January 04, 2013

Disappearing debts? Popular myths about bill collectors

In bad economic times, myths about collection agencies proliferate. Here are two especially stubborn urban legends:

It’s boom time for collection agencies: Defaults and delinquencies have increased during the economic downturn. But it also has been more difficult for agencies to collect on many bad debts due to high levels of unemployment and bankruptcy.

Avoiding a collector will make the debt go away. Consumers who ask debt collectors to stop contacting them, or who choose to not respond to calls or letters, often believe their debt will eventually go away. That’s not true. Outstanding debts will stick around whether you want to talk to a collection agency or not.

There are plenty of other myths out there. If you’d like to read about a few more, here’s a great article. Enjoy!

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