How to Protect Yourself From Criminal Debt Collectors

I'd like to point out that some of what's stated above is not accurate, and gives readers the impression that ALL debt collectors are criminal, or operate in the same way. For instance,

"...the method of operation for debt collectors is essentially the same: The collector pays a company you owe money to—typically a bank—to then have the ability to collect on your debt."

This is not true. Typically, the method of operation for a debt collector is that they are selected by the bank or other creditor after a rigorous vetting process (some creditors are better than others at this, and should be held accountable for who they hire; just like one can end up hiring an unscrupulous plummer -- they come in all industries), and they are paid on contingency. The "pennies on the dollar" concept you hear so often does exist, but it is NOT the typical method of operation. And yes, a collector could operate criminally in order to earn their fee, but they wouldn't get the work the next time.

Most collectors are interested in running legitimate businesses, they send their kids to school, they volunteer in the community, etc. just like everyone else. (http://www.insidearm.com/category/doing-it-right/)

The writer (and Bill Bartmann) also seem to suggest that the best course of action in all cases is to write a letter telling the company to stop contacting you. "...the company is obligated by law to stop unless it sues you." Right. so... forcing a company to sue you is clearly way better than trying to discuss by phone.

If you are dealing with a criminal who is verbally assaulting you, okay. But it's irresponsible to suggest that this is the best way to deal with all debt collection calls. Your next article will blame debt collectors for clogging the courts.

Stephanie Eidelman of MD 12:01PM May 11, 2012