When you get a call from a debt collector it is because you have a bill that has gone unpaid for several months. If you have ignored the letters from the company that you owe money to, and have made no attempts to contact them or endeavor to pay the bills, you are considered a bad debt.

Debt collection agencies are hired by a company to collect the money owed to them. Debt collectors are more aggressive in their efforts, as they know that you have in all likelihood been avoiding any contact with the company, and are likely to ignore their efforts as well. To a debt collector, you are not a customer. You are now called a debtor. This is not something to be proud of, or sought after, and you should try to remain a paying customer before it gets to this stage.

Credit reporting agencies often receive their information from debt collection agencies. These agencies keep track of your credit record. It is the main indicator on how responsible you are with money. Car dealers, mortgage companies, and credit card issuers look at credit reports to determine if you will be a good customer – that is, one who pays their bills.

Generally, there is no escaping debt collectors, who use a number of methods to find you – even if you move house. As annoying as it may be, debt collectors will use any means to find you, no matter how humiliating it may be for you, even calling your employer or canvassing the neighborhood to find you and do what they have been hired to do. Many collection agencies only earn their fee when they have collected money from the debtor, so it is in their interest to do everything possible to find you and convince you to pay the debt. One of the reasons they are so determined to find you is that they only get paid for their services once you have paid off the debt.

Because there are Federal regulations governing the debt collection industry, their treatment of you should follow a particular code or guideline, although of course there are some agencies who will flaunt these regulations. If there is some confusion about the debt, either the amount or whether it actually is your debt, you should contact the company immediately. The debt collectors may be able to assist with sorting this type of situation out with you. In order to protect your rights, make copies of all communication between the three parties, and keep notes on telephone calls and meetings wherever possible.

One of the tenets of the federal law governing the debt collection industry is that agencies may not use threatening tactics to get you to pay the debt. Report this violation of the Fair Debt Collection Practices Act to your local Better Business Bureau immediately.

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