Over the years, probably as a result of movies which have misrepresented them, debt collectors have been giving quite a bad reputation, which isn’t entirely just. What many now confuse debt collectors with are loan sharks, who’ll lend you money and then cause damage when it is not repaid. A debt collector however, is very different indeed. A friend of mine works at the Brennan & Clark collection agency and he often tells me absurd things which people have said to him, assuming them to be something that they are not. Ultimately this a legal service which seeks to help lenders and borrowers to resolve their debt, nothing more than that.
The issues arise when someone who owes money ignores the calls which a debt collection agency makes, or the letters that they send. This is a mistake and here is exactly why you should not ignore debt collectors.
They Are Trying To Help
Contrary to what you may believe, a debt collection agency is actually trying to help you. They buy the debt from the original lender at a discounted price, this makes sense for both parties. The debt collection agency will then try to reach you in order to offer you a deal or a better payment plan which you can actually afford. This is the main reason why you should always pay mind to such a company.
It Could Get Worse
If a debt collection agency has tried and tried to get in touch with you and you gave failed to respond, they are entitled to reach out to a judge and get permission to come to the property or to take any goods which you have taken on credit. If you have a debt which is based on your unpaid car finance then they will be perfectly entitled to seek out permission to tow that car away until you have repaid. Imagine the shame of your car being towed away in the middle of the street. Debt collectors will never be able to enter into your property and take things away unlawfully, but there is a great amount of things which they can do to recoup what you owe, and they can do so with a judge’s blessing.
Whilst you will have a strike against your name when your debt is passed to a debt collection agency, this will not be terrible if you are able to resolve your issues with them. If however you completely fail to respond to them and try to bury your head in the sand, there is a very good chance that our credit score will be absolutely destroyed. This may not seem greatly important to you now, but ultimately it is something which you will regret in the future whenever you try to get a mortgage or borrow some money to get you out of a jam. There really is no point in taking this risk, speak with the debt collection agency, put a plan in place and don’t run the risk of making things worse.