Rich,

Wasn't aware that was your document until reading your post. Even after the links appeared, I was still dealing with other items on my plate today so couldn't verify the source first hand.

FTR: I'm not faulting all of your logic, but you're right, in a [albeit somewhat frustrating] way, I had some medical "leverage" (and thus, time on my hands) in my corner through this whole process. After all, who really wants to initiate litigation when the outcome is 90% known? I imagine there are still a few companies that would, but fortunately for me they weren't compelled to try with me.

I credit a few people met on this site (along with the site owner) for helping me realize the strength I had within to tolerate and battle the C/A's persistent efforts. I suppose in a sense that's why I feel compelled to give a little back to the newbie’s seeking guidance. Heck, we are all armed with an opinion, so I agree it's up to each individual to determine which is the best route for their own situation.

P.S. Monty, why is it when I hit "Back to my last post" after posting a msg, I'm whipped back to the summary page? Loose-end that needs to be looked into?

Note: Just tried again, and this time I was brought back here... Guess there is a bug floating around in the code.

OC,

The intent of my article was to illustrate how a bill collector often stretches the truth.

I also subscribe to the debt camp that advocates paying bills (payments/full payment/settlement) or bankruptcy if you are too far gone. Your method isn't that much different and it seems to be working well for you, so that’s awesome too.

We’ve learned here that the vast majority of people dealing with debt just don’t possess your level of understanding of the collection cycle nor would they have the toughness to survive the debt collection efforts for several years while that limitation period passes so you can try to negotiate from a stronger position.

I guess for some people it's easier to file for bankruptcy then settle their debts. If all debtors had our knowledge, the collection industry would go out of business.

"I never stated anything"

By the way the article is written, and because you had neglected to post your source of reference, this early-in statement: "From my experience less ..." would lead a person (albeit newbie to this site) to conclude that YOU compiled the document.

In the end... My only "beef" with the article pertains to suggesting that a person simply toss in the towel and declare bankruptcy early in the game. To each their own, but when I reflect back on my experiences over the past few years, I’m very glad I chose the route I took. No bankruptcy’s are on my record, and I control when these “non-compassionate” firms will now receive any funds - and most likely on what terms, too.

Pulling ahead when in a rough predicament is typically about leverage; and thus, building a position up where one has the bulk of it. After all, that's what the C/A's try and accomplish when they ask for your personal information, etc.. So why not work them at their own game – this is assuming one has the time, self-interest, and, existing leverage to spare?

Ottawa Chap,

I never stated anything. If you have a beef with the article, take it up with the person that wrote it.

http://www.articlesbase.com/debt-consolidation-articles/bill-collectors-the-7-biggest-lies-exposed-554932.html

Thanks Monty.

http://www.articlesbase.com/debt-consolidation-articles/bill-collectors-the-7-biggest-lies-exposed-554932.html

Joe, perhaps you’d care to share the link from where you recycled this post from?

As it sits right now, if you’re going to lay claim to compiling this post, allow me to inject a personal view then:

“You” Said:

“From my experience less then 2% of all debts listed to a collection agency ever result in formal legal proceedings…..

The only way to stop the collection activity is to pay the bill or go bankrupt. If you can pay the bills in full, do so as soon as possible.”

Wrong dude! Another option (from my Ontario experience) to stop collection activity, is to simply make it impossible for a C/A or bank to locate you and then use the laws in place against them. A quick review of my posts will show a person how that can be done.

I’m not suggesting that people avoid their responsibilities, however, if an organization is unwilling to work with [reasonable] a person who’s facing financial hardships, then they (the bank) are simply asking for additional pain. Heck if the matter goes to legal, there (in Ontario) is a mandatory mediation conference that takes place prior to the matter even hitting the court room. At the end of the day, this all adds up to additional costs that the bank (or whomever) will have to incur simply because they opted out of an earlier reasonable proposal.

1. I am from the Legal Department and you are being sued.

From my experience less then 2% of all debts listed to a collection agency ever result in formal legal proceedings and in most cases legal costs required to initiate a lawsuit have to be advanced by the collection agency. From a business perspective, it makes no sense to throw good money after bad hoping to recover the legal costs and the debt if you do not have enough assets available to satisfy the judgment being sought after. It's just not worth it to the collection agency. Bill collectors use the "legal department" threat only because it is scary and most people don't know better. The fact is that most bill collectors sit in a tiny 3"x 3" cubicle and pretend to be someone they really aren't on the phone.

2. I am going to garnish your pay cheque.

In order to get any piece of your pay cheque, the bill collector needs a judgment from a court in their favour but the collectors will not seek a judgment unless they have reason to believe that you have enough assets to satisfy a judgment. Pursuant to Section 7(2) of the Wages Act (Ontario), no more than 20% of your wages may be garnished. A creditor can bring a motion to increase the amount of wages that may be garnished but a debtor also has the right to bring a motion to have such amount decreased. I have heard Collectors tell people they will garnish 50% of their pay but the truth is that even if they get a judgment, garnishments rarely exceed 15-20% of pay. Again they only use the threat because it scares people and most don't know any better.

3. If I don't have payment by 4 p.m. today, we are (Insert threat here).

Bill collectors are paid a commission to do their job and so are the managers that are breathing down their necks in order to hit their targets. Some aggressive bill collectors can make six figures annually if they push people hard enough. They will tell you anything if they feel that it will result in a payment and a bigger commission cheque for them.

4. Pay in full, monthly payments are not an option.

They want full payment from you because they make more money off you when you pay in full. Payments are always an option; in most cases going directly to the creditor will get you a monthly payment plan. It won't fix your credit but you will at least be able to stop the demand for full payment.

5. Collectors can call you as much as they like.

Pursuant to Section 22(6) of R.R.O. 1990, Regulation 74 to the Collection Agencies Act (Ontario), there are restrictions on the frequency of calls that collection agencies can make to you. Despite what they may tell you a bill collector cannot harass you. If you register a letter requesting the collection agency to communicate with only in writing the calls should stop otherwise you can escalate their behavior to their ombudsman or provincial ministry to take further steps.

6. Collectors can call and harass your family, friends and neighbours.

A collection agency can only contact a third party to confirm your home address and telephone number or your employer to confirm your employment, title and business address; that's it (Section 22(3) of Regulation 74 to the Collection Agencies Act). If the collector divulges details about the debt or tries to embarrass you, there are steps you can take to deal with and stop this behavior.

7. Bill collectors can talk to you any way they feel.

Bill collectors can be obnoxious and rude; many think that insulting people will get the debt paid. Collection laws prevent this type of behavior reoccurring if you escalate it and deal with the issue. If you feel that they have mistreated you by using profanity, intimidating or coercive language, you can certainly stop it. They will most certainly deny the activity so a tape recorded conversation or voice message will be your best friend here.

Collection agencies and bill collectors have a bad reputation because they are a business like any other whose goal is to generate profits for its shareholders; its their job to push you hard to pay. There are ways to deal with the debt and their behavior but it takes time and a certain investment in researching your rights. Try not to avoid the debt but find a way of dealing with it. The only way to stop the collection activity is to pay the bill or go bankrupt. If you can pay the bills in full, do so as soon as possible.

If payment of your bills is not an option due to extreme financial hardship, you may wish to explore bankruptcy by consulting with a Trustee in your local yellow pages. Going bankrupt will most certainly deal with the debt but since it's detrimental to your credit rating, it should only be used as a last resort. Also, a Trustee is a court appointed agent for your creditors so even though you pay them for their service, the Trustee is looking after your creditors' best interests. Your debts are wiped out but so are most of your assets subject to certain limited exceptions and your credit report shows the effect for 7-10 years.

Debt settlement should be considered as an alternative to bankruptcy since it is quickly becoming one of the newest and best options in Canada to retire debt quickly and ethically. A debt settlement company will act as your agent, and negotiate a settlement with your creditors. Once the settlement is paid, the balance is written off and your credit report is updated to reflect that the debt is finalized. The time frame to settle debt can be anywhere from 1 month to 36 months depending on your ability. This is often the least expensive, least damaging to your credit and the fastest path to debt freedom.

Remember that bill collectors make a living off of trying to scare and intimidate people so they can earn a big commission cheque. Consider the source when they call and don't let bill collectors push you around, you have rights and can fight back and win!

http://www.articlesbase.com/debt-consolidation-articles/bill-collectors-the-7-biggest-lies-exposed-554932.html