subject: How Will A Debt Collector Try To Collect My Debt? [print this page] Collection agencies primarily use letters and phone calls to achieve collection. Collection letters are typically computer generated, and differ in severity. The first letter usually starts with a simple "reminder" tone and as the letters progress they may build up to a final demand.
The first demand letter must legally state that the debtor has the right to dispute the validity of the debt, or if they choose to, request written verification of the debt. If they would like to receive written verification, the agency by law must send some sort of confirmation after verifying it with the original creditor. Demand letters will also confirm that they come from a debt collector, and that any information obtained will be utilized in the attempt to collect debt.
The envelopes that third party collection agencies use can't disclose anything pertaining to their nature. Thus, anything embarrassing, such as a post card, would be strictly prohibited. The return address should also be discrete; as a result many collection agencies will simply utilize their company's initials, or some other type of vague name.
The nature of the additional notices will depend on the debtor's reaction. Agreeing to repay the debt will most likely result in letters written with a gentler tone. Belligerent reactions, or even a lack of reaction from the debtor may result in a more threatening tone.
The goal of debt collectors is to attempt to create a feeling of urgency. Most debt collectors are aware that many debtors owe many types of debt and seek to instigate the debtor to prioritize their particular account. Deadlines may be set, with vague threatening tones, but failure to respond usually results in only more correspondence. Collection letters will always try to convince the debtor to call the collection agency on the telephone directly. If the debtor does not within thirty days, then the collector will often initiate phone calls.
by: Mallory Megan
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