Debt Collection Agency and Their Accountabilities

  • Katie Wolfe
  • April 11, 2019
  • Comments Off on Debt Collection Agency and Their Accountabilities
  • Business Services

Prior to getting into the responsibilities of debt collection agencies, isn’t it better to start off with understanding the meaning of the term “debt collector”?  

First thing first, a person who collects debt is that who represents an agency which collects debts. These professionals have rights to contact you to: 

  • Give money that you have taken from someone and aren’t returning (due to what so ever reason) 
  • Give an explanation as to why you have not repaid before the due date 
  • Provide bank account details so that appropriate measures can be taken  
  • Recover or inspect items that are under mortgage (applied in few cases) 
  • Review and check existing bank account statements  
  • Settle bank accounts or make any other possibilities through which you can pay  

Note: a debt collector has the legal right to approach you through different ways to know the reason why you have not responded to his previous reminders. Certain action is taken after several reminders involving court and sending a legal notice.  

What happens when you are taken to the court? 

Yes, there is a huge probability that legal notice is sent to you. However, as soon as you receive a notice from the court, it is best to call or visit the best debt collection agency Sydney. They give free of cost consultation and guide you on how to respond to the notice. In case of ignoring the notice and not hiring professional help, you will be charged guilty and will be punished for the same. In that case, the creditor has the power to repossess items so that he can sell and get money.  

What are the objectionable demeanours of debt collectors? 

It is true that debt collection is necessary. However, it is a very tiresome and frustrating job. Debt collectors act gruesome and cross boundaries which is why there are some methods of doing the needful. It is also considered wrongful (by law) to do the following:  

1.    Abusing is not allowed under any law. Being a debt collector, you can’t demean, mimic, shout, pass comments, be harsh with the use of foul language, racist lingo, and contacting too many times in the same week or duration. These all come under harassing and the debtor can sue you on the behaviour.  

2.    Threating always have a negative impact. You being a debt collector can’t tell debtor that his house will be put on fire, or will suffer because of not repaying, or any other kind of damage will be seen if the amount is not given back. Also, the debt collector cannot block the owner’s house or stop the owner of the house to go inside the house or asked to leave the property when the owner doesn’t want to do so. However, if the debt collector has a court order, you being the debtor have to obey the debt collector. Honestly, it is a lot better to contact police in such cases so that matter can be taken care more calmly and smoothly.  

3.    Make false legal or court documents and sending it to the debtor so that he gets mislead and takes the wrong decision. You being a debt collector can’t behave and take over law and order. Maintaining the stature is how it is supposed to be dealt with.  

4.    Most importantly, the debt collector has no right to take advantage if you are sick or are aged, physically challenged or illiterate. Debt collectors are not permitted to take advantage of your lack of knowledge with the law as well as the procedure of repaying.  

Note: always raise voice if you are harassed or tortured by the debt collector. Know that you are a human and need equal rights in society. So, file a case or contact police at your earliest if anything of such sort takes place. 

How one should deal with a professional debt collector? 

Remember, it is your responsibility to be cooperative with the debt collector but never misbehave and deal with everything professionally. It is exactly what debt collectors are supposed to do. Being a debtor, you must take care of the following points: 

  • Never lie to the debt collector. Be honest about everything related to the bank account and financial situation. Likewise, don’t hide other debts from the debt collector.  
  • Update debt collector if and when contact number and important information is changed. 
  • Accept “repayment agreement” only if you can really afford the entire agreement.  
  • Ignoring the debt collector’s call is not a good idea. Calls should correspond promptly.