There’s debt collectors, and there’s loan sharks.
Doug Danger, posting on the DCC forums, specializes in collecting debt outside the statute of limitations. That is to say, debt that has expired and if you contested it in court, he would not be able to collect.
Doug proudly proclaims he is, “following after my old man who was the chief debt collector for a Jewish Loan Shark in suburban Chicago back in the good ole days.”
In plying his trade, Doug, says, “I make threats of arrest, property seizure, wage garnishment, and sometimes (usually if it’s a woman) I will threaten bodily harm if there is no payment….”
Doug hates dealing with consumers who know their rights under the Fair Debt Collection Practices Act.
Some of these rights include prohibitions against debt collectors making threats, using abusive language, or contacting debtors in any way after receiving written notice declaring no further contact or a refusal to pay the debt.
Get informed. Know your rights under the FDCPA. Here’s the federal statute. Read it over lunch.
Doug Danger’s post republished reposted below but be sure to check out the original thread and seven pages of replies.
THE CREAM OF THE CROP RISES TO THE TOP – Debt Collection 101 [DCC via Caveat Emptor]
Doug Danger posted:
- “I collect debts for a legitimate collection agency. My work focuses exclusively on collecting bad debt — generally either old debt that is beyond the Statute of Limitations or Unlicensed Lender Payday Debt where the number of rollovers billed to debtor exceeds the principle and legally permissible interest.
I love my work. I am following after my old man who was the chief debt collector for a Jewish Loan Shark in suburban Chicago back in the good ole days. I feel like I am carrying the family torch. While I am not alloted as much flexibility in my methods compared to my dad since my debtors are not generally local, I will go to extreme measures to collect on debt.
I do not believe in the Fair Debt Collection Practices Act. I realize that it is a law, and my company generally complies with the FDCPA in collection of legitimate debt.
I have one motto and one gameplan that both guide my debt collecting.
My gameplan is to be cognizant at all times of the fact that I am collecting bad debt. Therefore, I am not going to be able to collect from any one. I have to size up my competition.
I believe that there are 3 types of debtors when it comes to collecting bad debt. The first step to deciding how to handle a phone call to the debtor is to determine which category they fall into.
Category 1: People who realize that the debt is uncollectible because it is barred by state or federal statute. I don’t violate the FDCPA until I have sized up a debtor as NOT being in this category. That’s because these are the types who will file a complaint on me AND it’s not worth the risk because they are not going to pay anyway — they know the law is on their side.
Category 2: People who are not aware of their rights but are hostile from the get-go with me. I try to use reverse psychology with them. And when I harass them it is always in a more subtle manner. I try to reason with them but subtly I try to humiliate them for not paying the debt. I have more luck with these people than with Category Oners, but this is still not the preferred group of people. They are also the type likely to stumble across this site. If that happens, I don’t get paid.
Category 3: These are the people who tremble and shake and care freaked out when I call. They are the ones to go crying and just lose it. I harass the living daylights out of these people. I make threats of arrest, property seizure, wage garnishment, and sometimes (usually if it’s a woman) I will threaten bodily harm if there is no payment. Sometimes these people will stumble across this site and not pay. But I have pretty good luck with these people.
The Motto: Don’t put off tomorrow what I can make today.
In collecting bad debts, you have to take anything you can get. If I can get $100 up front as part of a deferred payment plan, that is still probably more than we paid for the debt.
When you consider that the person may soon learn that this is bad debt and cancel the payment plan, at least I got the $100 up front. When someone wants a payment plan that starts anything more than 3 days out, I suggest a small amount paid today. Because even in that few days, they may learn of their rights.
PLUS, once I have their bank account information, technically I could still debit their account even after they change their mind. I can just leave it to them to dispute with their bank.
So, that’s really the key: GETTING SOME MONEY TODAY and getting the debtors’ bank account information TODAY.
A final note I’d like to share is why I am here. I am here to read about the companies we do business. I am also here to find debtors that I may be dealing with. I have on occasion stumbled across a debtor who I had dealt with posting on this site. The names and situations were similar enough. Since I had been so rude to them, and you people told them I violated the FDCPA, I called back the debtor the next day under a phony name and voice, and I claimed that I had heard the phone call with the debtor and the collector was then fired on the spot. I assure them that we comply with the law.”
— BEN POPKEN