What do debt collectors do?

While it sounds like a job that belongs in a hard-boiled detective novel, debt collectors are real people with real jobs.

How you feel about debt collectors probably depends on whether someone owes you money or you owe them. Like most things, it's easier to hand over the job to a specialist, and that's what a debt collector is, whether they work for the company that's owed the money (a first-party agency) or if the company hires them to collect, in exchange for a fee or a portion of the debt (third-party agency).

First-party debt collectors are more likely to be polite. The company they work for may still want the debtor as a customer. Many third-party collectors, on the other hand, only make money if they collect, so may they be more aggressive. Most countries have laws setting out who can be a debt collector and what they're allowed to do. They may not be allowed to telephone debtors late at night, for example, nor can they be threatening or abusive, or discuss the debt with people other than the debtor's lawyer or spouse.

Collection usually starts with a series of letters. Next, they'll try telephoning. If the debtor isn't trying to avoid paying, but has financial problems, often a payment schedule can be worked out. If the debt collector is having trouble finding the debtor, they may contact neighbors or relatives, looking for information on their whereabouts. They'll certainly check the internet for information on the debtor as well.

Once a recalcitrant debtor is located, debt collectors may file a lawsuit against them if they are unwilling to make repayment arrangements. If successful, this may allow them to garnish the debtor's wages or seize the debtor's property for resale. Not nearly as glamorous or exciting as it is on television, but it works often enough to keep many debt collecting agencies in business.