What Should You Know If You Have Debts In Collections?

Having debts in the collection primarily means that a third party is pursuing you to retrieve payments for your debts on behalf of your creditors. Debt collection is a process that gives debtors certain rights that debt collection agencies must respect. While the debt shown in the collection can negatively impact your credit score, the severity of the impact reduces over time. 

What does it mean to have debt in collections?

When you have a debt in collection and receive a call/ notice from a debt collector, it indicates that your original creditor has redirected the debt to a debt collection agency or a third party to collect it. Most creditors generally pass on a few debts to a professional debt collection agency, including mortgages, auto loans, credit card debts, and student loans. 

However, it is essential to understand that most lenders usually try to collect the debt themselves before writing it off and outsourcing the task to the other party. The past-due accounts will not be charged off and sent to the collection agency until they become aged debts. 

Thus, if you have a debt that has passed the due date and are approached by a person who claims to be a debt collector, you should be careful of the fraudsters that masquerade as debt collectors. 

Here are the most typical red flags indicating that you are dealing with a scammer instead of an authorized debt collector:

They will withhold information

A legitimate debt collection agency will always provide you with all the relevant information you need to verify a debt.

They will pressurize you to pay money by money transfer or a prepaid card

Most scammers push borrowers to use these payment methods, as they are more challenging to track. 

They will threaten you

A scammer may also try to bully a payment out of you by threatening you with jail time or pretending to work for the government. They may also threaten you by saying that they will leak your debt details to your family, friends, or employers. 

They will ask for a lot of irrelevant and personal information

NEVER share your bank account number, social security number, or other sensitive details over the phone to a debt collector until their legitimacy is verified. 

They will call at unofficial hours

If you notice calls from a person claiming to be working for a debt collection agency before or after 8 a.m. to 9 p.m., it is a high possibility that you may be dealing with a scammer. 

Above all, do not rush to make payments to a debt collector if you cannot recognize the debt they are trying to retrieve. However, if you are worried that you may be dealing with a scammer, consider asking for the original creditor’s company name and contact details. This will allow you to check with your creditor if they have assigned a debt collector to retrieve the collections or not.

About us

Are you looking for a professional debt collection agency to help you conduct hassle-free collection of your business debts? Taurus Collections (UK) Ltd. is here to assist! We follow an easy, straightforward method to support our clients with debt collection services by providing utmost customer satisfaction while dealing with their debtors. Our services include:

Use our Late Payment Calculator to know your remaining credit amount. Call us at 0800 069 8777 or 01332 565 350 (Derby) or send your questions to enquiries@tauruscollections.com. Stay tuned on Facebook, Instagram, and Twitter.