Picture

Vertical Divider

​

Credit Service Company
  • Home
  • About
    • Our People
    • Associations
    • Frequently Asked Questions
    • Medical Debt Collection With Compassion
    • Privacy Policy
  • Our Services
    • First Party Outsourcing
    • Third Party Collections
    • Legal Collections
  • Industries Served
  • Quality & Compliance
  • News
  • Contact Us
    • Interested In Our Services
    • Make a Payment
    • Employment
    • Feedback
  • Home
  • About
    • Our People
    • Associations
    • Frequently Asked Questions
    • Medical Debt Collection With Compassion
    • Privacy Policy
  • Our Services
    • First Party Outsourcing
    • Third Party Collections
    • Legal Collections
  • Industries Served
  • Quality & Compliance
  • News
  • Contact Us
    • Interested In Our Services
    • Make a Payment
    • Employment
    • Feedback

Six Debt Collection Myths Debunked

7/19/2021

 
Picture
​​Collection agents are “shake-down artists.”
​
Collection agents will knock on your customer’s door.

Collection agents will force consumers into bankruptcy...

Six Debt Collection Myths Debunked

Picture

Separating Collection Agency
Facts from Fiction


Collection agents are “shake-down artists.”
Collection agents will knock on your customer’s door.
Collection agents will force consumers into bankruptcy.
Collection agents only care about getting paid, even if you lose customers.

Are you interested in retaining a debt collection agency to recover overdue accounts, but put off by some of these myths? If so, you’re not alone.

It’s time to separate fact from fiction. Let’s dispel some of the most common misconceptions about debt collectors.

Myth #1: Debt collectors bully and harass people who cannot pay.  

Fact: Consumer harassment is both ineffective and illegal. The Fair Debt Collection Practices Act (FDCPA) is a federal regulation that ensures collection agents do not harass or threaten consumers in any way. FDCPA enforcement is strict, with any violation resulting in expensive lawsuits. And while these violations do occasionally occur, they are isolated incidents and certainly not the norm. 
 
Reputable debt collectors, on the other hand, never resort to such coercive tactics. Instead, they’re trained to listen to what the consumer tells them so they can determine if the consumer actually has the resources to pay the past-due bill.

Myth #2: My customers can be arrested if they don’t pay the collection agency.

Fact: Debtors’ prisons have long been a thing of the past. No one is going to arrest your customers if they don’t pay back their debts.
  
What's more, it is illegal for a debt collector to threaten a consumer with criminal charges or jail time. No reputable agency would ever resort to those tactics. (Failure to pay child support or back taxes, or failure to appear for a debtor’s examination, can result in jail time. However, such situations do not pertain to the vast majority of consumer debts.)
  
So, no -- your customer will not be arrested if he fails to repay the debt.

Myth #3: Debt collectors will knock on my customer’s door.

Fact: The media likes to perpetuate the image of a debt collector knocking on doors to collect. But in reality, this almost never happens. Think about it. Why would any reputable collector resort to such time-consuming measures? It’s neither efficient nor effective, when modern technology allows agents to make hundreds of contacts a day. ​​
Picture
So if you’re worried that a collector will be paying a visit to your customer’s home, forget it. Not gonna happen.

Myth #4: Collection agencies force consumers into bankruptcy.

Fact: Whenever a consumer files for bankruptcy, almost all of his unsecured debt is wiped clean. Which means that both the original creditor and the collection agency will receive little or nothing.
 
As a result, it would not make sense for a debt collector to encourage your customer to file for bankruptcy. Rather, they understand that people in collections often need guidance in settling their accounts. This is why they offer the flexibility of various payment arrangements. 
–Article Continues Below–
Picture
And while it is true that a collector's job is to collect, doing so often includes financial counseling. The ultimate objective is to resolve the account, not ruin someone’s life or force him into bankruptcy. Instead, they’ll recommend payment plans and other programs to help alleviate financial stress on the consumer.
​

Myth #5: If I retain a collection agency, I’ll lose customers.

Fact: Professional debt collectors are trained to resolve your client’s problems, not contribute to them. They know that consumers are not happy to learn that their account has been forwarded to a collection agency. They’ll work with your customers in an amicable, diplomatic manner.
 
They’re also trained to ensure your company’s reputation is not tarnished in any way. So utilizing a reputable agency should never cost you customers.
 

Myth #6: Collection agencies are expensive.

Fact: Most debt collectors operate on a contingency basis. You only pay if they collect. And while they will keep a percentage of the amount recovered, paying an agency is far less expensive than not getting paid at all.
 
In addition, the best collectors –  such as the professionals at CSC – strive to provide measurable value to their clients by lowering their total accounts receivable.
 
If you’d like to learn more about how CSC can maximize debt recovery for your business – without jeopardizing your valuable consumer or patient relationships – contact us today.

Sources:
Featured Image: Adobe, License Granted
​ACA International
Nolo
Investopedia
Windfall
Picture
View my profile on LinkedIn
Picture
View my profile on LinkedIn

Comments are closed.

    Archives

    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    May 2021
    April 2021
    March 2021
    January 2021
    December 2020
    November 2020
    October 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020

    RSS Feed

Credit Service Company, Inc.
Business Office
Call Us - 719-634-3766
Call Us - 800-467-3766
Customer Assistance
Call Us - 719-634-1357
Call Us - 888-634-1357
Vertical Divider
2150 Lelaray St.
Colorado Springs, CO 80909
P.O. Box 1120
Colorado Springs, CO 80901
Credit Service Company, Inc.
Proud Member of
Picture
Credit Service Company, Inc.
Proud Member of
Picture
Business Office Hours
(Mountain Standard Time)

Monday: 8AM - 5PM

Tuesday: 8AM - 5PM

Wednesday: 8AM - 5PM

Thursday 8AM - 5PM

Friday: 8AM - 5PM

Saturday: Closed

Sunday: Closed
Customer Assistance Hours
(Mountain Standard Time)

Monday: 8AM - 7PM

Tuesday: 8AM - 7PM

Wednesday: 8AM - 7PM

Thursday 8AM - 7PM

Friday: 8AM - 7PM

Saturday: Closed

Sunday: Closed
Any correspondence related to a dispute should be sent to:
Credit Service Company, Inc.
PO Box 2247
Colorado Springs, CO 80901
Picture
Picture
CSC Named Best Workplaces for 2nd year in a row!
© 2022 Credit Service Company, Inc.
Picture
This communication is from a debt collector and is an attempt to collect a debt. Any information obtained will be used for that purpose.
Privacy Policy​
Credit Service Company, Inc.
is proud to be a

​Service-Disabled Veteran-Owned Small Business
​and
HUBZone Certified. 

Credit Service Company, Inc. BBB Business Review
Picture
Site powered by Infront Webworks