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A debt collector will use all sorts of tactics to get debtors to pay the debt in full or at least part of the debt. Some debt collector tactics have been known to be unethical, yet these debt collector tactics continue to be used by many debt collection agents.

Below are some popular debt collector tactics that debt collectors will use against consumers. If you owe money and a debt collector is calling about it, beware and be prepared for the following debt collector tactics.

Debt Collector Tactic #1: Bank or credit card information

The debt collector will ask for your bank account information or credit card information. The debt collector may start by asking all sorts of other information such as your name, social security number, etc. But, that long list of things they want from you will include the information on your bank account or credit card. Many debt collectors have been known to take more than you authorize them from your credit card or bank account. You can dispute the amount afterward with the bank or credit card but 99% of the time, the money is long gone and you won’t get it back. So, do not give your bank account information or credit card information to a debt collector when asked. In fact, do not give any information to a debt collector at all.

Debt Collector Tactic #2: Check by phone

Many debt collectors know that if leave it up to you, you will not pay them and they depend on you for their salary and commission, so many of them will try to convince you to do a ‘check by phone’. However, if you do, they probably will take more money off your bank account than you expect them to. And, you will not see that money again. Some debt collectors will even try to be frank and honest with you but most of them are just acting so that you will pay them.

Debt Collector Tactic #3: Western Union Money Transfer

Western Union transfers have become more and more popular among debt collectors. A debt collector will outline why transferring money via Western Union will halt the legal action that is about to be upon you or will delay any lawsuits. However, they are just threats most of the time. If you are willing to pay towards your debt, do not transfer money by Western Union.

Debt Collector Tactic #4: Lie

Most debt collectors make money only if you pay your debt off. Sometimes, they are so desperate that they will do anything to force you to pay some of your debts. They would promise things that would never happen, they would lie, and they would misrepresent themselves or your situation. Don’t trust anything a debt collector says. Usually, if it is not in writing, you can never trust. If it is in writing, it might still be misrepresented.

Since most small debt collectors (not supervisors and managers) lie to debtors to threaten them to pay some of the debts owed, you should always record your conversation with any debt collectors. Most debt collectors don’t want to give you their name so always ask them for their name and identification number if there is one.

Debt Collector Tactic #5: Misrepresent their power or authority

Threats usually work on some debtors so debt collectors usually try threatening you in some ways such as lawsuits, foreclosures, lien against your properties, or Wage Garnishment. However, note that debt collectors do not have power to do any of these so if they claim that they do, do not trust them. If you do not act as if you care or feel threatened, they will move on to the next debtor who they can threaten to do something like paying off their debts.

Debt Collector Tactic #6: Use the Credit Issue to threaten

Debt collectors know that most people care about their credit so, in addition to lying, they would bring the subject of credit into play. Debt Collectors may promise that if you pay off your debt now, the account will be removed from your credit giving your credit score a boost again. This is simply not true. Only creditors can report things to credit bureaus. Paying a debt collector will not get your account removed from your credit report. Further more, paying debt collectors say that your debt is legitimate and that it is active which might be worse for your credit.

Any unethical behaviours and unfair debt collector tactics should be reported to your Attorney General’s office or the FTC. The more people who report about a certain debt collector or collection agency, the less likely they will use unfair debt collector tactics on other debtors and the less likely other debt collection companies will use similar debt collector tactics. Basically, you will be contributing to making better people out of debt collectors.

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