Why debt collectors are scum

w1z4rd

w1z4rd

Karmic Sangoma
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So again with my employee with the debt problems. I tell him he needs to sort his stuff out and he starts paying back. Have a look at how a debt collector works:

http://www.scribd.com/doc/65639199/File

Notice, that the opening amount that he owes is: R394.08

You can see the time when I told him to pay it off he now owes R1545.98!!!

Around the 03/11/2010. He starts paying back, R250 a month. By the 31/07/2011 the debt is full paid off. Actually he is now R105 in the credit. However, he still keeps getting charged for random stuff. Theres even an entry there "Perusing file for payment" and the classic one is "Telephone call RECEIVED" (he eventually had to phone them as no one there would contact him... and he got charged for it!)

They add more random charges and now he owes another R279.41.

Seriously... how is this stuff legal? How can a person sleep at night committing such glutenous evil? Is this reasonable or for real? What options does my employee have?
 
11% Comm on collection,i've seen worse rates. Looks like they struggled to get any response from the defaulter for quite a long time,thus the multiple letters and summons. The rates are pretty average from what I glanced over

Tip with debt collection agencies: organize a payment plan,even R50 a month and pay it before the next runs,that'll prevent SMS/Phonecalls from being made to remind you (fax/email payment details to the collector/agency) and accrual will be less on your debt.
 
PsyWulf said:
11% Comm on collection,i've seen worse rates. Looks like they struggled to get any response from the defaulter for quite a long time,thus the multiple letters and summons. The rates are pretty average from what I glanced over

Tip with debt collection agencies: organize a payment plan,even R50 a month and pay it before the next runs,that'll prevent SMS/Phonecalls from being made to remind you (fax/email payment details to the collector/agency) and accrual will be less on your debt.
Click to expand...

Erm... Im sorry, nothing about those charges are justified. Nothing. End of story. Thats blatant extortion. The guy has already paid back R1550 on an account he originally owed R350 on, and the people were unable to communicate with him, as he was jobless and almost homeless.

Worst is, the debt was prescribed, but he wanted to pay it back. Just goes to show you.... as the poor chap is trying to get on his feet, the scum try knock him down.

Council for debt collectors sounds like a group interested in protecting debt collectors rights. Ive told him to use my lawyer. Screw this. This is evil ****.
 
Last edited:
ghoti said:
Around the 03/11/2010. He starts paying back, R250 a month. By the 31/07/2011 the debt is full paid off. Actually he is now R105 in the credit. However, he still keeps getting charged for random stuff. Theres even an entry there "Perusing file for payment" and the classic one is "Telephone call RECEIVED" (he eventually had to phone them as no one there would contact him... and he got charged for it!)

They add more random charges and now he owes another R279.41.
Click to expand...

*I'm speaking under correction as it's been a while since I contracted for such a company*
Afaik once the debt is fully paid up the defaulter must request a debt-clearance certificate from the collection agency,at which time the amount is fully settled ( reimburse/pay in as required )
 
PsyWulf said:
*I'm speaking under correction as it's been a while since I contracted for such a company*
Afaik once the debt is fully paid up the defaulter must request a debt-clearance certificate from the collection agency,at which time the amount is fully settled ( reimburse/pay in as required )
Click to expand...

They can keep adding random charges on, so what matters if he settles? They`ll charge him for paying. Or charge him for answering the call to confirm payment. Or charge him for a debt-clearance certificate, or charge him for walking to a fax machine or something like that.

Anyways, Ive told him to use my lawyer. This is extortion.
 
ghoti said:
Erm... Im sorry, nothing about those charges are justified. Nothing. End of story. Thats blatant extortion. The guy has already paid back R1550 on an account he originally owed R350 on, and the people were unable to communicate with him, as he was jobless and almost homeless.
Click to expand...

Generally if a company hands you over for collection they've given up on utilizing their own resources for collection - which they don't prefer. If ever you land in a situation like this where your debts cannot be settled it's safer to speak to the company directly.
I've been there,i've gotten the calls. Phone the company and explain your situation BEFORE it gets handed over,often you'd find they'd be willing to give you a pause or a workable payment plan dependant on how bad the situation is.
 
ghoti said:
They can keep adding random charges on, so what matters if he settles? They`ll charge him for paying. Or charge him for answering the call to confirm payment. Or charge him for a debt-clearance certificate, or charge him for walking to a fax machine or something like that.

Anyways, Ive told him to use my lawyer. This is extortion.
Click to expand...

Once that certificate is sent the debt is nulled and no more charges can be levied ( except the certificate cost itself )
 
PsyWulf said:
Generally if a company hands you over for collection they've given up on utilizing their own resources for collection - which they don't prefer. If ever you land in a situation like this where your debts cannot be settled it's safer to speak to the company directly.
I've been there,i've gotten the calls. Phone the company and explain your situation BEFORE it gets handed over,often you'd find they'd be willing to give you a pause or a workable payment plan dependant on how bad the situation is.
Click to expand...

That boat long since sailed for my employee. Now its a matter of trying to pull him out before the maggots destroy his life again.
 
TBH: I felt bad for the collectors and the defaulters. I share your opinion that it's a bit of a shark-racket :) I feel the agencies are to blame really.

I don't agree with the practice,but the tips and info I provided however are to try to smoothe over and sort out your debts before ( or after ) an agency latches on to you :P
 
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