8 Myths About Debt Collection Smashed
Hi, my name is Adam Stewart, Debt Collection Expert and owner of Debt Recoveries Australia.
Dealing with debt collectors can be scary for some people due to old myths about debt collectors and how we collect debts. There’s a lot of misinformation about debt collectors: how much we charge, how we collect debts, how to deal with us, and what we can and can’t do when collecting a debt.
If you’ve never used a debt collection service for your business, you may have many preconceived notions or questions about what a debt collection agency does. Debt collection agencies have a negative stigma attached to them, and this is mostly due to the many myths that surround debt collection. Many businesses are afraid to use debt collection agencies to help collect on past due accounts because they’re afraid that it will negatively impact their business.
However, using a debt collection agency can be incredibly beneficial as it allows you to focus on your business while someone else handles the debt collection process.
Here are 8 debt collection myths I would like to clear up:
Debt Collection Myth 1: You gotta be mean and tough to collect debts.
Fact: This is the number one myth that I want to bust wide open. I am proud to call myself a debt collector and I am proud to say I have never yelled at anyone or harassed anyone in order to collect a debt. Ever.
Yes, sometimes, we do have to have some tough conversations, but this is very rare. Yes, we get some debtors who ring us and they are upset, however, that does not mean that we will also get upset. It’s the old saying, “you catch more flies with honey than you do with vinegar”.
Our philosophy is to be kind, courteous and to listen to the debtors. See how we can work together to help them.
Debt Collection Myth 2: Debt collectors continually hassle people who cannot pay.
Fact: One of the first lessons a debt collector learns is that harassment of a consumer is both ineffective and also against the debt collection guidelines. Instead, debt collectors are trained to listen to what consumers say and determine if they actually have the resources to pay the outstanding debt.