888 899 6650 is not explained in the post as a specific product or service; the article is about the top 3 debt collection complaints and how to respond to them. The main issues covered are inaccurate billing, harassing phone calls, and unnecessary threats. The post says businesses should keep records accurate, follow the FDCPA, and consider working with a reputable third-party collection agency like TSI.
TL;DR
- The post says the top debt collection complaints are inaccurate billing, harassing phone calls, and unnecessary threats.
- To reduce complaints, businesses should audit accounts, verify unusual bills, and follow the FDCPA when collecting debts.
- The post recommends a courteous, reputable third-party collection agency such as TSI as a possible way to avoid fines, lawsuits, and reputational damage.
Frequently Asked Questions
What are the top debt collection complaints?
The post identifies three main complaints: inaccurate billing, harassing phone calls, and unnecessary threats. It says these issues can lead to complaints filed with agencies like the FTC and BBB, and can also create legal and financial consequences for businesses.
How can businesses avoid inaccurate billing complaints?
The post recommends conducting regular accounting audits to catch billing errors before accounts go to collections. It also suggests contacting the customer when a bill seems unusual, verifying that the bill is correct, and then requesting payment rather than demanding it immediately.
What counts as harassing phone calls in debt collection?
According to the post, repeated calls, calls made outside the specific hours allowed by the FDCPA, or contacting a person’s workplace repeatedly can be viewed as harassment. The post warns that both fines and lawsuits can follow if consumers feel harassed.
Why are unnecessary threats a problem in debt collection?
Unnecessary or misleading threats can violate the Fair Debt Collection Practices Act (FDCPA) and damage consumer trust. Under 15 USC § 1692e(5), debt collectors cannot threaten legal action or other measures that cannot legally be taken or that they do not intend to take. However, accurately communicating a lawful action that the collector genuinely intends to pursue is not automatically prohibited. Similarly, interest and late fees are not inherently illegal, but under 15 USC § 1692f(1), collectors cannot collect amounts unless they are expressly authorized by the agreement creating the debt or permitted by law. Clear, accurate, and lawful communication helps reduce consumer complaints and compliance risks.
What is the best way to handle debt collection complaints?
The post suggests taking a courteous approach, working with customers on reasonable payment plans or brief deferrals, and following the FDCPA carefully. It also says a reputable third-party agency, such as TSI, may help businesses collect more responsibly and avoid reputational damage.
Let’s face it: Most people don’t enjoy hearing from debt collectors. That’s why they screen their calls and shred their incoming mail.
Unfortunately, debt collection complaints often find their way to top agencies in the U.S., from the Federal Trade Commission (FTC) to the Better Business Bureau (BBB). Understanding the top complaints and how to handle them can keep you from having to pay costly fines and suffer other negative consequences.
Inaccurate Billing
It’s true: sometimes numbers do lie.
You might have read recent news reports about inaccurate medical bills. Patients receive invoices when they’ve already paid the bill, for instance, or get charged for tests that insurance should have covered.
However, inaccurate billing stretches well beyond the medical industry. Comcast, a cable and internet provider, recently came under fire for overcharging a customer based on inaccurate data collection.
Customers understandably get angry when they’re asked to pay a bill they know they don’t owe. It’s up to the business to make sure they keep accurate records and keep their AR departments in order.
What to Do About Inaccurate Billing
Conducting regular accounting audits can help you catch billing errors before customer accounts ever move to the collections process. Additionally, if a customer’s bill seems unusual, consider contacting him or her to ask about it. Instead of demanding payment, verify that the bill is correct, then request payment.
Harassing Phones Calls
Do you enjoy seeing the same number crop up on your phone 15 times a day?
When someone owes you money, you can call to attempt to collect the debt as long as you follow the laws set forth by the FTC’s Fair Debt Collection Practices Act (FDCPA). Calls made outside of specific hours set forth, or when a person’s place of business is contacted repeatedly, debt collection efforts can be viewed as harassment.
Not only can the FTC impose fines against companies that violate consumers’ rights, but customers who feel harassed can also sue debt collectors. If you’re found guilty of harassing your customers, you could face serious financial repercussions.
What To Do About Harassing Phone Calls
If you’re collecting debts on your own, follow the FDCPA to the letter.
To avoid hefty fines, lawsuits, and other consequences, you might want to work with an experienced debt collection agency that knows how to follow the rules and collect money courteously. Many businesses find that working with third-party collection agencies proves more fiscally responsible than attempting to keep debt collection in-house.
Unnecessary Threats
This isn’t the reaction you want when you call a customer…even a delinquent one.
In their zeal to collect unpaid debts, companies sometimes make threats about litigation, usurious interest charges and late fees, and other legal action. The FTC and BBB receive complaints about these threats on a regular basis, and they’re not just bad for business — they’re illegal.
You’re not allowed to call a customer and pretend to be a lawyer or anyone other than who you are. Furthermore, threatening legal action is the perfect way to anger your customer and ensure you never receive a penny of what you’re owed.
What To Do About Unnecessary Threats
Take the honey-not-vinegar approach to debt collection if you want to get your delinquent customers to pay. Working with your customers to set up reasonable payment plans or to defer payment for a brief time can inspire a better response.
Again, working with a third-party agency might offer the best solution. If you choose a reputable agency, such as TSI, you won’t have to worry about ruining your company’s reputation or angering your customers.
Unpaid debts can put a serious crimp in your cash flow. Feel free to learn more about how to optimize your revenue if you’re interested in boosting cash flow and collecting more unpaid debts.
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