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Dear Mr. Chang,
I am writing to you in response to your Midweek article for August 7, 2013 titled “Dealing with Debt Collectors.” My goal isn’t to dispute what you have written, which was well done, rather to add some context regarding personal responsibility that was missing from your article.
For consumers who rightfully owe a debt it is important to reiterate the critical need for communication. Simply ceasing communication or ignoring the debt collector does not make a debt go away – in fact it can do more harm to a consumer than good. For example, things like interest legally may accrue and add to the unpaid principal amount. An unpaid debt may be reported to a credit bureau, which can negatively impact a consumer seeking a line of credit or home or auto loan. Ultimately, not working to resolve a rightfully owed debt could result in legal action such as judgment or garnishment. In the end, if consumers and debt collectors communicate they can find mutually beneficial solutions.
As someone who works in the debt collection industry, I understand the importance of consumer education so they know their rights should they ever be contacted about an owed debt. Therefore, we support www.askdoctordebt.org
It’s also easy to appreciate that people don’t want to be contacted about a debt, whether from a creditor or debt collector. Our employees follow an industry code of ethics and the Collectors Pledge, which reinforces our stringent belief that consumers should be treated fairly, respectfully and legally.
The recovery of rightfully owed consumer debt is exceedingly valuable to our local, state and national economies (as demonstrated by our industry’s recent economic impact report). These recoveries help businesses and government pay salaries, keep people employed, meet rent and utility obligations, purchase inventory and maintain operations. For Hawaiian state and local government, budget holes created when taxpayer owed dollars including taxes, fines and fees aren’t repaid it requires spending cuts or tax increases to close the gap for uncollected taxpayer dollars. Without these recoveries the cost of goods and services would increase, it would be much harder for consumers to purchase items on credit and, for all practical purposes, put an end to America’s credit-based economy that we enjoy today.
In closing, we are not the enemy. We are men and women just like your readers doing a very difficult but important job. Our aim is to work with, not against consumers to resolve rightfully owed obligations in a compliant, fair and respectful manner.
Thank you for the opportunity to provide my perspective. I have also emailed a very similar letter to Editor-in-Chief, Don Chapman, in hopes that it will be published as it will be prove to be beneficial to all consumers. I’d be happy to talk further about our industry and welcome you to visit our agency. My contact information is below.
Regards,
Samantha Pang