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Author
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Topic: things you should know if you have debt...
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AbsintheDragonfly
Moderator Posts: 1009
From: Gaia
Registered: Apr 2010
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posted July 27, 2010 07:32 PM
 
Winks,Seriously. That was one where I was in hysterics, after I got hung up on. IP: Logged |
bunnies
Knowflake Posts: 213
From: u.k
Registered: Apr 2009
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posted July 28, 2010 04:20 AM
I have no idea what the methods are like in the States but I was a debt collector/car repossession agent for 7 years and never did we use any of those methods.
In fact in 7 years we only had two unpleasant incidences.
Mostly, because we were respectful and understanding people were almost relieved that we would sort situations out for them.But before you get on your high horses about debt collecting there are things you should consider. First of all when a car is repossessed it has to go through three stages.It can not just get snatched from your possession as most people seem to think.
They have to have missed three payments.
It then goes to what is called "voluntary surrender"
That means you have a nice chat with them (you have to visit) ask them if they can pay the arrears, if they can great, if they can't would they consider giving the car back now.
There is absolutely no point in getting forceful.It is completely counter productive.
The idea is to "persuade" the client that if they can't afford it, in order to avoid CCJ's (county court judgements)it would be better all round if they gave the car back.
At this point the finance companies are happy. They have not lost too much money, they can auction the car and they have not had to pay agents too much money to track people down.
A lot of them are reasonable and write off the debt. At this point depending on the response, you know what you are dealing with. This is the point were you get people to realise that sadly they can't afford the Range Rover Vogue they have parked in the driveway....and the wife's car aswell.
Some sensibly realise this and give you the keys.
Some people get embarrassed so we would let them drive around the corner before we took possession.
The second lot will go for the
"Eff off you're not having it"
This can sometimes be a knee jerk reaction
Again you have to calmly explain what this would mean legally.
Some calm down after 10 mins and realise that this will get them nothing but legal bills others slam the door.
If they slam the door it then goes to repossession (this takes months sometimes) We have to visit again (at this point they have usually "hid" it, sold it on or have moved)
We would find it. People are unbelievably predictable.
But...you can't take a car at that stage either off the driveway or if you have to damage it to retrieve it.
So unless it was parked in the road we then would have to get a county court order....this again takes months....costs a fortune in agents and legal fees...by which time the finance company are ****** off. At this point people have usually trashed the car (because they know it's going eventually) which means that now, they are going to owe more as it wouldn't get a good price at auction. But the most glaring thing in the 7 years of doing this was how many people think they can just get things for free.
They can't seem to grasp that by borrowing x amount from whoever and not paying it back they are in essence stealing.
You might not like banks or financial institutions or the way they do business but YOU entered into an agreement with them. You decided that you couldn't wait till you had saved up enough money to pay for something you wanted, but have to have it NOW, then get all bent out of shape because the bank says
"No you can't just pay 3 grand off a 32k car and then decide you don't want to pay any more" Why should people be able to do this?
Why should you have a free car/whatever/credit card bills and not pay money back that you owe?
Other people do. What's different about you? I learned a huge amount about human nature doing that job.
Essentially, if you treat people with respect even if they are vile to you for the first ten minutes, remarkably 99% will respond in a positive way. Believe it or not, a large part of the time we were just a sympathetic ear. That human nature is predictable and that people always think they're not.
They were always surprised when we found cars they had "hid" because it was usually in one of three places. That a large majority of people are decent.
That sadly life does deal bad cards but hitting out at the wrong target is not the answer. That if you buy stuff
a. Make sure you can afford it, even if you lose your job or the spouse buggers off.
b.That sometimes you can't have everything you want when you want it.
c. Pay for the things you buy.Nothing is free, even if the novelty of the thing you bought has worn off... You still gotta pay.... Stand well back bunnies  IP: Logged |
charmainec
Moderator Posts: 517
From: on the other side of the rainbow
Registered: Apr 2009
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posted July 28, 2010 08:33 AM
My friend worked for a collecting agency.She said they were told to tell the people what amounts to pay when infact the person that owes money can pay back whatever amount they can afford.The debt collectors make the owing parties believe that there is a certain minimum amount allowed and since many dont know their rights they believe it when infact it's not true.They are also not allowed to harass or threaten people owing money yet many do.------------------
quote:
"What lies behind us and what lies before us are tiny matters compared to what lies with in us."
-- Ralph Waldo Emerson
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katatonic
Knowflake Posts: 4594
From:
Registered: Apr 2009
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posted July 28, 2010 12:08 PM
bunnies thanks for the input. as i pointed out my sister was a collector for many years. she never gave people a hard time either and in fact it was she who told me it is AGAINST THE LAW to do so. however it does go on and people are misled as charm just said in an attempt to get as much money as possible out of scaring people who don't know their rights. that is all this thread was about really.i have had people at the irs do the same thing. they have their "objective" and are trained NOT to divulge the taxpayer's REAL rights (unless DIRECTLY asked) but to procure a payment plan that fits a time schedule of the IRS liking, not what is actually stated in law...however if you DO know your rights it makes it a lot easier to discuss things with collectors in a rational way! IP: Logged |
WinkAway
Moderator Posts: 861
From: here, there & everywhere
Registered: Apr 2009
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posted July 28, 2010 02:00 PM
wow kat.. that's seriously messed up with the IRS. Figures they would be like that since the gov't is corrupt.bunnies, that's why I wouldn't ever work in collections ever again. People are rude. I just have a beef with one that calls... without exageration.. about 7-10 times a day. I just quit picking up the phone when they call because I will talk to one person about making a payment, then they keep calling and keep calling. And I believe it's against the law to call a person so many times a day. I remember them telling us that, but can't remember how many times before they are pushing it. It's like "don't you people believe in notating the accounts when you call someone?!" UGG! Don't get me going lol. ------------------
"Bring me all of your dreams, you dreamer. Bring me all your heart melodies, that I may wrap them in a blue cloud-cloth. Away from the too-rough fingers Of the world." - Langston Hughes IP: Logged |
BearsArcher
Knowflake Posts: 58
From: Arizona with Bear the Leo
Registered: Apr 2010
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posted July 28, 2010 02:49 PM
Thank you for posting this. I haven't had any issues with debt collectors but did experience the problems because of my husband's ex wife. She had taken out credit cards under his name over 10 years ago and also put her student loans under his name, SSN and forged his signature. We are still fighting that with DOE but don't expect anything back (we've already paid $8000) because she doesn't, nor ever has, worked a day in her life. Can't get blood from a stone. However, a couple of collectors called my mother's house and left threatening messages as well as informed her of the debt and asked her to pay for it. I got ahold of them and let them know what they were doing was illegal (threatening someone as well as discussing personal information to a third party). One ahole told me he would destroy my husband's military career and garnish his wages. I asked him to send me proof of the debt, when it was incurred, how much was owed and original documentation. He could not produce any information other than an amount and I told him I wouldn't pay because he couldn't prove anything. I then went to JAG and ACS and found out what he was doing was illegal. Long story short. He never called again and Bear hasn't had any affect on his credit or service. I understand they have a job to do, my only issue is the way some go about doing it. IP: Logged |
bunnies
Knowflake Posts: 213
From: u.k
Registered: Apr 2009
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posted July 28, 2010 04:49 PM
If anyone rings again threatening you just tell them that you have recorded the call and that what they were doing was a criminal offence.
Tell them you will only speak to someone who is prepared to discuss your debt in a constructive way and that would obviously be their superior!
It is a ridiculous way to do business. As I said, it is totally counter productive to get the persons back up.
I've never known anyone respond in a positive way to threats.
It's inexperienced collectors who behave like this.
The idea is to get people to agree to make a regular payment.
Of course they are going to offer to pay off 10,000 at 3 quid a week.
At which point I used to say sweetly
"Well I think you and I both realise that that is a little too low. Shall we find a point were you think you can manage it and the finance company will be happy?
Yes? Does that sound reasonable?Nine times out of ten they relax and I would ask them to suggest a realistic figure and we jig it about a bit.
And then they become relieved because the debt is now managed and it stops becoming something they are fleeing from and turns into something they have control over.
Don't be bullied by W@nkers IP: Logged |
AbsintheDragonfly
Moderator Posts: 1009
From: Gaia
Registered: Apr 2010
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posted July 29, 2010 10:13 AM
It was the supervisor who made me cry! They were telling me that if I didn't agree to their payment amount they were going to take us to court to garnish husband's paycheck. Oh well. I fixed their little red wagon :lauging: I just talked to the hospital, and they took care of it.This bill was from the time between his medicaid and insurance kicking in, and he'd broken his ankle. How's that for Murphey's Law??? IP: Logged |
WinkAway
Moderator Posts: 861
From: here, there & everywhere
Registered: Apr 2009
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posted July 29, 2010 01:35 PM
yikes Abs..
I would cry too.. I hate people yelling at me.
With that collector that calls 7-10 times a day, I ignore them now because if they can't take notes on their calls, than I'm not responding to them. It's like your kid saying mom, mom, mom, mom.. you get tired of it!! lol.
My daughter has even picked up the phone and screamed into it then hangs up... gotta luv her.IP: Logged |
katatonic
Knowflake Posts: 4594
From:
Registered: Apr 2009
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posted July 29, 2010 01:51 PM
i remember when i was running behind on my car payments, if i answered them and explained the sitch they would say they were making notes of it but that "protocol" insisted they call daily until the payment was received...i suggested that if they were a little more reasonable about the chasing down of cooperative if broke clients that it would eliminate a ton of "cost" that made my payments so hard to make in the first place...the car was eventually paid off and they received a good deal more because i was slow for a year (interest and other charges) than if i had paid it off. unfortunately for them they had to fork over a large portion of that profit to people who chased me to no effect...can't get blood from stone and i was paying as fast as i could already!!as to people expecting things for free i don't think most suffer from that illness. i had to buy that car on time - not enough cash lying around - and the interest rate was diabolical because of my financial situation. (i was a credit GHOST because i had been out of the country for years!) not sure why they don't understand that charging poor people (and people who don't have a credit score because they have been buying things outright!!) MORE just makes it harder for them to pay...and more likely to default. IP: Logged |
Musette
Knowflake Posts: 305
From:
Registered: May 2009
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posted July 29, 2010 05:30 PM
quote:
not sure why they don't understand that charging poor people (and people who don't have a credit score because they have been buying things outright!!) MORE just makes it harder for them to pay...and more likely to default.
This x 1,000. I don't understand it, either. It seems pretty simple that if people are extended better credit terms, interest rates, and payment plans they are far more likely to honor their debt. I'm curious as to what the default rate is on all those "easy credit/no credit" debts with high interest and impossible payments, and I bet it's a pretty high rate. Why not just give people reasonable repayments and terms to begin with? To start anyone out with outrageous terms just means setting them up for failure, in my opinion. BearsArcher, that's so infuriating that you had to pay out such a large sum that isn't even your own debt, but thank goodness you are smart enough to ask for proof and visit JAG, or else you'd have paid a lot more money to those thugs. quote:
I've never known anyone respond in a positive way to threats.
True, not only regarding debts but also any other area. IP: Logged |
Lindaland
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