Hiring a debt collector is something that your business might be needing right now. Every creditor only wants to get their money back as soon as possible. They also want to help other people who are in need of money, but there are others who make it really hard to collect what they owe you. This is where Debt Collectors can come in and help.
What Debt Collectors CAN’T Do
However, you need to understand that there are certain limitations of what they can do for you when pursuing your debtors’ payment. Here’s what your debt collectors can’t do:
- Visit The Debtors’ Workplace. Visiting your debtors’ workplace is the best time to pursue them for their payment. But no matter how much you want to get your money back, you have to understand that it is illegal for a debt collector to come to the debtors’ workplace and collect the payment. It is illegal to publicize their debts and also by showing up at their job to collect what they owe you.
- When choosing a debt collector, you should be mindful of any complaints against them. Harassment can come in many forms. Some of the most common instances where the debt collector harasses a debtor are when they do repeated calls, show threats of violence, publishing information about the debtor, and also using abusive and obscene languages. All of these acts are considered illegal under the debt collection practices act.
- Arrest An Individual For Debt. The borrower can never be arrested for a debt that they owe you. But if the debt collector will sue the debtor because of the money they owe you and they fail to show up in court, then he or she will automatically lose by default and will be required to pay. If the debtor will choose to not follow the court order, an arrest warrant may be pursued.
- What Debt Collectors CAN Do. Now that you know what your debt collectors cannot do on your behalf when collecting payment from a delinquent borrower, it is time for you to be aware of what they can do for you instead.
- Pursue Payment For Expired Debt. Credit cards and medical bills are considered unsecured debts and they have a statute of limitations. So if the debt is already ‘expired’ the creditor will not be able to sue the debtor for payment. Still, he or she will owe you the money and your debt collector can seek payment for these financial obligations.
- Pressure Debtors To Make Payment. Collectors cannot harass or threaten and individual to pay, but they can still pressure them to make a payment. This can include daily calls (not considered as repeated or harassing calls), send letters frequently, or discuss lawsuits for the payments. Collectors can do this as long as they stay within the bounds of the law.
When it comes to choosing a debt collection agency, your collector should know his or her limits when pursuing the payment from your debtor. This is not an easy job so the debt collector should be highly qualified and experienced in dealing with these difficult situations on your behalf.