Common Myths About Debt Collectors

Myth: There is no difference between debt collectors. Debt collection specialists that work “in-house” as opposed to those who work for “third parties” have a few key distinctions that set them apart. It is important to note that In-house debt collectors usually are also credit granters, while 3rd party debt collectors are typically licensed collection companies.

Debt collectors that are hostile and intimidating are believed to be the most successful. It is a well-known fact that the most successful debt collectors are highly educated and experienced professionals who (1) have a broad understanding of the factors that motivate different types of people, and (2) are able to quickly identify the factors that will motivate a specific individual, and (3) are excellent communicators. The most effective debt collectors engage in collaborative efforts with account holders in order to get paid. If you want to hire a good debt collection agency, look no further than small business debt recovery gold coast

Myth: Debt collectors are going to be knocking on your door- The picture of a debt collector rapping on a door and demanding payment has been widely circulated in the media for many years. Debt collectors may be seen going door to door in a variety of media, ranging from films made by the Marx Brothers in the 1930s to cartoons drawn during the Great Depression, as well as in television shows and newspapers. In all honesty, debt collectors seldom set foot inside a person’s house or place of business in order to collect a debt. It’s just not a productive use of time. A debt collector in the present day may make a few hundreds of contacts in a single day by using modern technology and cellphones, which is far more than they could accomplish by walking door to door.

Myth: Debt collectors often force individuals to declare bankruptcy. When individuals declare bankruptcy, their previous financial commitments to their lenders are often discharged, and the creditor, as well as the debt collector, get nothing at all. Debt collectors are aware that people who are experiencing financial difficulties frequently require assistance in resolving their accounts in a manner that does not involve costly litigation. Additionally, these individuals frequently require the leeway of alternate solutions in order to work through their financial difficulties. The act of collecting debts is technically the work of debt collectors, but in reality, this process often involves some degree of counselling.

Myth: The primary concern of any and all debt collectors is to engage in disputes with customers. It is a well-known fact that the majority of coverage in the media on the debt collection business pushes customers against debt collectors. In point of fact, debt collectors are often the first individuals to have a conversation with customers aimed at finding solutions to problems related to unpaid invoices. Debt collectors are often the recipients of grateful notes and correspondence from the persons they have assisted. Additionally, the activities of debt collectors prevent an increase in the pricing of products and services in the market. 

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