How to Cope When a Bill Collector Calls

Getting a phone call from a bill collector can be very stressful to many people. I should know because I was a bill collector for many years and I called people about all sorts of debts. I started off by working on past due cell phone bills, then through the years I worked on such debts as credit cards, municipal debts, and even delinquent car loans. I also spent quite a bit of time working as a collector on past due student loans. I'd like to help everyone know what to do when a bill collector calls and how to successfully handle the situation. You may be going through a rough time financially, and sometimes collector calls feels like it's only making your situation worse. But if you learn how to handle the call, then it may help to diffuse the pressure of the situation.

The first thing to do is to remain calm and answer the phone yourself. Do not, under any circumstances have your child answer the phone and lie for you. Most collectors can tell exactly when a child is screening calls and such actions do nothing to endear you to the collector. The next step is to be polite and show mutual respect to the collector. Don't assume that the collector is a subhuman creature sitting in a darkened labyrinth that is only calling to inflict emotional distress on you. Yeah, there are some very rude collectors in the industry, but for the most part, most of them are just people that are trying to support their family just like everyone else. Even if they are soulless denizens of the underworld, cussing them out before the first sentence will do nothing to help your plight.
So, you've ID'd yourself to the collector, and they've stated how much you owe, aka made the "demand" for payment. (Don't fret about the term "demand", that's just what it is called in the industry, so I'll use the term here.) Do not tell the collector that you you're not paying because you were unfairly or charged unjustly unless you are actively pursuing a resolution of the debt with the merchant. This is a very common excuse, and bill collectors know that if a person was billed in error, then they usually work to clear it up before the debt gets to the point of being in collections. If you truly were billed unfairly, then sadly, the collector can usually do nothing to resolve this for you. Your account is one of hundreds or thousands that the merchant sent to the collection company to resolve, and the collector is virtually powerless to remove you from the collection system. Do NOT threaten to sue the collector, their boss, their company, the original merchant, or the bill collector's mother. I can not count the number of times that I was threatened with this, and my usual reaction was to ask for the name of the debtor's lawyer. In all my years of collecting, I don't think I ever EVER got the real name of a real lawyer in answer to that question. Do NOT tell the collector that you're going to pay one dollar a month because your neighbor used to be a bill collector, or read on the internet, yadda yadda yadda. There are tons of sites online with horrific credit misinformation and the "dollar a month" scam doesn't do anything to stop any collection efforts. If you do want to educate yourself about your rights as far as debts, do an online search for the Fair Debt Collection Practices Act, or FDCPA, regulated by the FTC. Your state may also have specific laws that are more state specific than federal regulations.

If you are a professional debtor or deadbeat that runs up bills, don't waste anyone else's time. Be upfront and tell the collector that you have no intention of paying the debt. Generally speaking, most deadbeats are very easy to spot if the collector is provided credit reports as part of the debtor's account. In my experience, the deadbeats are few and far between and I always felt that most people wanted to pay, but couldn't figure out how. So, now that you know some of the don'ts, here's what I suggest to do: The collector may want to do a quick financial review with you. They do this in order to see where your money is going. You'd be surprised at how many people don't know how to set up a budget and have never taken a hard look at their own finances. Generally speaking, the collector probably has a very good idea of your financial situation if they're looking at your credit report. The collector may be able to find ways and suggestions to economize that you hadn't considered. Keep an open mind and listen to their suggestions. I found it to be very common that people would be spending over 200 a month on entertainment and eating out and not even realize that entertainment is a luxury, not a necessity. Be prepared to take a frank look at your situation while talking to the collector.

Getting out of debt may involve cutting corners, and you may want to search online for ways to economize on other areas like groceries and clothing. The bottom line is, the collector is going to expect you to pay off your debts and most are willing to set up a reasonable payment arrangement as long as you are honest and forthright about your situation. Do not make excuses, don't blame your situation on others. The best thing to do is to discuss your situation with the bill collector and arrive at a payment schedule that both of you can live with. And let's face it, you're going to feel much better when you get a handle on your finances and you don't have to worry about who is on the other end of the telephone.