Myths About Debt Collections

Millions of people in America have debt that they are unable to pay. When debt goes unpaid for a certain amount of time, it is usually turned over to collections. There are several myths about debt collectors. It is important to dispel these myths.

Myth: The Bill Will be Removed From my Credit Report After I Pay it 

Fact: Paying the bill will not necessarily remove the past-due account from your credit report. It will show on your credit report as a paid account. However, it can take up to seven years to remove the account from your credit report.

Myth: Debt Collectors Will Threaten and Harass You 

Fact: The Fair Debt Collection Practices forbids debt collectors from threatening and harassing you. A debt collector is trained to listen to your concerns and find out why your account is past-due. They understand that life happens, and their job is to help you get back on the right track.

Myth: You do not Have to Pay a Charged off Account 

Fact: When a company charges off an account, they simply write it off as a loss. However, this does not mean that you do not have to pay off the account. Your credit report will show that you have a charged off account.

Myth: Debt Collectors Only Help People who are Destitute 

Fact: Some people fall behind on a bill because they do not have the money to pay it. However, there are a variety of other reasons that people can fall behind on bills. For example, some people forget about the bills. Other people did not receive their bill because they changed addresses. Debt collectors are designed to help everyone regardless of their situation.

Myth: I can Avoid the Debt Collector 

Fact: Ignoring the debt collector will not make your debt go away. In fact, this will only make your situation worse. You can send a letter asking the debt collector to stop calling you. However, they will continue to send you letters in the mail.

Myth: Debt Collectors are bad People 

Fact: Debt collectors are committed to delivering professional and excellent service. There are bad apples in every profession. However, correspondence between the debt collectors and clients are monitored. That is why if debt collectors are caught doing something unethical, then they will lose their job.

Myth: Debt Collectors can Garnish Your Wages 

Fact: There are several things that have to take place before your wages can be garnished. They must sue you and win the judgment. If they win the judgment, then you will have to pay. The debt collector must go back to court and ask for permission to garnish your wages. They are not allowed to garnish your wages without the court’s permission.

Myth: A Debt Collector can put you in Jail 

Fact: Debt collectors do not have the authority to put you in jail. They are not even allowed to tell you that you can go to jail for not paying a debt. Visit this website if you need help with your debt or want to learn more about debt collection.