, since debt collectors are part of these institutions, they need to follow regulations in collecting a mortgage as much as possible. These regulations will manage debt collectors from going overboard when dealing with delinquent customers. Even though some customers can be challenging to deal with, debt collectors are not above the law, and they need to do lawful debt collecting as part of their job description.

However, this is not the case with some debt collectors. Legally speaking, debt collectors who work for financial institutions are people who have been selected and screened specially for this assignment. This serves as a selection method to ensure that only trusted people who can become debt collectors. Unfortunately, some debt collectors are abusing their position for their gain. Although debt collectors may attain some profit share from the debt repayment legally, some of them are deliberately extorting the debtors for some extra cash. This is exemplified in debt collectors taking away the debtors’ valuables without their consent.

This is particularly problematic as taking the debtors’ valuables forcefully are not equal with the supposed method of the debts’ payment. Although these valuables may have the same financial value with the actual money, they have different status when compared to cash and thus cannot be used as a substitute for money. Therefore, taking away these valuables lies beyond the authorities the debt collectors have, and it is illegal. This action is equally criminal as berating and threatening the debtors through verbal and non-verbal means, which are the opposite of the debt collectors’ existing regulations.

Since financial institutions still rely on debt collectors to receive due payments from debtors, the job description will vary based on their employers. Freelance debt collectors, for instance, are those who devote their service and time to collect a debt under individual employers. They do not have a binding work contract much like their counterparts from financing companies and thus are not under a strict set of regulations. In doing their jobs, freelance debt collectors usually rely on their vehicles to meet the debtors and their communication skills in dealing with them.

On the other hand, leasing debt collectors’ job description is more rigid and organized when compared to their freelance counterparts. Multifinance companies are companies with records of integrity and trust, and thus they need to comply with the existing laws to work. This has significant effects on the way they manage debt collectors under their wings. Since the working environment in these companies is formal, the collectors will need proper clearance and permission to do their tasks. They are not allowed to threat and berate the debtors by any means possible to ensure the customers’ willingness to deal with them.

Since we have learned the existence of irresponsible debt collectors, what can we do to deal with them? Although the service of debt collectors from leasing companies are not used that much in these months, these lessons may help all of us in case we have to deal with one of them. Firstly, it is within the debtors’ rights to complain about the debt collectors’ coercive ways to pay the debts. Even though the collectors have the authority to push the debtors into paying the debts, they still have to follow their employers’ regulations to ensure a lawful discussion between both parties.

Secondly, debtors can file complaints to existing authoritative institutions if the financial institutions are not responding. In cases where financial institutions are trying to protect their debt collectors’ integrity, financial service authority (FSA) is an alternative for the debtors. Because FSA serves as the nationally recognized authority institution in financial matters, all existing financing companies need to abide by their laws. Through either online complaints or directly coming to the office, FSA will provide a way for the debtors to deal with these debt collectors.  

Finally, either the customers or their companies can deal with bad debt collectors. No bad debt collectors are necessarily above the law, so the debtors should have no fear in dealing with these collectors. Customers also have their rights to have the best service from these companies, so it is logical for them to complain whenever they feel uncomfortable in using the companies’ service. Moreover, dealing with bad debt collectors swiftly will decrease possible handicaps of letting them away in their unlawful deeds.

With AdIns Mobile answer the challenge to effectively control, manage, and monitor your field collector thoroughly in the collection activity by equipping your collector with Mobile Collection. This debt collector application will limit their cash on hand, integrated bluetooth receipt printer, and see all of the collection activities through a monitoring dashboard.

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Published date :

03 December 2020