The Evolution Of Debt Collection

You might be surprised to learn that , despite the increase in personal debt burdens over the last few years, being a debt collector is not as lucrative as it once was. In fact, debt collection is a tough business that faces many obstacles on a daily basis. As people become more aware of their rights as debtors, collectors have a more difficult time obtaining payments. Bankruptcy filings and credit negotiations have significantly slowed the profits for debt collection companies.

How Times Change

With the advancement in technology comes with it an advancement in the way businesses are run. Debt collection agencies are no different. Since the FTC has regulations in place to prevent collectors from contacting consumers during certain hours and in certain ways, the companies are developing new ways of collecting payments.

Most people have become savvy enough to avoid debt collection on their house phone by using caller id or eliminating their home phone line. These days, it isn’t uncommon for a debt collector to send a text or call your cell phone to collect on a debt. Although it might be easy enough to spot a call from a creditor on your cell phone’s caller id, their persistent nature being literally in your pocket all day can become quite a nuisance.

What Can Be Done

The  best thing to do to stop annoying collection calls is to develop a debt repayment plan with your creditor directly. When the debt collector calls, answer it and inform them of your plan with the creditor. You  may also need to have your creditor contact the debt collection company and have your name removed from their list.