An Ounce of Empathy is Worth a Pound of “Strong-Arm”

In real life, being pursued by a debt collection agency is no laughing matter. There is a common perception that debt collectors operate outside of the law and act inappropriately to collect outstanding debts. 

This is generally not true.  Most debt collectors are professional negotiators and rarely attempt to “strong-arm” the borrower into making an immediate full payment.  After all is said and done making a “right-party contact” is often the most difficult part of the job and throwing that opportunity away by making outrageous demands will often result in a hang-up by the borrower.  So most successful collectors know that an ounce of empathy is often worth a pound of “strong-arm” techniques.

 Professional collectors know that calling a borrower is not fun.  They get yelled at, lied to and hung up on more that most of us could accept without losing our cool.  Collection actions by third party collectors are governed by the Fair Debt Collection Practices Act (FDCPA) which is a federal law.  Violations of this federal statute can result in civil fines and possible criminal prosecution.  Third party collection agencies, law firms and debt acquisition firms are very aware of what they can and cannot do in order to convince a borrower to pay and to remain in compliance with FDCPA regulations.  Most first party lenders, banks and auto finance companies prefer to remain in voluntary compliance with the FDCPA.  Commercial loans are not covered by the FDCPA.

Nobody likes to receive a call from a debt collector. Many collectors see themselves as consultants who can help a borrower address their debt issues.  Though this may be true for some collectors it may not be true for all.  Remember that collectors are generally paid a commission, bonus or incentive in order to induce payment so, in order to achieve the desired results, they may offer only one of many available solutions and that solution is often “pay the bill now.”  

Some collector may take into consideration the debtor’s health, work situation and the overall economic status when proposing a solution but, all too often, the most successful collectors may not be motivated by empathy and instead look to achieve their desired result even if it is not in the borrower’s best interests. If a borrower is able to address a valid debt with a collector they should try to

• work constructively with the collector
• cooperate with reasonable requests
• communicate all pertinent developments

 Before making a payment, the borrower should verify the total outstanding debt and the name and address of the original creditor. A legitimate debt recovery agency will not ask for cash payments.

One has to work toward either paying in full or settling the debt and there may be future repercussions for those who avoid paying.  Ultimately, it is a long and winding road wherein the outcome is uncertain.  Having the right information at your disposal is your ultimate weapon.

Patrick Ingegno can be reached at inner-circle@optimum.net or www.innercircledebtsolutions.com