Credit Policy for businesses and how to extend credit and manage credit risk

A common complaint bill collectors hear from debtors is that no one cares about us, or our finances or our situation.  Just like someone with a negative attitude, many times debtors place the blame on everyone else but themselves, this includes the bill collector that is trying to collect the debt they owe their creditor.  The bill collector, even if they are as nice as they can be, is immediately considered the evil enemy, just because they are what they are, a bill collector.

Not all bill collectors are evil and break the law but with the stories that have been in the news lately that is the continued perception our media is portraying.  I have not seen one story yet that states not all bill collectors are violating federal and state laws, being unethical or helping a debtor.  You only hear recordings of debt collectors that are breaking the law, swearing at debtors, calling at unusual hours that are not allowed and ex-debt collectors stating that they did break the law; they did try to ruin people’s day or do whatever it took to collect the money.

You don’t hear about the associations that have been trying to change this negative perception of bill collectors or the agencies and collectors that follow the law, help people and do things ethically.  Yes, they do exist! 

Based on this, expect consumer complaints about collection agencies to rise to extreme proportions.  Obviously some agencies operate unlawfully and unethically, this has been going on for many years.  In the last 10 years I know for a fact that there are more associations, more education, more books, magazines and networking going on in the debt collection industry to help educate not only debt collectors but consumers who become delinquent with their bills. 

Another very important point to remember that has not been mentioned is that these collection agencies, whether they are breaking the law or not, are hired by someone to collect a debt.  In my opinion when a creditor or business owner hires a debt collection agency to collect on any past due debts for them, the agency they choose is a reflection of that company.  So if you are being harassed and called at work when you ask not to be, or getting calls at 3am, this is the agency your creditor chose and wants to represent them.  Who is your creditor?  Are they aware that their agency is breaking the law and thus giving them a negative representation? 

If you have a bill collector calling you and breaking the law to try and collect on your past due phone bill, car loan or a credit card debt, look at the creditor. What kind of business hires someone like that?  What kind of business wants to be associated with an agency that treats its customers that way?

Should any of us do business with that type of company? I think not. Let creditors also take responsibility for their actions and the agencies they hire to represent them, their company and their ethics.