Archive for October, 2008

A Word For Debt Collectors

October 5, 2008

Preparing part of the step by step book I am hoping to have ready for you very soon I had to think about debt collectors.

And, in a way, I do have some sympathy for them. And moreso perhaps for their staffs.

There are, after all, one or two areas where their activities are useful. These are where the people who they are chasing really are out to cheat and maybe involved in scams of one sort or another. And they seem to have an expertise in hunting down people who move around.

That is a word for them in support. There is another word for them when they are making the lives of people trying to do their best a misery.

Putting aside the scurrilous game of chasing debts that are out of time or already paid, they cannot get involved unless the creditors call them in.

Now in my experience creditors call in debt collectors inappropriately. They call them in when there is a negotiation on the table. I have seen them called in when the creditor tells me I have eight weeks to respond to a letter.

I have seen them called in when a negotiation has moved on the the FOS. Once there, until the FOS reaches a decision the matter is in arbitration.

I have seen them called in erratically during early exchanges of a negotiation. And I have seen them called in even after an agreement has been reached.

And I have seen recovery teams within a creditor formed into an inhouse debt collection agency, with all the pretence of being a separate company.

So, while there are many things to be said about the manner of debt collectors, they really should be in the mix only after all negotiation, including the FOS arbitration, has been completed AND if here remains real reason to believe that default is deliberate; and that means NOT by assumption, by rote or by procedure.

And there are many things to be said about the manner of debt collectors. Here the regulators are very weak in enforcing fairness. But that deserves not just another post in this blog, but a whole book!

Joseph Harris
Debt Control Man