5 Myths and Facts about Debt Collectors

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Most people see debt collectors as financial grim reapers. They’re persistent, they’re unavoidable, and they’ll sooner or later take your money. Whether it be through regular payments, or through threat of law…But debt collectors aren’t that intimidating. In fact, debt collectors are just employees, ensuring that cash flow goes to its honest owners. And being employees themselves, they have certain limits on how to interact with you, the same way you have obligations towards them. We’ll talk more about that below. Through this article, we’ll dismantle a few myths and mention a few facts about debt collectors. Hopefully, this’ll help you learn how to interact with one – if you have to.

Myth #1: Whatever the Debtor Asks me to Pay Should be Paid…

Wrong. Debtors don’t have any power to force payments from you, unless you’re seriously slacking…

The Facts.

Some debtors can have their debt calculations and records go wrong. After all, a debt can be sold and resold so many times, where you may not be the collection target anymore…To avoid such situations, you should keep records of the debt yourself. You should be up-to-date on who owns what debt (while providing documented evidence).

Myth #2: Debt Collectors Can Threaten Jail Time if I Fail to Pay…

Wrong. A debt collector does not have the power to threaten you with jail time for failed payments.

The Facts.

It’s actually illegal for debt collectors to scare you with jail time. This considered as a form of harassment.

However, there are situations where a collector can take you to court for failed payments.

This depends on the country you’re in.

For example, debt collectors in London can drag you to court for unpaid child support. So that’s something to watch out for…There’s also another fact you should know about related to harassment…

A debt collector has no right to treat you in a demeaning manner to demand payments.

Remember, a debt collector is an employee that works for an agency. And they must represent that company, while respecting your individual rights.

Thus, a debt collector cannot talk down to you. They must treat you with respect while demanding payments.

Myth #3: Ignoring my Debt Makes it Disappear.


If that were true, then virtually all debt would be free money. And that’s simply not going to happen.

The Facts.

The debts you wrack up and ignore will be listed on your credit score.

This’ll damage your ability to take up debts for other uses in life. For example, you may not be able to get a mortgage for property.

You may be refused borrowing for a new car.

And many credit card companies might close their doors to you. This’ll cripple your financial sources severely, especially if you’re a business.

Also, do note that that businesses you owe money will keep records of the unpaid debt. If you ever plan on starting an account with that company again, then you’ve got to pay back the old debt.

Myth #4: A Debt Collector Can Cut My Wages If I Fail to Pay…

Wrong. This can only happen with a court order, and in specific situations.

The Facts.

Debt collectors in London cannot cut your wage to pay a debt, unless it’s for:

  • County Court Judgments.
  • Unpaid Maintenance Fees.

County court judgments are the court orders we just mentioned. And such orders are issued if you do not respond at all to your debt collector…

As for unpaid maintenance fees, those apply to family alimonies. For example, they include child support, and the living fees of your ex-partner.

Those are only legal situations where your wage can be cut.

Myth #5: A Partial Payment Will Get the Collector Off My Back.

Wrong. A single partial payment won’t stop a debt collector

The Facts.

A debt collector will only chase you for debt if you’re failing payments.

In fact, if you’re responsible with payments, and are punctual, you usually won’t hear of any collectors.

So a single partial payment is enough. You’ve got to commit to all payments listed in the contract you signed with the listed company.

A Final Word.

Debt collectors are accountability employees. The show up when you don’t pay, and they ensure that you pay…

They’re necessary for the economy. And they’re definitely necessary to ensure that debt isn’t free money.

If you’re a business or individual wanting to learn about debt, we recommend you search “AR Legal Debt Collectors.”

This’ll give you information on some of the best collectors in London!


August 2022