Debt collectors have one responsibility. They have to collect debts from the people or the organizations. Most people do not even know who debt collectors are. But why is it that no one tells you about debt collectors?
What does no one tell you about debt collectors?
These debt collectors are not given importance in the country, and they do not hold strong positions. Moreover, they can be easily defeated when the situation worsens, and courts are involved. I’ll explain their incredibility by giving an example. A person has marriage problems. And eventually, he gives a divorce from his wife. After divorcing the wife, the husband had to pay a considerable amount of money to the wife. Moreover, the husband might also face other issues related to the marriage.
The wife has the authority to go to the debt collectors and ask for their services. The woman hires these debt collectors to retrieve the debt from the man. Their first step is that they call the person multiple times to pay back the debt. If the person does not respond, they file lawsuits against him. Debt collectors are famous for not winning the lawsuits they file on customers. As a result, if they fail to win these lawsuits, the man will not have to pay the debts to the women he divorced. The same happened to a couple in the United States of America. They had a divorce. And the wife hired a debt collecting agency to take out debt money from him. The debt collectors filed 6-lawsuits against him, and the person won all of the six lawsuits.
Another thing that people do not tell us about debt collectors is that they do not have the proper and complete documentation for filing a lawsuit against the person who has to pay the debt. When matters reach the courts, these debt collecting agencies fail to provide the documentation from which they can prove that a person has to pay the debt.
These debtors are not allowed to file a court case on the opposing part. They have a different system where they can apply a complaint to the opposing party to pay back the debts. If the debts are not paid, these complaints are taken to court, and the opposing party has to face them. So we can not say that they file a case against the opposing party. Moreover, a person said that when they filed complaints against him for credit card debts, they did not have the complete data and documentation to continue with the civil procedure. Moreover, these debt collector companies did not have sufficient proof to support their complaints. Nor did they have any idea about the total debt that had to be paid and the total tax applied on that debt.
Another flaw in their complaints was that the debt contract was not signed by the original party involved in the contract. The other issue face by them was that did not provide the source of knowledge of the party who was involved in the verification of the complaint. Moreover, the complaint also lacked vital documents such as proof of ownership of debt. All of these things prevail in the actual position of debt collectors, and we can say that they are of no use at all when collecting the debt.
Moreover, there is also a reason why these debt collector companies fail to put this information into their lawsuits, and the reason is that they do not have that proof. These debt collectors do not have the resources and the contacts to retrieve all your data. They are not linked to any government organization, so they fail in acquiring sensitive data of customers such as due amount or contracts of debt. It is the policy of the government of the United States of America to not provide personal information of their citizens to private organizations.
The only information they have is your name, contact info, credit card number, and the total money in your account. They are only able to provide the court with a copy of a spreadsheet that has all of the information. Moreover, don’t even have credit card bills. If they had to prove to the judge, they need to provide an electronic copy of your credit card bills.
Moreover, these lawyers and debt collectors are aware of the fact that they have nothing in their will t take out debt from the opposing party. The only thing they do is provide examples of other cases in their case. They also copy-paste the proceedings of other lawsuits and paste them into their documents. These documents are always rejected by the court as it makes decisions based on proof. Moreover, these things are common, and they have lost similar lawsuits multiple times. They account for almost hundreds or thousands of lawsuits lost in the United States of America alone. They can not win any lawsuit unless the party that is being sued itself raises those issues and responds to them.
Moreover, there are other secrets also, which are hidden and not given to the people. One of the secrets of debt collectors is that they don’t care about how they make their complaint and present it to the judge. They also do not care if the quality of the complaint is up to the mark or not, and this is the reason why they are unable to win any lawsuits. I will explain this using an example so that you can understand this concept in a better way. If you have a debt payment issue and someone has hired debt collectors to take that debt money out of you, you do not need to worry as you will win anyway. You have to make a defense for yourself. If you can just prove to the judge that you understand the basic concept of debt collection, you will win the lawsuit. These debt collectors don’t care if you win the case or lose it.
But have you wondered why they do this? Why would they want to ruin their reputation? The reason for this is that they do not put the effort into making a strong complaint. They do not make a strong complaint because they think that the defendants won’t show up anyways, and so the judge will decide in their favor. There are 90 percent chances that the defendant does not show up and so the debt collection agency is given a default statement. They now have the permission of the court and they now can move toward the defendant’s assets and take out multiple bank account statements.
Another secret that no one has told you about debt collectors is that they are not interested in winning cases, and so they don’t provide the proper evidence. I will explain this using a real-life example. A person had complaints lodged against him after divorcing his wife. The wife demanded payment of debts so she hired a debt collecting agency. They filed five different lawsuits against him. The person studies the lawsuits himself, made a plan to defend him, and won all lawsuits. Defendants who face these lawsuits have a 99 percent chance to win them.
The person said he used to visit the courts and participate in the proceedings of such cases. All other people who defended themselves won the lawsuits except one person. This person lost the lawsuit even by having an attorney to defend him. A lawsuit was filed against him by the Barclays international; bank. The Barclays bank did not consider them as a debt buyer, but they send an attorney to represent them. The defendant lost the lawsuit. There were multiple reasons why he lost that case. The first reason was that for the first time the organization that filed a lawsuit came with proper evidence to support its statements. Moreover, they followed the correct procedure to file the lawsuit and did not have any flaws in their documents.
Facts about debt collector you did not know:
They can be wrongs sometimes:
You will be considered dumb if you think that debt collectors will call you for a legitimate reason. It may be an exaggerated statement, but it is true. These debt collectors are wrong most of the time, and due to these reasons, defendants do not pay any importance to them. Most of the time they are provided with the wrong information, and sometimes they trap dependence in bogus debts so that they can pull out money from them. You don’t need to worry as you can curb these situations. The government provides debt validation to the people so that they can refrain from being involved in bogus debts. Moreover, you should be careful yourself too and validate your debt before you pay it.
They don’t go away if you do not respond:
This is a common misconception between many people as they think that if they ignore these debt collectors, they will go away, and you will not have to pay your debt in the future. First of all, they will not go until and unless you pay the debt back. Most of the time, they stop sending you those annoying emails and texts and will go away, but that does not mean that you will not have to pay your debt. You prevent the debt collectors to stop annoying you. The debt is added up and you will have to pay it when you reach your credit limit.
Sometimes, the debt won’t be included in your credit card bills, but that does not mean that they have erased your debts. It will exist in the creditor’s lists, and if you decide to make another account with that business, you will have to pay for the unpaid debts first.
You can not avoid your debt with letters:
These letters are not normal, and they are called ceased and deceased letters. By using these letters, you will only stop the debt collectors from calling you. So you should not keep yourself in the misconception that the debt collectors will go away. It will still be shown on your credit card bills and can not be removed until you pay for it. Moreover, it will affect your credit card score, and you might face problems in the future when you want to issue credit cards. You might also have rejected applications when you apply for a loan. If one debt collector can not take out the money from you, the case will be forwarded to another debt collector company.
Paying for debts will not remove debt from credit reports:
When you pay for the debts, the debt collector company will update your data involving credit card reports. They do this so that they can prove to the court that all dues are cleared. When you pay your debt, it does not change the fact that you still owe the debt. Paying your debts on time is good, but you will not see a visible increase in your bank credit after you pay your debts.
Paying for debts will restart the time limit of credit:
You do not need to worry because the debt collection will be removed from the list of due payments, after a while. Payments of debt are not related to the limits of credit cards. Even if you don’t inform the bank about this, the collection will fall off your credit reports after seven years.
Stop debt collectors from calling by just telling them:
This is true to some extent. There are two methods you can use to tell them to stop calling you. The first method is that the next time they call; you have to tell them to stop calling you at these particular times because you are at a job and the boss does not approve of this. They will stop calling you at those particular times.
The second method you can use is that you should tell them that they are not calling you at a suitable time. These two methods will only stop them from calling you in those instances. If you want to stop them from calling you at all times, you will have to write them a letter of request. After this, they have no legal right to call and inquire about debts.
Debt payments will not improve your credit score:
Yes, this is true. Most people say that if we pay debts on time, our debt score will improve, and it will benefit us financially. However, it is a good practice that pays his debts on time, but he should come out of the misconception that it will increase his credit score. Credit score can be improved if you pay you to have positive transaction history, and you pay your debts on time.
Debt collectors can not put you in jail:
You should not be worried if you receive a letter of complaint from eh debt collectors. Moreover, these debt collecting agencies do not have the legal right to put you in jail. It is also illegal if these debt collecting agencies threaten you, and you can file a complaint against them.
You can not pay the creditor directly:
Most people say that it would be easier for them to pay the creditor rather than paying the debt collector agency. It is not allowed, but it depends on the conditions set by the creditor. Mostly, readers sign a contract with these debt collecting agencies, and so according to that contract, you can only pay the debt collecting agencies. Sometimes, the creditors sell the debt to these collecting agencies, so you have t pay them anyways.
Your wages can not be garnished by debt collectors:
They have to follow a legal procedure before they start to garnish your wages. First of all, they have to win the lawsuit filed against you. If you lose the case and do not pay the debts, the debt collector will reach the court and ask for permission to garnish the wages. Sometimes, deliberately use the wrong address to garnish your wages and send you legal notices at the wrong address. If that happens, you can overturn the judgment against them and win the lawsuit.
The conclusion is that these debt collector agencies do not take matters seriously, and you should not worry too much. However, if a debt collector agency is hired by a bank, you should look for an attorney to win that lawsuit.