Today’s article is written to all consumers that are facing a problem with trouble paying their bills and may have trouble in the future; this article applies to everyone.  Even if you think you will not have a problem, you still need to know how bill collectors trick people into paying their bills.  The tactics illustrated are written from my first person perspective and training.  Consumer beware!

First thing to know is that no debt collector is your friend. As soon as they introduce themselves, they begin the lies.  All debt collectors adopt an alias name while at work; it is almost their other personality. Why would they do this?  It is to keep you from looking up who they are, their phone numbers, and address because they are fearful that you will return the harassment they are about to onslaught you with!

Another very common practice within the debt collection industry is to adopt names that appear to reflect that are normal debt collection agency is actually a law firm. An example of this is "Anderson, Crenshaw and Associates", or "Goldman, Phillips, Franklin and Associates". Both of these are real collection agencies that use this form of deceit to abuse consumers.  You must know the reason behind these names, they are used to insinuate they are attorneys; this tactic is extremely effective.  I can’t even begin to tell you the number of people that have received phone calls and believe they are about to be sued by these companies.

If you are contacted by someone that states a name such as Anderson, Crenshaw, and Associates about a debt, ask the debt collector to identify whether or not they are an attorney.  It is against the law for them to say they are unless that is true.  Make sure to get their bar number as well.  A bar number is only given to attorneys once they have passed the state bar exam.  If a debt collector refuses to identify their bar number, you need to be extremely cautious in dealing with this person.

Now let me discuss how bills collectors are trained to deal with consumers once they have called you.  There job is to take control of the phone call and inform you of the debt and then get you to pay.  There is a “gray” area in the collection industry with what bills collectors are allowed to say.  The FDCPA (Fair Debt Collection Practices Act) is a very strictly enforced law that states what debt collection agencies and bill collectors are allowed and not allowed to do.  This gray area is the actions that are border breaking the law but often left up to you, the consumer to make sure are enforced.

Do not allow them to scare you by stating they are going to recommend a legal action. Read and listen closely. Any time a collector "recommends, advises, will let their legal department know" they are bluffing. It is against federal law for a debt collector to threaten you with legal action unless they truly plan on following through with that threat within 30 days. But they can recommend whatever they want as often as they want. This tactic is commonly used with a date and time deadline. If a bill collector gives you a deadline to pay your bill or call back, call their bluff and another deadline will come next month. Know that bill collector's work on a commission basis and at the end of the month is where spiffs and bonuses are really earned. If a bill collector says that you must or demands that you do something by a certain time, ask them "why or what will happen?" I guarantee you that they will come up with some bogus lie and try to blow smoke through the phone. Legal action is almost always preceded by a Demand Letter from a collection attorney. This letter is something you should heed as it is typically followed up with a lawsuit.

Know that a bill collector has no authority to garnish your wages. Only a court can have your wages garnished. If a bill collector threatens wage garnishment, demand for a copy of the judgment against you. Again only a court can have your wages garnished and this follows a lawsuit where a judgment was entered against you. If a debt collector sends any information to your employer about your debt, they have violated the Fair Debt Collection Practices Act; a piece of federal legislation that defines a debtors rights against creditors, collections agencies, and collection attorneys. Wages can easily be garnished for not paying child support, student loans or your taxes, but it is a difficult and very expensive process to undertake on any other debt.

Never give any of your information to a bill collector. Do not give them your name, your phone number, your employers information, nothing; if you do, they will use it against you later. A new common trick a crafty bill collector came up with is sending you a "hardship waiver" form. This hardship waiver form is nothing more than a generic form to request personal information from you that will be used against you. They state that if you complete this form, they can get some of your debt reduced or even dismissed by the original creditor. If you refuse to complete this form, then they state you owe the debt in full and payment is due immediately. This is a highly effective trick since most consumers think they are getting something in return for a few minutes of their time. In reality, you are giving the debt collector everything they need to use against you. This hardship waiver form often demands to know all of your contact information, address information, next of kin contact information, employer information, current income status, and asks you to verify information they already have received from the original creditor. Again, there is no such thing as a hardship waiver form and it will never be used to help you reduce your debt.

If you given them your contact information, they will call those numbers non stop. It is not unheard of for them to call 10-15 times a day. If you give them your next of kin information, they will call them and leave messages nonstop. I have even heard them calling a neighbor and telling them they have an emergency message they need delivered to you. If you give the collection agency your employer's information, you should expect to have an employment verification letter sent to your boss. This is another form that will be completed by your employer verifying your work status and must be signed by the debtor. The reason they make you sign this form is to scare you and let you know that your boss knows that you are not paying your debts. Although this tactic border lines the grey area of the Fair Debt Collection Practices Act, it does not violate it because they are not providing any information about you, instead they are requesting it and insinuating to your employer why they are contacting him.

Another common tactic a bill collector will use when they are starting to get disparate or if they are not trained as well is using your credit report against you. They will state that if you do not pay the debt, it will ruin your credit report. Chances are the debt has already appeared on your credit report and no more damage can be done to your credit score. From here, your credit score will only get better either through 7 years of waiting for it to drop off of your credit report or by paying the debt. If you pay the bill in full, you are screwing yourself because it will not help your credit score anymore than if you had done Debt Settlement on the debt. When you pay off the debt, the account must be updated to all of the credit bureaus that the debt is paid with a $0 balance. The number 9 that was reporting as a charge off on your credit report will be changed to a number 5, which means the debt has been satisfied / paid and there no longer is a balance. If the debt is settled, the number 9 still changes to a number 5 and your credit score will increase in the same way.

Often times a smart bill collector will tell the debtor that they will not work with a Debt Settlement company. Again this is another lie; a bill collector will work with anyone who has the ability to pay on a debt they are collecting on. The reason they will tell you they will not work with a Debt Settlement Company is to undermine what the Settlement company tells their client. If you become a victim of bill collectors deceit, you will end up paying the collection agency more than you should. If you refuse to believe the lies, then the settlement company can stop the harassing phone calls. Remember, bill collectors work on a commission basis; the reason why the bill collector goes to work is to earn their commission.

If you are having problems with bill collectors harassing you or a collection agency has placed negative information on your credit report, you should not try and deal with this problem on your own. The biggest mistake a consumer can make when dealing with a collection agency is to try and take care of the problem themselves. Debt Collectors are highly trained people who know how to take advantage of even the most knowledgeable consumers.