Three of my previous posts were on “Crazy Stuff Collectors Say.” In case you missed those posts, here are the quick-links to the previous articles:
Crazy Stuff Collectors Say – Part I
Crazy Stuff Collectors Say – Part II
Crazy Stuff Collectors Say – Part III
I wanted to follow up on this theme, because lately I’ve been hearing a lot of reports from clients on a tactic that seems to be getting more and more play. It’s been around forever, but I’ve been hearing it used much more often recently. Here’s how it goes:
You get a voicemail message (because you’re screening your phone calls) from a collection agency or a collection attorney firm. “This is Joe Smith with XYZ Company. I have your case file on my desk – number 12345. I strongly recommend that you have your attorney call me immediately.”
Scary sounding, right? Nope! Just a debt collector trying to get you to call back for another dose of verbal abuse and strong-arm collection pressure.
Third-party debt collectors are not permitted to threaten litigation unless (a) they are in a position to bring said litigation, and (b) they have been authorized by the creditor to file a lawsuit. But the above voicemail message technically does not violate that rule. Notice the technique. They did not say they were going to file a lawsuit. Instead, they referred to a “case number,” and you automatically think “court case” when they meant their internal file reference number. Next, they are telling you to have your attorney call them. You immediately think, “Oh, no! I must be getting sued!”
Folks, this is a BLUFF, and that’s all.
The collectors using this technique are usually the LEAST likely to bring an actual lawsuit. It’s a tactic used frequently by agencies located in a different state than yours. It’s getting harder and harder for these collectors to reach debtors, as more people become aware of their rights under the law. So this is a common tactic employed to create what I call a “false sense of urgency.”
If you are on the receiving end of collection activity and you get this type of voicemail or message, remember it’s most likely just a collection tactic to get you to call them back. If you think you might have been sued, but you’re not sure, then simply call your local courthouse and ask. It’s that simple.
Michelle, whether or not to call back collectors who leave
messages like this depends on what you’re trying to accomplish.
If you are trying to settle or resolve the accounts, then the
only practical way to do this is to call back the agency and work
out a deal. On the other hand, if you don’t have any money to
settle with, then as long as the account is not being worked by an
attorney in your state, then there is no great urgency to return
their phone calls and get subjected to the usual verbal abuse dished
out by collectors.
My wife and I have a business that we have had to downsize and get back to what we really want to do and what is profitable. We have been basically running from our debts to where we can settle them for less as we could not begin to pay off the accounts. Customers not paying, employees stealing, and us, got us to this point. We have been offered a very good settlement for 30% on $30,000 and are paying that off. Problem is we have others wanting money too and all we can do is be honest and tell them to get in line. We are making priorities but I do not want to get into a payment plan with anyone, just to fall short of that plan and loose everything we worked for.
I just had a creditor want to settle but seem to require bank info to assure I will settle. What should I do? I have been burnt too many times by this to do it again!
Kevin, don’t provide bank/payment info to a creditor or agency until you first have a settlement letter in-hand.
Collectors working for third-party agencies in particular will often try to get this information from you
by claiming it’s needed to show “good faith” on your part. Baloney! No letter, no deal, period. This is the
one unbreakable rule of debt settlement. You MUST get a letter first before you release any payment information.
Also, you should never pay a settlement out of your main checking account. Too risky. Set up a second checking
account to be used ONLY for doing settlements. Also, get some help! See the training/coaching packages offered
on my site. Do it yourself, but not by yourself.