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Dealing with Debt Collectors


The debt collection process is very regulated – so know your rights, how debt collectors should behave but also having a better understanding of the process should help you in protecting yourself from getting into the situation in the first place.

Good debt collection agencies – or like Collection Consultancy Australia, Cash Flow Managers, do not bully, harrass or stand over you.  The best way to go about debt collection is to get your facts correct and in the right order.  Then negotiation works better than a “big stick” approach.

It is actually quite amusing to hear some of the requests as to how we should go about collecting debts.  Equally amusing when we ring someone up asking if we can collect their debts on their behalf and they tell us they have “guys with baseball bats – or guns, I am 6″5′ mate and I just tell them I am going to belt them – I just bash on their door at 4 am in the morning” – all illegal methods and to any smart debt avoider, they can use this in their favour if it goes to court later.

Best methods – protect yourself in the first instance.  Always read any contracts, make sure you can pay for what ever it is you are signing up for and if you do get into a situation, SPEAK to the entity that you owe the money to.  Burying your head in the sand just gets everybody frustrated.  It then makes it nearly impossible later when it is at a critical stage and you want “assistance” and the person who needs to trust you to negotiate through a process is the same one you have been avoiding and telling stories to for 4-6 months.

If someone is threatening you it is just not on.  Be careful to understand though that if a debt collector has gone through the processes and you have avoided contact, broken some promises and told some lies, being threatened with legal action is a legitimate part of the process and is probably not a threat – more of a promise.  So deal with your creditors and see what deal you can do that suits everyone.  Don’t over commit as there is no point telling someone you will pay $1,000 a month when you know that you will be lucky if everything goes right to be able to pay $500 back.


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