In the first three parts of this series I wrote about collections accounts, described how sending unpaid accounts out to an agency helps out a creditor, and described the practice of selling an old debt to a third party collection agency. I spoke about the type of information that a collection company will obtain to utilize in their efforts, and the type of laws that third party collection agencies must follow. I described illegal and legal tactics that debt collection agencies use to collect.

I reminded you that most debt collectors realize that it is imperative to collect on your accounts as soon as possible. Many will ask you why you can’t pay today, and many will attempt to manipulate your emotions or insinuate that you are fiscally irresponsible to upset you into agreeing on a payment.

Another strong arm method utilized by collection agents is to upset a consumer by manipulating their emotions, and then transfer them to an agency supervisor. By this time the debtor might be angry or frustrated and it will be more probable that they would agree to something easier simply to get off the phone. If you find yourself in this situation, try to remain calm throughout the conversation.

Keep in mind that you aren’t talking about a mortgage payment; the debt collector can’t take your house away if you can’t make the payments that they are specifically requesting. Don’t let the collection agency manipulate you into agreeing to something that you cannot afford at the moment or intimidate you into doing what you don’t want to do.

Do your best to remain firm and stick to the terms that both parties agreed on. After working out a payment plan, as with ANY financial decision, confirm your agreement in writing by sending a written plan by certified mail, return receipt requested to ensure delivery and proof that the agency received it.

Rapid Recovery Solution does commercial debt collections and writes articles on medical collection companies. Free reprint avaialable from: Collection Agency Basics Part Four: Tactics A Debt Collector Uses And What To Do After You Have Paid.

Individual phone collectors will be given a portfolio of accounts, and the bulk of their workday, every day, will be spent working them. Debt collectors are subject to frequent performance evaluations and the bulk of their money is earned from personal commission payments. Thus, the size of a debt collector’s paycheck depends on how successful he or she is at collecting from debtors. This factor, coupled with relentless confrontations with angry and sensitive debtors, makes for an extremely high stress job with high employee turnover.

If a collection agent tries to call a consumer and comes into contact with somebody else, they are legally prohibited from informing this person that they are calling about a debt. Each state has its own laws that debt collectors must abide by, and sometimes, the collector can speak to the debtor’s spouse.

If a collection agent gets an answering machine or voicemail, they will usually leave a message, but theoretically someone besides the debtor might hear it. Therefore, the details of the call will not be disclosed, and the tone of the debtor will be apathetic. Collection agencies generally have to provide a toll free number so that it does not cost money for the debtor to return the call.

When the debt collector speaks to a debtor on the phone, they will begin with what is referred to as a “mini Miranda.” Much like your Miranda rights, which tell you that “anything you say can and will be held against you in a court of law,” the mini Miranda informs the debtor that this is in fact an attempt to collect debt, and any information disclosed will be used for that purpose. This is usually what separates a mediocre debt collector from an excellent one. A mediocre collector will often do most of the talking, but a skilled collector develops good listening skills to ferret out important information.

Therefore, debt collection phone calls are generally recorded, and any key information is written down on the debtor’s permanent record. Key information includes anything that could be used to ascertain the probability that they could successfully collect, or if taking legal action could be a good decision. In other words, if the debtor mentions that they are employed, makes mention of assets, or admits that they owe the debt, this is very encouraging for the collector and could be used in future litigation.

Mallory Megan works for Rapid Recovery Solution and writes articles on medical collection agencies Free reprint avaialable from: I Have A Collection Agency On The Phone! What Now?.

In the last article in this series I wrote about how long different marks remain on your credit report. I mentioned that mistakes will be removed immediately, soft inquiries will have no effect, and hard inquiries can hang around on your credit report for two years. Late payments have the capacity to do way more damage.

Despite the fact that some creditors may choose to show you mercy and remove past credit problems if you pay your account immediately, late payments can have an effect on your credit score for seven years. Luckily, these negative marks are common and do less damage to your score than the rest of the marks I will go on to discuss.

With a tax lien comes seven years of bad credit. When you do not pay your income or property taxes when they were due, and the government comes in and takes ownership of your property, you are dealing with a tax lien. Unlike creditors, no matter how fast you settle your tax lien, big brother is annoyed that you made him go out of his way to take your property, and it will stay on your record for seven years.

Foreclosures are equally as damaging and they will be on your credit report for seven years. Foreclosures are looked at as one of the worst negative accounts that can appear on your credit report. In fact, if you do have a foreclosure on your credit history, good luck buying another home unless you are planning to pay for it all in cash.

It’s not the good old days anymore, so never default on those student loans either. Before the administration of President W., student loans generally were forgiven if they were declared when someone filed for bankruptcy. Now times have changed, so it’s crucial to pay your student loan debts. After 270 days of nonpayment, defaulting occurs, and before the loan defaults, you can bet your life that you will be the unlucky recipient of a whole slew of late payment fees.

The last, and most serious negative mark that can go on your credit report is bankruptcy. Bankruptcy will stay on your record for ten years, and instead of having a creditor pull your report, you might as well get in contact with them and say “I am fiscally irresponsible and will be that way for the next ten years.” Filing for bankruptcy can put a damper on your ability to get a new car, any type of new credit or a new place to live. So watch your credit report, or you might end up living with that rude mother in law I wrote about in article one.

Mallory Megan works for Rapid Recovery Solution and writes articles on commercial collection agencies. Unique version for reprint here: How Long Will A Negative Mark Stay On Your Credit Report Part Two.