Jeff's Blog

Debt Collectors and the Economic Crisis of 2009, some things to ponder.......

What will debt collectors do in 2009 given the current economic crisis?

The truth is, nobody truly knows what will happen in the future.  All we do know is that during economic hard times, consumers will pay for their necessities first (food, clothing, shelter, utilities) and car payments, credit card payments, student loan payments, will be last on the list.

Original creditors may give consumers more of a chance in making payments prior to charging off the debt or selling it to a debt collector.  This may mean more negotiations between the original creditors and consumers by extending payment dates and lowering payments.   However, this may also mean more lawsuits by the original creditors or third party debt collection companies.

The debt collectors may try to squeeze money out of consumers by doing whatever it takes.  Remember, most of the time debt collectors are paid on commission.  With the economy so bad, I’m assuming that harassment tactics will get even worse. 

Now, if you are avoiding payments on old debt, thus avoiding debt collector phone calls, they might be more inclined to hold “block parties” or “office parties”.  Block parties would be calling neighbors, friends, relatives, maybe even an old boyfriend with whom you haven’t seen for 10 years.  Debt collectors do this to embarrass you into paying the debt, or even scaring a relative into paying the debt for you. 

Office parties would be just the same embarrassing tactics only done with co-workers and possibly human resource departments or anyone they can speak with at your place of employment.  This would embarrass some consumers into paying their debt in fear of losing their jobs.

Obviously, the tactics of debt collectors go on and on.  Just make sure if you are experiencing any volume of communications with a debt collector to contact Jeff for a free consultation about your rights.  Remember, we are here to help consumers in Pittsburgh and surrounding areas. 

Don’t be embarrassed about contacting us.  Everyone is being affected in one way or another with the economic crisis at hand.  Let us help you and prevent debt collectors from getting away with taking advantage of today’s current situation.