Collection agencies for the most part use letters and phone calls to accomplish collection. Collection letters are generally computer generated, and vary in severity. The first letter typically begins with a simple “reminder” tone and as the letters progress they may build up to a final demand.

In the last article of this series I described two different sorts of collection agents: in house collectors and third party collectors. In house collectors work directly for the creditor, while third party collectors work for a collection agency hired by the creditor to collect on delinquent accounts. I mentioned that third party debt collectors are bound by the rules and guidelines of the FDCPA, while in house collectors are not. The FDCPA stands for Fair Debt Collection Practices Acts and it is full of strict guidelines that third party collection agents must follow.

There seems to be a lot of confusion about what debt collectors have the authority to do. Admittedly, some collection agents might intentionally lie or insinuate that they can do more than they legally can to intimidate debtors. Generally the main factor that will motivate debtors to pay is the persistence of correspondence from the collection agency. If they do not pay, they know that the letters and phone calls will not stop.