How To Stop A Third-Party Collector In His Tracks
Posted: Monday, September 14, 2009
by Jim Anderson
Weddings That Last
I went through a really tough time when I lost a very good business in 2001 due to a fundamental change in my target market. This means I got to meet these sharks in suits first hand. They would call me and threaten to sweep my accounts and repossess assets with a court order, and they didn't have to sue me. I had credit card collectors calling my parents and trying to get them to force me to pay them.
I eventually lost, but I learned a lot about the system and how these snakes operate. The courts favor them, and they don't have to prove a thing, they can win their case simply on an accusation. The key is getting the defendant to say something like "I don't owe this debt". That is a statement of fact, and before they have to do anything else, you have to prove that statement of fact as true. Even if you don't owe the debt, it is pretty hard to prove a negative according to the rules of evidence in a court of law. If you can't prove it, they win. So they win 99.99% of the time, right or wrong.
So, here is what you have to do. You have to play their game. It starts in the first contact. Now, in my case, Citibank was the original lender so this doesn't work with them. This tactic is for the third-party collectors. From the very first contact, you have to refrain from making any statement of fact, or any claim. All you do is ask questions. They don't like to answer questions, they only want to ask them. So on the phone, you have a very short conversation. Simply ask for their full name and social security number so you can be sure you are suing the right person. They usually hang up or ignore the question. If it is in a collection letter, you simply respond with a letter of your own that forms a contract by non-action, asking them to send you proof of the debt owed to them. They can't, they can only verify you owe someone else the debt. By not sending you the proof, you state in the letter that they agree the matter is settled.
You can't take this lightly, you have to be very specific in what you ask for. I have a letter that does this which can be used to customize your own letter that comes with my book. After the stated waiting period in the letter, you seal the deal with a follow up letter. Keep this in your legal file, and if you get served with a lawsuit later, you have proof now that you don't owe them anything. They know this, so they will likely resell the debt to another third party collector, with whom you repeat the process. Every third party collector I used this tactic on stopped all communication and I never heard from them again.
I'm not mentioning this because I want to help you keep from paying your debts, but since the system is so unforgiving and harsh on people in financial trouble, this is a way to buy time until you can find the money to settle your debt with the original creditor. Pay your debts, but don't let the sharks eat you alive before you can. For more tips on dealing with credit card debt, visit my website.
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Top-level comments on this article: (1 total)Hi Jim, as a Credit Manager, I have to chuckle, I could not give this advice, since it is my job to collect the money, but I won't say you are off the mark. If collectors were not such arrogant meanies, these tactics would not be necessary. I personally work with everyone I speak to. Good stuff here. I went to your website and was happy to see you offer your course for free. Everyone deserves a second chance and if their intent is to pay their debt when they can, then they need to proceed in a manner that will give them time to do just that. Glad you came to my article, it may have taken me much longer to come across yours. :-)Please log in to respond to this comment.I worked in collections myself, with GMAC - repossessing cars - in my first job out of college. I learned a lot about what goes on behind the scenes. Later, I also learned from the other side when my business went through a bad time in 2001. I really want to help people struggling with this problem because I have come to realize the cultural significance of this problem. The Bible teaches more about money than people realize, and despite what many feel, the truth there is very relevant today. Thanks for your comment.Please log in to respond to this comment.
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