Separating the Facts and Myths of Debt Collection

Understanding the truth behind what debt collection entails, as well as the people who work in such agencies, is important both for the businesses that hire them and the consumer.

It is common for business organizations to encounter commercial debt collection issues. When the task of recovering outstanding obligations becomes hard for companies to handle, the logical alternative is to contract a professional collector. The third-party service provider has the capability to enforce collections to the advantage of its client. It is important to identify the facts and myths of debt recovery for the benefit of business proprietors.

The Falsehoods and Truths about Debt Collection


  • Harassment of debtors is not only a futile move. It is also prohibited under the Fair Debt Collection Practices Act. What collectors should practice is to pay attention to the line of reasoning of consumers and find out if borrowers have the means to settle unpaid debts.
  • There is a big distinction between in-house collectors and third-party collectors. Internal collectors are more of credit grantors. On the other hand, hired professional collectors are employed by licensed firms. The FDCPA and other federal laws cover all third-party collectors but regulations for in-house collectors apply only under specific circumstances.
  • Competent debt collectors have been fully trained and have the capacity to understand the motives of borrowers and can communicate with these persons more effectively than ordinary people. Majority of proficient agents are able to get the job done.
  • Collectors hardly ever go to the place of borrowers for collection purposes. Instead, these people make use of contemporary technology in reaching out to people and companies that owe money to other individuals and organizations.
  • The reality is that collection companies do not convince debtors to file for bankruptcy. This will just mean that money obligations to creditors are eliminated. The responsibility of a debt collection agency is not only to collect debt but give advice as well. These professionals are aware that people with financial difficulties need guidance more than lawsuits and threats.
  • It is not a case of collectors versus the borrowers. These service providers are hired to resolve the problem of unsettled liabilities and not to quarrel with consumers. Although these collectors come from various backgrounds, these experts receive extensive training on how to manage these concerns.
  • Collectors know that debtors come from different sectors of society so these individuals understand the proper way of treating a person and dealing with specific situations.


  • The collection agency makes life miserable for persons or companies that find it hard to pay debts promptly.
  • Almost all of collection outfits are the same and hire employees who are nasty in order to be effective in performing their duties.
  • Collectors make sure that the poor consumer or small business owner is pushed towards insolvency.
  • The primary aim of collectors is to foster discord among consumers and business entities. Economic failure is tantamount to the growth of the collection business.
  • Debt collectors are different people who take advantage of the situation of individuals and companies.

These collectors have a job to perform so it is not proper to pass judgment on them. Rather, the best way to gauge their performance and personality is to observe the behavior of these people.