Debt collection companies do not enjoy a good reputation. However, this is mainly due to the fact that we have a misconception about their activities. That is why in today’s article we refute the 4 most popular myths related to debt collection companies.
The debt collector and bailiff have the same rights
To begin with, let’s look at who the debt collector is and who the bailiff is. First of all, the former acts on behalf of the creditor, while the bailiff is a public official who works at the district court. This means that when debt is dealt with by a bailiff, it does so at the court’s request. In this case, the debtor should immediately pay his debts.
In the case of a debt collection company, the case looks slightly different. First of all, she acts as an intermediary between the debtor and the creditor who was unable to recover the money owed to him or did not want to do it alone. Contact of the debt collector with the debtor allows the latter to amicably pay off the debt and to set an optimal debt recovery plan.
Avoid contact with a debt collector
Although we can often come across such advice on the Internet, it usually leads to major problems. As we mentioned earlier, a debt collection company can help the debtor in developing a debt repayment plan. Thanks to this, the person who defaults with the return of the obligation does not fall into a spiral of debts and even greater financial problems.
In addition, avoiding contact with the debt collector may lead to the debtor being charged with additional costs that he could easily avoid. Simply put, if the debt from amicable debt goes to bailiff’s execution, the costs of its servicing increase. In addition, thanks to cooperation with the debt collector, the debtor can negotiate e.g. redemption of part of the interest. In the case of a bailiff, this solution should be forgotten.
The debt collector may force the debtor to pay his debts
As we mentioned earlier, the debt collector is an intermediary between the creditor and the debtor. His tasks include primarily negotiating between both parties and bringing about amicable debt repayment. And this means that the return of the commitment must be voluntary. In addition, it is worth remembering that a debt collection company simply has no legal possibilities to order or force the debtor to give back the overdue money.
Consequently, the debt collector cannot threaten or intimidate the debtor. This is certainly not the case for professional and legally operating debt collection companies. Unfortunately, such measures are used by pseudo-debt collection companies, which is why erroneous opinions about real debt collectors are often taken.
However, it is worth remembering that illegal activities of pseudo-debt collection companies should be reported. The Polish Union of Debt Management (PZZW) operates in our country, which includes honest debt collection companies. If a debtor company associated with the PZZW reports to the debtor, he can be sure that the matter of his commitment will be resolved in a fully professional, honest and amicable way.
Windykator may contact the debtor’s family or friends and provide them with information about the debt
The debt collector cannot talk about the debt with a person other than the debtor himself. This applies to both spouses and parents of the indebted person, not to mention friends or colleagues. Professional debt collection companies, especially in the case of telephone calls, thoroughly verify the identity of the callers to make sure that they do not violate the rights and reputation of the debtor.
As you can see, the work of a debt collector and professional debt collection companies is far from what is commonly said about them. Cooperation with such a company works for the benefit of both the creditor and the debtor. The first one can recover money faster, and the second one can count on amicable settlement of the case, which will allow him to avoid a spiral of debts and serious financial problems.
Check out our ranking of debt collection companies if you are considering using the debt collection service.