For anyone who has ever had to handle a debt collector you know that it can be a disrupting and frustrating experience.  Lenders have a right to collect the money that is due; however, the extent to which they go is sometimes reprehensible.  Borrowers are hounded by phone calls at all times of the day and night, threatening letters, and calls at work which jeopardize their employment.

There are laws regulating the debt collecting industry.  But, most companies ignore these rules hoping the consumer will not be aware of the law or are too embarrassed about their situation to do anything about the harassment.  The practice of threatening consumers takes place with credit card companies, auto lenders, and mortgage companies.

Many of these companies have no direct control of debt collecting practices after they sell the debt to the collectors.  They have no responsibility or stake in how their customers are treated.  Once the debt is sold they are satisfied and wash their hands of the consumer.

The real threats that they make terrify the average consumer.  While they do have a right to call you at home, they are supposed to only make calls between 9am and 9pm, but they don’t always follow that rule.  If they cannot reach you they will call at any time.  You are also allowed to tell them not to call you at work.  Again, however, these rules don’t stop them.  Supervisors and bosses get very angry if they continually have to field these calls.  For those with bad credit these attempts to collect a debt invade their entire day as well as making their credit worse than it ever was before.

Credit card companies and other lenders are now making it a common practice to start hounding customers with a few days of the due date.  This is particularly annoying to the customer who pays their bills on time who may have already mailed their payment.  Lenders no longer buy the excuse that “the check is in the mail”, with good reason.  They have heard this too many times before and they treat everyone who is even a little late like sub humans.

Insults and threats are a common tactic in the collection industry.  Some of these threats are sometimes very extreme.  They would have you believe that you are a low life debt dodger and that you are in danger of losing everything you own.  The threat of a bad credit rating is unthinkable to most people.  However, those who already have bad credit seem to take this harassment with a grain of salt.  They know that their credit is bad and this rude and obnoxious person on the phone can’t possibly make it any worse.  These consumers find themselves in an impossible situation and what they may need is a collector that will help them instead or threaten or verbally abuse them.

We need better enforcement and oversight of the collection industry so that they will be forced to collect their debt in an acceptable manner.