Myths about Consumer Debt Collection

Myths about Consumer Debt Collection

Today, more than 30 million consumers have delinquent or defaulted accounts under collection, averaging $1,400 each. Here are a few dispelled myths concerning the reality of consumer debt collection:

Myth 1: Avoiding a debt collector makes the debt go away. Consumers who ask debt collectors to stop contact or choose not to respond to calls or letters often mistakenly believe it means their debt has been eliminated. Avoiding contact will not erase a debt. Instead, consumers should communicate with collectors to discuss the account, verify its accuracy and work on a plan for resolution. If consumers don't owe the debt, communicating with collectors can help put a stop to calls or letters.

Myth 2: Consumers don't have rights in the recovery of past due accounts. The collection of consumer debt is one of the most heavily regulated industries in the United States. Consumers have important rights under a number of federal and state laws. For more information about what to do if contacted by a debt collector please visit www.askdoctordebt.org.

Myth 3: All debt collectors are bad. Just as "all consumers" aren't the same, neither are all debt collectors. Most are committed to professionalism, training and customer service. By working with the right professional, you can start making payments or create a plan of action going forward.

Myth 4: It is boom time for debt collectors. It's no secret that consumers have struggled financially in the current economy. Despite an increase in defaults and delinquency, the inability of consumers to repay rightfully owed debts trickles down to those charged with their recovery.

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