Francis Mwendo |
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Francis Mwendo
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Debt Collection - Facts vs. ForceFrancis Mwendo
February 28, 2007
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The title ‘debt collector’ is self-explanatory and clearly states
what such a person does. If you owe money to a lender and there has
been a delay in payments over the past few months the lender may choose
to either use their in-house service or employ a specialized debt
collection service provider. If it is a third party i.e. a
specialized collection agency, they usually purchase your debts for
less than you owe from your lender and then the debt becomes theirs.
Therefore, they then have vested interests in settling the same. Having
a debt collector knocking on your door or receiving his call a number
of times a day can be distressing. There is however a way out to the
problem. Put in one word it is ‘awareness’. An awareness of your rights
and safeguards. This will control the debt collectors and not the other
way around. Debt collectors while doing their job may tilt
towards being forceful and intimidating. As a defaulting borrower, you
are already on a back foot. However, you can still stand firm and not
give in to their demands. Here’s how: The job of a debt
collector is to advise you that you owe some monies. He cannot threaten
abuse or intimidate you by threats of harm or police action. A
debt collector may establish contact with the borrower in person, via
sealed mail, telephone, fax or a telegram. He can not use a postcard as
it can be read by anyone. He cannot also call before 8 a.m. and after 9
p.m., unless you agree on a time. The first call from the debt
collection agency has to be followed up by a written statement clearly
stating your creditor’s name, the actual amount owed and what action he
can take if you do not acknowledge the money owed. This written letter
must be accurate and have no false information. Also note, the
debt collector cannot contact your relatives, friends, neighbors etc
unless to obtain your contact information. In such circumstances he
cannot inform them that you are in debt. You are entitled to your
privacy even if you are in default. Remember you cannot and
should not force the debt collectors to coerce you into making payments
as per their demands. A number of collection agencies work on the
premise that the best way to get the payment is to make sure that it
becomes number one on your priority list. While you know you owe the
monies, you have to ensure that you clearly prioritize your finances.
If there is a greater and pressing need for your money, like for
medicines or food then you must allocate the funds accordingly. You
can choose to directly negotiate with the debt collector or appoint an
attorney instead. If you deal directly, do not feel compelled to offer
private information that can be misused to force payments from you.
E.g. where you work, your personal account information and the like. Always
seek written communication from the debt collector instead of phone
conversations. This will put pressure on the collector to be polite and
accurate in his dealings with you. All agreed terms and conditions
would also be clearly outlined. The original amount owed along with any
interests and fees, should also be clearly mentioned. It is also a good
idea to tape your phone conversations after having explicitly informed
the collector when he calls that the same is being recorded. If
your debt collector continues with his forceful methods you have a
right to redress. You can complain to the concerned authorities within
your jurisdiction and obtain relief. The best way to counter force is through knowing the facts and standing firm on them.
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