Anyone who has been the target of a debt collector knows how relentless they are when they smell money. Non-stop calls, letters, voice mails, and high pressure persuasion are just some of the tactics they use to get you to pay up.
Fortunately, as a debtor, you have rights under the law and there are strict guidelines that debt collectors are required to follow. Never forget that you are in control of the situation. Without a legal judgment in their favor, there is nothing debt collectors can do to force you to pay.
Creating Doubts About Collectability
When dealing with debt collectors, it helps to understand the situation from their perspective. To a debt collector, a creditor is nothing more than a potential payout. Your value to a debt collector is equal to the amount of your debt multiplied by the probability that you’ll pay. This is known as the expected payout of a given debtor.
The less the total amount of your debt, and the less likely the collector perceives that you’ll pay, the lower your expected pay out will be. The lower your expected payout, the less appealing you are to debt collectors and the more likely they will leave you alone to pursue more lucrative collection opportunities.
Since the amount of your debt is likely already fixed, the best way to lower you expected payout is by creating the perception that your debt is not collectable. The easiest way to do this is by communicating with debt collectors, either over the phone or through the mail, that you are absolutely incapable of paying off your debt and do not intend to do so.
Although debt collectors might hassle you about this and accuse you of being able to pay off the debt, most will leave you alone eventually if you keep repeating that you absolutely cannot and will not pay.
Keeping Your Contact Information Private
Although this is more of a preventative measure, the best way to stop debt collectors from contacting you is to ensure that they never get your contact information in the first place. This may not be possible if that information is passed on by a creditor, but there are ways to conceal your information from most companies.
Here are some general rules that will keep your personal information out of the public eye:
- Never provide your social security number unless you absolutely have to.
- Use a P.O. box instead of providing your real address
- Keep your phone number unlisted and don’t post it anywhere online
- Ask why certain information is needed. If you don’t want to provide just skip that section of the form.
- Always assume that any information you provide will be available to anyone else who is willing to pay for it.
Knowing the Law
In extreme circumstances, debt collectors might even try embarrassing or intimidating tactics to persuade you to pay. Examples include mailings to your place of work or post card notices that publicize your debt problems. These tactics are entirely illegal, and if a debt collector has used them you may be entitled to legal damages. Going on the attack legally is also a great way to get debt collectors to back off.
Here is a list of some of the things debt collectors are NOT allowed to do. If you have experienced these tactics, then threatening the debt collector with legal action or a complaint to the FTC is likely to deter them.
Debt collectors MAY NOT:
- Make threats with the intent to intimidate
- Make idle threats
- Use profane language
- Publicize a debt
- Fail to disclose their identity
- Make multiple repeat contacts with the intent to harass or annoy
In addition, there are many more things debt collectors are legally prohibited from doing. If you think any of these might apply to you we suggest researching the Fair Debt Collection Act on the FTC website.
