What Are Private Debt Collectors?

Private debt collectors are third-party companies that are hired by creditors to collect debts.

This can be done through a variety of methods, such as contacting the debtor by mail, telephone, or in person. They may also try to seize the debtor’s assets or garnish their wages.

Read on to learn more about private debt collectors, their tactics, and your rights under the law.

What Are Private Debt Collectors?

What Is A Private Debt Collector And What Can They Do?

As mentioned, a private debt collector is a third-party company hired by creditors to collect debts.

This can often be done after the creditor has unsuccessfully attempted to collect the debt themselves.

There are many different ways that these collectors may try to collect a debt, such as:

  • Contacting the debtor: They will often try to contact the debtor by telephone, mail, or even in person. They may also contact the debtor’s family, friends, or employer in an attempt to get information about the debtor’s whereabouts.
  • Garnishing wages: These collectors may also try to garnish the debtor’s wages in order to collect a debt. Garnishing is when a portion of the debtor’s wages is withheld and given to the creditor.
  • Seizing assets: In some cases, these collectors may try to seize the debtor’s assets to collect a debt. This can be done through a process called repossession.

Read Difference Between Debt Settlement And Debt Consolidation

Why Do Creditors Hire Private Debt Collectors?

There are a few reasons why creditors may hire private debt collectors. 

One reason is that they may be more successful in collecting debt than the creditor themselves.

Private debt collectors have experience and training in debt collection, and they may be more aggressive in contacting the debtor and trying to get them to pay their debt.

Another reason is that it can be cheaper for the creditor to hire a private debt collector.

This is because the creditor does not have to pay the private debt collector’s fees unless they are successful in collecting the debt.

Read: Cheapest Way To Get Out Of Debt

What Are Your Rights When Dealing With Private Debt Collectors?

It’s important to know that you have certain rights when dealing with private debt collectors. These rights are outlined in the Fair Debt Collection Practices Act (FDCPA).

Some of the most important rights that you have to include:

  • The right to know who the debt collector is: The debt collector must identify themselves and let you know that they are attempting to collect a debt.
  • The right to know how much you owe: The debt collector must tell you how much money you owe.
  • The right to dispute the debt: If you believe that you do not owe the money, or if you believe that the amount owed is incorrect, you have the right to dispute the debt.
  • The right to request proof of the debt: You have the right to request proof of the debt from the creditor. This can be done by sending a written request within 30 days of receiving notice from the debt collector.

Final Thoughts

While private debt collectors can be helpful in some situations, it’s important to know your rights when dealing with them.

If a private debt collector is harassing you or violating your rights, you may want to consider contacting an attorney.

NPC Overall Rating

Leave a Comment