I know I shouldn’t be talking about this stuff…NOT! I’m no longer an employee of that said company, so I can say what I want to say now. I’ll be talking about different payment options offered to debtors with credit cards four months past due and above. We’ve been taught to collect aggressively, again and again and again. But I’ll say it one more time, I don’t do that. I just can’t. That’s why I’m not cut out to be a collector – and I hated the job.

Okay, so first off, after confirming that we’re talking to the right party, we have to introduce ourselves, the company we’re working for and why we’re calling. Then we have to say this:

“This is an attempt to collect a debt and any information obtained will be used for this purpose only, this call is monitored and recorded for quality assurance.”

That is the mini-miranda. We have to say that before we disclose ANY information to the debtor, as per the FDCPA. So, after the formalities, we inform them that they owe a certain kind of amount. Usually the debtors cannot pay for the whole amount (credit card balance) so we ask them if they can pay the TOTAL AMOUNT DUE (Amount past due). If the debtor says no, then we will offer them a payment program which lasts for six months. In this case, we’ll start at three months past due.

Before I begin, let me tell you that we see a lot of information on the computer screen. But we will focus mainly on the balance, total amount due, minimum amount due, the due date – let me set an example:

Balance: $300

Total amount due: $75

Minimum amount due: $20

Due date: April 21, 2011

and this:

1    50

2    40

3    30

This is what we look for at screen when the credit card account is three months past due. These numbers are the total amount due (now considered minimum amounts) for the past three months the debtor has missed his payments. Now, for this six month-payment program, the debtor will have to pay / issue post dated checks for the next six months, on or before the due date each month. Let’s say the debtor agrees to go with the payment program, this is what is needed each month.

$30 on April 10

$40 on May 10

$50 on June 10

$20 for the months of July, August, September, every 10th also. (This $20 is the minimum amount due) Note that it isn’t necessary to date each check every 10th of the month. You can date it at any day of the month, as long as: 1. It’s 30 days after the date on the first check and 2. It does NOT go beyond the due date of the account, in this case, it’s the 21st, as was seen on the example above.

QUESTION: What happens to the account after the sixth month?

ANSWER: It goes out of collection, and goes back to being current/up to date again.

 

I get a lot of that question, but I usually say “…if within six months, you think you’ll be able to come up with the total amount due or something higher, just give us a call and we’ll  gladly help you out.” Why? Because that payment plan incurs late fees! WHY?! Because you are just paying minimum each month. BUT we are not allowed to say that UNLESS the debtor asks. WHY?!!! Because as long as the account stays in collection, the financer of the credit card earns MORE!

I just covered a payment plan for a three months past due account. I know I still have a lot to cover. If you have any questions, feel free to leave a comment. Credit card financers only think about draining more money from debtors. I would love to name drop here, but I won’t, for the meantime. So, I guess it all goes back to us credit card holders – to be responsible every time we have the urge to use plastic to buy something that isn’t really needed or out of our budget.

I’ll be talking about post dated checks next time or maybe office politics in a third party collections agency, CCCS (who also scams people, tricking them into thinking that they can really help pay off debts – they make matters worse!) or maybe Rihanna being the ‘Illuminati Princess’…

 

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