Debt collectors are often referred to as “creditors” are not the best people in the world to deal with to say the least. Debt collectors more often than not put fear into the minds of their victims by sending demand notices and harassing phone calls and even go as far as suing their debtors. There are of course debt collection companies that trade fairly and I am not going to brand a single company with one hammer – so to say.
By eliminating the Debt collection companies and dealing directly with the creditor. The commission, on the money they collect is going to be anywhere from 25% all the way up to 80% depending on the type and age of the debt. If they were getting paid a commission of 60%, and you paid the $6637.95, the creditor would receive $2,655.18 and the Debt collection companies would get paid $3982.77!
How can they respect someone they are trying to swindle for hundreds or sometimes thousands of dollars? That is a question that many Americans are asking them selves about LVNV funding and it is connections of debt collection.
In California they have not gone there yet as far as I have seen. Collections are still a responsibility of the creditor once a judgment for the debt has been issued by the court. We in California are thus luckier than many other states. But creditors can demand that debtors attend a “debtor’s exam” and the creditors can have a court issue the order. Failure to attend one of these can result in an arrest warrant being issued and can result in a debtor being put in jail. So be careful if a debtor’s exam is ordered if you have unpaid debts in California. It can possibly be used by creditors as a back door way of getting you in jail for purely private debts.
The original creditor does this to wash its hands of the bad debt, and the collection agency likes this exchange because it is able to purchase these delinquent accounts at a substantial discount, often for only a few pennies on the dollar. What does this have to do with you going to court on one of these cases? Read on.
Keep records of your correspondence with your debt collector. You should keep all receipts, debt collection letters, bills and other documents for your future reference. When speaking with a debt collector over the phone, jot down the name of the person you’re speaking with and the date when the conversation took place. You can also give notice that you’ll be recording the phone call for your reference.
Remember that the more attention you pay to getting out of debt the faster it will happen. If you ignore the debt you have and pretend it will just go away one day then you will probably always have a problem. The best solution is to do something about the debt you have.