subject: Debt Collection Agencies Get Schooled In Sensitivity [print this page] Get ready: you may receive a call from the debt collector, and it may make you feel all warm and fuzzy inside! Bearing the massive amount of recent lawsuits that have been filed against abusive and dishonest debt collection agencies recently, ACA International, the largest American trade group of professional creditor and collectors, tells us that more and more collection agencies are working towards increasing empathetic feelings in their employees.
In an industry that has been defined by threats and repetitive phone calls, empathy might just be a plan of action that could really turn a profit for the right debt collection agency. A number of people who owe debt aren't just being called by a single collector; they are being called by a few, and if they do get a hold of some money that they decide to put towards paying off debt, chances are they will give it to the person they can work with, not that mean aggressive collector. I mean, think about it: put yourself in their shoes. Wouldn't you rather fork over your money to the nicest person you owe it to first?
While agencies work on perfecting training courses that will include seminars on how to be gentler with debtors, ACA International tells us that there will be a change of focus in the way collectors talk to consumers that will be defined by a shift from threats and aggression to coaching, mentoring and offering advice. In these training sessions, debt collector trainees are advised to think back about their own personal experiences with their own collectors, or someone that they know who has had to put up with them.
One shocking trend has been to train collection agents to suggest that debtors speak with their parents or grandparents about taking out a loan against their life insurance policies or a reverse mortgage against their house to help them pay off their debt. These collection agencies theorize that our grandparents remember the Great Depression, and won't want to see this generation experience that kind of torment, and therefore may be more prone to take out a loan to help out their kin.
Debt collectors who use this tactic believe that it is actually a positive thing to advise someone to put their parents or grandparents in such a situation. They claim it doesn't hurt anyone. After all, if a person borrows against life insurance it may be better than borrowing against a 401(k) or a retirement plan, because with those accounts, the person will be depending on that money to live on. My opinion? Leave grandma out of this! It is not HER fault that you racked up all that credit card debt! Do not force grandma to make such a decision! And about the debt collectors? Hey, I'm all for everyone being nicer to each other. It is just this reverse mortgage gimmick that makes me wary. Kind of reminds me of a loan shark who acts all friendly to you at first, wanting to help you out, then two weeks later, comes to break your fingers cause you haven't paid up.
