Best Financial Markets Analysis Article You fought off your debts successfully last year. Today you are a happy man. You take pride in enlightening your friends about your debt story because you were never bogged down by it. It feels great because people now people come to you with their financial problems.

You think to yourself “Why shouldn’t they? After all, it’s me who handled my debt and managed to defeat it without falling prey to scam debt consolidation agencies”. So far, so good. This morning you have reasons to be pessimistic about your achievement. Yes, your debt collectors called you up this morning. Not to congratulate you, it was to remind you that you still have payments pending.

This is not a very unfamiliar scenario today. A lot of people who did clear their debts with debt relief programs have frequently faced similar situations. But why does this happen? Well, have you ever heard about scavenger debt collectors? No? Then this is perfect time to know more about them.

Governments, nations and people; debt has so badly infested every part of the globe that now investors see it as a popular form of investment. Many of them have set up dedicated companies to collect old debts (by buying it from other companies) that have been written off long ago. Such companies are popularly called scavenger debt collectors.

Identifying the scavengers

Scavenger debt collectors are only concerned about your old debts. Since they are here to illegally make profit from you, they will try their best to convince you to clear your debts for a much lower amount. And for this they will aggressively try to strike a deal with you.

They employ various illegal tactics and harass you to clear your payments. They will never admit that they are collection agencies and usually identify themselves as litigation firms. They can even threat to sue you. Some go to the extent of claiming that they do not fall under the purview of FDCPA! Scavenger debt collection is a pretty lucrative industry today. They buy old debts from companies and then come after you for payments along with the interest. No wonder why they are called scavengers!

How can you handle the scavenger debt collectors?

The first and foremost rule is to never get scared if you receive a call from a person falsely identifying himself as an attorney from a law firm. Instead, question him about the slightest of doubts that you might have regarding your old debts. By most chances, you will be able to find out that they are not lawyers at all.
These debt collectors can call you at odd hours much to your inconvenience. It is a good idea to write a cease and desist letter to the company asking them that all future communication with you be done in writing. Be sure to mention in the letter that the statute of limitations and the credit reporting period has expired on the particular debt.
If your financial situation permits then it is advisable to appoint an attorney to handle your case. The lawyer will communicate with them on your behalf and try to convince them to stop all correspondence with you.
The last option is to actually argue with them. But you have to be sure with your negotiation skills in this case. They will try their best to engage you and then force you to pay up. This will no doubt land you up in a negative position.

If these debt collectors continue to harass you then you must keep certain points in mind. Never ever admit that you owe the debt. They will try their best to force you but you should never agree to pay the debt. If you do so, then there is a risk of the statute of limitations starting again for your debts. If this happens then you are just giving the debt collectors the legal right to sue you and you certainly do not want this. Keep these simple points in mind and you will do good to keep the scamming scavengers where they deserve to be!

This is a guest post by Jack Reed. He is a financial writer with Oak View Law Group and offers advice on various debt management programs. He can be contacted at jackrd3@gmail(dot)com"

© 2011 Copyright Jack Reed - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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