Rambling

Yesterday a Debt Collection Agency rang me, no surprise there.  This time they threatened to make me bankrupt if I didn’t the utility bill belonging to the previous occupant of my house.

I told them to go ahead and put the phone down.  I know they can’t make me bankrupt, or force me to pay a debt incurred by the previous occupant of me house.

However, I got to thinking what if the debt was mine and I couldn’t pay it.  So I did some digging and sought advice from The Professionals.  Professional Debt Advisors that is, not Bodie and Doyle from the 70’s TV series.

I was told that it would cost them between £1,500 and £2,000 to make me bankrupt.  Unless I have assets which the courts would force me to sell, they would not get any of their money bank after I was made bankrupt.  So, unless I have a house with equity in it, a Ferrari, or something else of real value then they won’t get their money back, let alone any money towards the debt.

So, if a company is threatening to make you bankrupt and you don’t have goods that can be sold to pay your debts don’t worry as it’s probably just an empty threat.

Of course you should still seek professional advice.  Give them the details of everything you own, owe and earn and they can give you accurate advice.

This post is not meant to be advice to anyone, just to point people in the right direction.

As I have said previously, if you are in debt and having difficulty meeting your payments then you need professional help. You can get very good advice from free sites, run by charities and government agencies, but when it comes to Debt Management Plans, Individual Voluntary Arrangements (IVAs) and Debt Consolidation you need the professionals.

Thankfully, I have not been in the situation where I need the services of these professionals, but a friend has highly recommended The Debt Line.

What ever the level of your debt The Debt Line will be able to advise you of the best course of action, and help you every step of the way.

If you have debts of less than £15,000 then they can help you with a Debt Management Plan. If your debts are more than £15,000 then they will assist you with an Individual Voluntary Arrangements (IVA).

You can visit their web site and have a look around. On the site you will be able to make an application or simply ask them to give you a ring. Just stick your telephone number etc. in the boxes and tell them what time is best for you and they will give you a call.

Obviously, if you make an online application, or ask them to call you, you should have all your debt details to hand. You should also have a list of your income and expenditure too, so they can work out what money you have left to service your debts.

I know dealing with your problems can be difficult, and sometimes sticking your head in the sand sound like a good idea. But sooner or later you will have to take that first step and start dealing with your debts. Trust me, once you have taken the first step you will feel better.

Are you being harassed by a Debt Collection Agency over the phone? If you are you will know that they can bully you, lie to you, claim they have more powers than they really have and use all manner of tricks to get you to pay. Even if it is for a debt that is not yours!

If this is happening to you then there are some things you should know about Debt Collection Agencies. They have no powers what so ever, they are not bailiffs and can not take your possessions. Nor can they send a real bailiff to your house, only the courts can do that.

You should also know that the person who is calling you is probably a low paid worker who is working from a script. They are not the brightest people, but their wage depends on getting money out of you, so they will say just about anything to get you to pay.

The best way to deal with them is to tell them you will only deal with them via letter and put the phone down. They won’t bully you, threaten you, make false claims about their powers or anything else underhand in a letter.

However, if you must talk to them then there are several techniques you can use to beat them.

Who are you?

Due to the data Protection Act they can not discuss your debts with anyone but you. Therefore they have to verify your identity before starting the call. They do this by asking you certain “security questions”, things like your mother’s maiden name and your date of birth. If you don’t give them this information they can’t verify that it is really you they are talking to. So if you don’t answer those questions then they can’t continue.

You can also turn this on its head and gain the advantage over them. When they ask what your date of birth is you reply with “What is yours?” They will say they need to verify who you are, and you say that you need to verify who they are before you will talk to them.

Normally this will stump them and they will hang up, but you may just get one who will give you this information. Of course you will not know if the date of birth or mother’s maiden name they give you is correct, but that doesn’t matter. If they do answer your “security questions” then your last “security question” should be “What is the third, fifth and seventh letter of the password?” Of course there is no password, but they don’t know that so they can’t answer the question. Even if they do supply an answer you can say it is wrong and that you can’t talk to them as they don’t know the password.

Just say no!

The people who phone you from the Debt Collection Agency have only one agenda, to get you to say yes. Yes you owe the money, yes you can make the payments and yes you will make the payments. To combat this you continually say the opposite word, “no”. Every time you answer them you begin with the word “no”, even if it means you don’t make sense.

“Is your name Joe Bloggs?” “No, it’s Joe Bloggs” There will be more times when it sounds right than wrong, so don’t worry. The point is the person on the other end has only one goal, to get you to say yes. By continually saying no to everything he/she says, you drum into them that you aren’t going to say yes. Eventually they will put the phone down and scream “Does that person know any other words but NO?”

Be distracted!

Another good way to get the upper hand with the caller from the Debt Collection Agency is to always be distracted. You pick a subject and every time they ask you something you say you are not sure/don’t know, mention something about your subject then ask them a question about it.

Lets pick Tomato Plants. The man, or woman from the Debt Collection Agency rings and they ask you if you agree you owe the debt, you reply “I don’t know, to be honest I’m more worried about my tomato plants, do you know anything about tomato plants?

They ask if you can pay the debt and you reply “I don’t know, these tomato plants have got me worried, they just aren’t growing like they should. Do you think I should increase the fertiliser?”

They ask if you are going to make a payment and you answer “I’m not sure, these tomato plants are organic. Will they still be organic if I put insecticide on them?”

This technique is guaranteed to make them give up as they soon realise that you have no interest in what they are saying. Remember that they have no powers to make you pay, so they rely on bullying you into paying. If they can’t get you interested in what they are saying they can’t bully you.

Are you in debt and being harassed over the phone by your bank or a debt collection agency?

If you are you can fight back by recording the calls and keep a log of the date/time of the call. These companies are not allowed to harass you, but we all know some of them do.  Now you don’t have to put up with it, you can fight back. 

First write them a letter telling them you will not discuss anything with them over the phone, they must deal with you in writing only.  Then if they continue to phone you, you can record the calls.  A selection of recording devices can be found here or a selection of telephone recorders can be found here. If you have a speaker phone these will be fine, if not you will have to hold the recording device close to the phone ear piece.  Alternatively you can get dedicated phone call recording equipment.

Sometimes recording a call and then playing it back to the caller will be enough to stop them calling.  Especially if they are harassing you, telling you lies or making threats over the phone. Knowing they are being recorded breaking the law will be enough to stop them.

However you may want to do a little more than that.  If you really want to fight back then don’t tell them you are recording the calls.  You can then gather lots of recording to use as evidence of harassment from the company.  Don’t worry it is not illegal for an individual to record calls on their own home phone.  There is some debate about whether these recording could be used in court, it probably be up to the judge as to whether or not they can be heard as evidence.  A transcript of the call could be used as evidence, and would carry a lot of weight. 

Once you have evidence of harassment, you can contact your local Trading Standards Office and make a complaint against the company.  You can also contact the Office of Fair Trading (OFT).  The OFT do not take up individual cases, but their Debt Collection Enforcement Team collects information that can be used to take action against creditors if enough people complain about them.  If the OFT do take action the company can lose it’s consumer credit license.

So, if you are being harassed then start gathering the evidence and make a complaint.