Credit Card Collection Practices

Who among us hasn’t at one time or another received a phone call from a creditor or a debt collection agency threatening dire consequences to every aspect of our life if we don’t pay what is owed to them. These calls can rattle even the toughest individuals, let alone worried and frightened people who are struggling to pay their bills on time.

There are many reasons consumers can’t meet their monthly bills. Sometimes it is because the main bread winner in the home has lost their job, often it is caused by an emergency medical situation. Whatever the reason, people who find themselves in financial trouble usually have legitimate excuses for why they are unable to pay some of their bills on time. Credit card companies are not interested in the reason behind your failure to pay; they are only interested in collecting the money that is owed to them.

Harassing Phone Calls

Practices used by collection agencies have come into question in recent days. Many have complained that debt collectors threaten them with police action, call at all hours of the day and night, and sometimes even call their job and explain the exact reason for their call to the person who has answered the phone. These are abusive practices that are not condoned by most legal experts and others in the industry. In fact, many of the debt collector’s practices are downright illegal. All that a debt collector is supposed to do is to inform you of the debt you owe and attempt to establish payment terms that are agreeable to both parties. Their responsibility lies in these two tasks and nothing more. If further action against you needs to be taken, it will be done so through legal channels and not by fear-inducing threats.

Debt Collection Agencies

The business of debt collection has boomed in the past few years. As consumer debt rises and financial crisis prevents many people from meeting their financial obligations, debt collectors are generating as much as £1.2 billion in revenue. That figure will grow as consumer debt rises. Lower income families are even using their credit card for necessities such as food and gas just to survive each month.

On a typical day, a debt collector will make approximately 20 calls per hour. They will reach approximately six debtors and of those six, at least two of them will make payment promises. An average household can expect at least 20 calls a day from a debt collector. Many times the person on the other end of the phone can issue many comments that are very insulting and embarrassing.

Although most debt collection agencies don’t stoop to such drastic measures and low practices, they still occur on a daily basis. Most collectors are paid according to a percentage of the payment that the borrower has agreed to pay. This can lead to intimidation by employees in the industry. They want to ensure that they receive a decent paycheck at the expense of your piece of mind. The debt collection industry frowns on these practices because it gives the entire industry a bad name.