Debt collection is all about mind games. NotSoDeepSouth blogged about the four magical words that he used to use as a debt collector that acted like a crowbar on people’s wallets, getting formerly relcacitrant people to empty out their pockets.

The four words are:

– “office”
– “file”
– “client”
– “flat refusal to pay”

Example sentence: “Ms. Jameson, are you aware that you owe my client, Ultracorps, $217.23? I’m just calling to confirm one final time that this is a flat refusal to pay before I file this with my office and we take additional steps.”

The psychology is simple, NotSoDeepSouth writes. “If I call up and use the buzz words alleging legal action, and I sound educated enough to perform some sort of legal action, people tended to find money in the budget.”

As an individual debt collector he made 20-35% off all the money he collected. When the original debts were bought for $.0025 on the dollar, that’s quite a profit.

This is why you should never get freaked out and caught up in a debt collector’s voodoo. First make them prove that they own the debt and that it’s valid, and then haggle it down.

Confessions of a Former Bill Collector [Crasstalk] (Thanks to Laura!)

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.