Wednesday, February 25, 2009

Techniques Debt Collectors or Bill Collectors will use to get you to pay:

Debt collectors or bill collectors are, in effect, salesmen. Many are paid a commission based on the number of debts they are able to collect. They will strongly urge you to send your check to them immediately, via FedEx or Express Mail, which will add another $12 to the debt you already owe.

Debt collectors or bill collectors may try to get you to give them a credit card number to charge the monthly payments. You don't want to use credit to pay off credit. You will never get out of debt.

They may tell you to pay with Telecheck, and that all you need to do is give them your checking account number and routing number. The payments will be deducted automatically from your checking account. If there is not enough money in your checking account, you will be charged overdraft charges by your bank, so you will have even less money to pay your creditors.

Your best bet is to mail the check to the debt collector or bill collector via certified mail, so that you have a record of receipt.

If the debt collector or bill collector decides to sue you and gets a judgment, they may garnish up to 25% of your wages. The debt collector or bill collector may try to seize your bank account. If you own property, the debt collector or bill collector may record a lien against your property, which will have to be paid when the property is sold.

Some debt collectors or bill collectors may use deceptive practices, such as telling you that they will settle for a lesser amount and then when you send in the check, send the remainder of your debt to another debt collector to collect the difference. Other debt collectors or bill collectors have been known to cross out the words "Paid in Full" on the check and then deposit the check. This practice is illegal in many states, such as Arkansas, Colorado, Connecticut, Georgia, Kansas, Louisiana, Maine, Michigan, Nebraska, New Jersey, North Carolina, Oregon, Pennsylvania, Texas, Utah, Vermont, Virginia, Washington, and Wyoming.

Know your rights. Contact us.