When speaking with a debtor, many debt collectors (especially those who are inexperienced) will utilize a script that contains a pre-written introduction, request for payment, and has various branches to follow, depending on how the debtor responds. If a particular debtor is taking up too much time, without making arrangements to pay, the collector will be inclined to move on to other accounts. Any information that the debtor gives about his/her financial situation (e.g. income or current employment, etc.) will be noted on the file’s record and used to estimate the probability of a recovery, the advantage of legal action, and so forth.
So what can a debt collections company do? If they are working the debt for one hundred percent commission, they will send some more demand letters and make more telephone calls. Also, they can mark the item as negative with the credit bureaus. If they are working on contingency, they can recommend filing suit, or if they own the account, they can file suit. However, the actual chances or intentions of this are often significantly less than they try to suggest to the debtor.
Collection companies can not legally seize a debtor’s assets, bank accounts, or garnish wages unless there has already been a successful lawsuit with a judgment awarded in their favor. Collection companies can not legally make any kind of public announcements or disclosures concerning the debt, except to the credit bureaus.
Collection companies can not legally get a debtor fired from his/her job. Collection companies can not legally engage in any type of physical violence or threats thereof.
Why does the debtor pay? Many times the reasons include fear, guilt, intimidation, and a lack of understanding of the legal remedies available. Plus it is the right thing to do. The debtor may feel guilty and ashamed of being a “deadbeat,” and may perceive a judgment of his/her value as a person. The debtor may have greatly exaggerated ideas about what collectors are (legally) capable of doing, and may have outdated stereotypes in mind.
The debtor might feel overwhelmed by the relentless and aggressive demands, from agencies that might appear to be very powerful. S/he may take it personally, and assume that great individual attention is being given to this particular collection file. Customers being contacted by collection companies are usually in serious financial distress, and under emotional pressure about the general situation, so they may be confused and defenseless.
Rapid Recovery Solution is a medical debt collection company.