Many people have the question: what do I do when a debt collector calls? It can be a worry for many as money isn’t something people talk about. And even less so when there are money troubles.
Ultimately there are many ways a debt collector can get in touch with you. Which is why many people worry about what to do when a debt collector calls. Keep in mind that there is a difference between a bailiff and a debt collector.
A bailiff is an enforcement agent, and can work on behalf of private companies or local councils. They have legal powers to collect debts. This is a very important distinction.
A debt collection agency has either been instructed by a business, or they have bought the debt from a business. These debts can range from loans, credit card debts, missed invoice repayments, and more.
So, now we can take a relaxing breath and let the worries fall away; let’s look at what to do when a debt collector calls.
What are the first steps in debt collection?
The first instance happens once a business or person has instructed a debt collection agency to contact the debtor.
Debt collection agencies do not force their way into premises or take very aggressive forms of contact. The first thing a debt collection agency will do is make contact with the debtor. If a letter of non payment hasn’t been sent this may be the first thing you will see.
Debt collection agencies should always inform you who they are acting on behalf of and what the amount of debt is due. Debt collection agencies work with both the debtor and the company to find the best solution for all involved.
Types of contact a debt collection agency will make
There are three types of contact that a debt collector will make in the early stages of processing the debt.
Letter: this will be a formal letter to the debtor explaining who they are working on behalf of and why they are contacting you.
A letter is usually the first port of call for anyone who is working to retrieve unpaid invoices or debts.
Email: An email is another way in which a debt collector will try and reach you. They will again reiterate the reasons why they are contacting you and provide further information on what you should do. This will either be to contact them, pay the debt in full, or any other terms set out.
Phone call: Some people may receive a phone call from a debt collector. Typically this happens when other forms of contact have been unsuccessful. Some people may believe that the emails or letters they are receiving could be potential scams or false documents. A phone call allows the debt collector to speak directly with the debtor where further steps can be taken.
If you are being contacted by a debt collection agency the best thing to do is respond. Once you have spoken to them you are more likely to come to a solution which works for you.
Can a debt collector visit my premises?
In short, yes. A debt collector can visit your premises if they have been unsuccessful in other attempts of contact. However, personal visits are usually less common than people think.
Once contact has been made it will then move onto finalising repayment options; and working with the debtor to ensure the payments have been made in a way that is affordable.
What is key to remember is that debt collectors are human too, many who work in the industry want to help people in any way they can. There are many reasons why people end up in debt, and debt collection agencies like My Debt Recovery understand the human behind the debt. That is why we work with you to ensure that you are able to pay off your debts with as little stress as possible.
Contact our team today for more information on debt collection.