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When it comes to the subject of debt collecting, there are a lot of misconceptions and misinformation. Here are some tools of the trade that you can use if a debt collector ever calls you. When the collection agent calls, the first thing you want to do is determine if this is a third party collector or an in house collector. Third party collectors are hired by creditors on contingency, while in house collectors are the creditors.

Ask the debt collector “Are you contacting me as a creditor or a third party collection agent?” Not only will this give the bill collector the impression that you are competent, but it is important to know, because third party debt collectors must abide by strict regulations enacted under The Fair Debt Collection Practices Act. Keep in mind that most debt collectors are third party ones.

The debt collector will deliver what is known as a “mini Miranda.” What this means is that your phone call is being recorded and anything you say can be utilized by the company to collect debt. After this they will ask you about the debt that they are calling about. Instead of replying in any way that would acknowledge that you owe money, politely request some initial information from the collection agent before the conversation continues. By law, a third party collection agent is required to give you the name of the agency, their address, fax and phone number, and the name of the original creditor. Ask for all of this, the debt collector’s name, and their specific phone number.

After you have obtained this specific information, tell the bill collector you are tied up at the moment and will contact them back in an hour. Bear in mind that collection agents will always try to achieve a sense of urgency and may insinuate that you must or should talk to them now, but you do not have to. Now, after hanging up, you are in control because the ball is in your court.

Take this time to try to recall if you know what debt the debt collector may have been questioning you about. If you remember legitimately acquiring the debt, and the amount of the debt is correct, call back the debt collector and ask them if there is some type of repayment plan you could work out with them. It’s important to pay off this debt before the debt collector marks your credit score negatively, or even recommends that the creditor file suit against you.

Mallory Megan works for Rapid Recovery Solution and writes articles on commercial collection agencies. This article, The First Thing You Should Do If A Debt Collector Calls is released under a creative commons attribution licence.

Student loan debt is perhaps the most grueling, tiresome kind of debt that you can owe. For you to go to school, Uncle Sam has doled out money, and he fully expects to get that money back. Unlike most other loans, federal student loans are extremely difficult to discharge in bankruptcy. A man that drove to Vegas and gambled himself into foreclosure has a much more realistic chance of being capable of walking away from the situation than a student who borrowed money to go to school. Also, federal student loans have no statute of limitations and can be collected even from debtors’ Social Security Payments after they retire.

So what do you do if you are a student fresh out of school struggling to make ends meet? Get educated, again. A Collections manual, 2009 PCA Practices, was temporarily posted in a public section of the Department of Education’s website. A guide for the private collection agencies that work with the Department of Education, this manual can prove to be an invaluable resource for former students who are trying to learn more about paying back their student loan.

This article is based on what I’ve learned from the manual, and it focuses on the circumstances under which collection activity might be suspended on a student loan account. It additionally briefly describes how you would go about ceasing collection activity on your student loan altogether if you really wanted to, although that is not recommended. According to the manual, collection companies have to immediately suspend collection activity on an account if the borrower disputes the amount that is being owed, for example, saying that the debt was paid off, was never owed, or should have been canceled.

Collection activity has to be immediately suspended if the borrower raises a legal defense against repayment. These might include an ability to benefit, a closed school, or circumstances under which the Department of Education may not be permitted to pursue collection. If the borrower receives a 65 Day Notice of Federal Offset, or 30 day Administrative Wage Garnishment notice, and requests a written review or hearing in response, the collection agency needs to suspend collection activity. Finally, if the borrower files a written or verbal complaint against the collection agency, collection activity must be suspended.

Unlike suspension of collection activity, which is temporary, ceasing collection activity is permanent. If you want your student loan debt collector to stop contacting you, you must request in writing that the collection agency stop all communications with you. In these cases the collection agency is allowed to contact you one final time to let you know how they plan to proceed. Keep in mind that requesting that collection activity on your student loan be stopped is not a very good idea, as after the section on ceasing collection activity comes a section that informs the collection agency that the Department of Education expects the collection agency to evaluate the accounts with these requests for litigation. So even though you may experience a period of peace, that one final phone call you receive very well might be to inform you that you are being sued for all of the money you owe.

Mallory Megan works for Rapid Recovery Solution and writes articles on medical collection agencies. Check here for free reprint licence: Suspending And Stopping Student Loan Collection Activities- Straight From The Department Of Ed’s Manual.

On February 22nd, 2010, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act took effect. The CARD Act had one major purpose: to attempt to harness in credit card practices and set limits to the fees that credit card companies charge consumers. It was designed with credit card holders in mind, limiting the amount of credit made available to them in this recession “for their own good.”

As a result of the groundbreaking CARD Act, many banks and creditors have modified their business models by reducing potential risk to cardholders. They have dropped or restricted some borrowers with a poor financial history, tightened up credit lines, and are marketing less. Analysts predict credit limit reductions to have two main impacts for the collection industry.

One impact of the CARD Act has been the restriction of the average size of accounts that are placed for collection. This, coupled with consumer behavior these past few years, where people in general spent savings and maxed out personal loans and home equity, raises concern and eyebrows, because for many debtors, credit cards are the only short term credit that is available to them at this moment.

Another major impact of the CARD Act is a result of the provision that consumers are not able to pay off one credit card debt using another card. While this may help consumers to be more fiscally responsible, this obviously has massive ramifications for the collection industry. Researchers and leaders in the field hypothesize that the best way to deal with the enormous changes that have ensued is to remain flexible and to be creative. In addition to the same old telephone calls and collections letters, the internet can be looked into as an option for payment.

Researchers also remind us of a few ideas that we, as collection professionals should remember about the CARD Act. Excess payments should now go to pay off the accounts with highest interest balances first. The CARD Act also gives consumers the capacity to set their own credit limits that might be less than those set by the creditors, and marketing credit to college students and giving credit card access to people under twenty one will now be severely restricted.

Mallory Megan works for Rapid Recovery Solution and writes articles on national collection agencies. Unique version for reprint here: What Every Collection Agency Should Know About The CARD Act.

In article one in my series on mutual funds, I very briefly went over the essentials. I spoke about securities, which in layman’s terms is something that represents money. I wrote about two kinds of securities, stocks and bonds. I laid down the basics about stock markets and bonds markets, and noted that if you wanted to invest in or sell stocks and bonds you are going to need the help of a dealer or broker.

In article two, I got to the basics of mutual funds, which are set up like corporations or trusts. I let you know that mutual funds pool money from a number of different investors and invest it in different types of securities. I also mentioned that mutual funds have a fund manager that buys and sells the fund’s investments.

Mutual funds can invest in all types of securities, the most common being stocks, bonds, other mutual fund shares, and things called derivatives (these include forwards, futures, options, and swaps.) A derivative is a security whose value is based on the underlying value of the stock it is based on. Take an option for example.

One type of option might be the right to buy additional stock from a company at a set price. If the value of the stock is high, and you have this option to buy stock for a very low price, you can see that this option is lucrative, and that it might not be so lucrative if the same stock plummets in value, a value even lower than you have the right to buy it for.

Certain types of funds are known as specialty or sector funds. These funds will go out and invest only in certain things. One fund may invest mostly in the shares of a certain industry, like technology or financial services. Some mutual funds may invest in mostly American securities, mostly foreign securities, or both. Most mutual funds are continuously monitored by someone called a portfolio manager and their assistants. These people will invest the funds’ assets according to its investment objective, trade securities in order to make the most money, and check on the ongoing performance of the current investments.

Mallory Megan works for Rapid Recovery Solution and writes articles on third party collection agencies. Check here for free reprint licence: Understanding Mutual Funds Part Three.

The most up to date analysis of the American economy indicates that incomes are diminishing for those just starting out. The Collections Industry believes that this paradigm shift will be a permanent one.

The most uninsured and of any group in the United States. 30% of young adults are not insured today. Despite the fact that the majority of uninsured young adults are employed, a lot of uninsured young adults work in low wage jobs and for employers who offer limited or no health care coverage.

With this much young adults currently struggling to pay day to day expenses, debt collectors should step back and take a look at this situation. Uninsured young people are two times as likely as those with private insurance to have no education beyond high school. That limits their earnings potential in the future.

Because of the financial problems in 2008, stricter credit standards will most likely make it harder for a number of young adults to pay for post graduate education or get loans for “good debts,” such as a home.

This as well as the new problem of cell phones, makes it harder than ever for bill collectors to get into contact with consumers. John Monderine, owner of Rapid Recovery Solutions alleges that over 40 percent of his consumers don’t have landlines at this moment.

People who do research in the field think that more methodical profiling systems will be made to help collection agencies in collecting those accounts where there is an active cell phone and information from bureaus to see if the debtor has a new address or phone number.

A number of collection firms are preparing for younger adults, trying to utilize the ways that they like to do business and communicate. One collection agency recently added an online system that allows consumers to make payments online, rather than deal with a collector in person.

Mallory McGuinness is employed by a debt collection company. Also she writes stories on business, finance, consumer spending and collection agencies. You are welcome to reprint this article – but get your own unique content version here.