Thursday, August 28, 2014

"Friendly" Debt Collectors

A story is recently making the rounds on Yahoo! Finance regarding "new" collection agency tactics that focus on "customer service" and "friendliness."

According to reports published by the Association of Credit and Collection Professionals International (ACAI), the debt collection industry took in approximately $52 billion in revenue in 2013, compared $55 billion in 2010.  That is "billions" with a "B:" i.e., a whole lot of money.

Though the industry may be attempting to rebrand itself based on a new-found commitment to "customer service," it is important to remember that debt collectors have one ultimate objective in mind: to get money from consumers. 

Regardless of how friendly the letters may be, or how nice someone may speak to a consumer on the phone, debt collectors may still be hurting a person's credit, and they may be preparing to file a lawsuit against them.  Moreover, if they choose not to sue, they may decide to sell the debt off to another collector who may not care so much about "friendliness."

Consumers would do well to remember that debt collectors are still required to play by the rules provided by the FDCPA, including: warning you that they are a debt collector attempting to collect a debt; debt validation letters; and refraining from unfair or abusive behavior.  If a debt collector fails to do these things, even if they have a smile on their face, it is still a violation of the law.