Debt Collector tips...

Ok, I have been a debt collector for a little over a year now. QUITE the interesting calls I get, I will tel lyou that much. I have learned some stuff that may help some people out in future collection situations.

Here's a rough "list" of stuff:

1.) If the collector "puts you on hold" and there is no hold music, there is a good chance you are just on mute and they can hear everything you say.

2.) Some clients give the collectors settlement authority, sometimes from 80% off all the way to 50% off. Just ask if there is any way you could pay less or straight up ask if they have any settlement authority.

3.) If sending payments or documents to the collection agency, make sure to follow there steps EXACTLY as told. I swear this is used to keep the disputes from not being cleared up.... "Well, did you put the file number at the top of the documents you sent? No? Well, you'll have to send it again."

4.) If there is a fee for making a payment over the phone, ask if there is a way to avoid the fee, some kind of automated system possibly.

5.) There are currently 7 states that 3rd party collection agencies can't charge a fee for taking payments over the phone. CO, MA, MN, WI, IL...... Unfortunatly, I can't remember the rest

6.) If you setup a payment plan, stick with it. Because if it breaks, more than likely they wont be able to set it up for the same ammount and will request a higher payment plan.

7.) Just because it's in collections, doesn't mean it is already on your credit report. Some companies will give the actual agency the power to report it to the credit bureau, so make sure and ask.

8.) If the agency says that they report to the credit bureau but the account has not been reported at the time, the only way to 100% avoid it being reported is to pay it in full right then and there. Setting up a payment plan will NOT hold it from being reported.

Now, for some more specific to what I handle (car insurance)...

1.) When canceling a policy, you must do it at the END of the policy term to avoid what they call an "earned premium for early cancelation". This results in 90% of calls I do.

2.) When canceling a policy, DO IT IN WRITING. Make a copy of it, possibly even have the agent sign and date it.

3.) If you just switch insurance companies, the other company may continue to cover you (which is overlapping insurance). You need to make sure they have proof of your new insurance to stop coverage.

Thats about it for now.