The document discusses and debunks 8 common myths about debt collection. Some of the myths addressed include that people can pay their original creditors instead of collection agencies, that avoiding collectors will make them go away, and that smaller debts do not go to collections. The facts provided explain that collection agencies have legal rights to collect debts, avoiding collectors only makes the situation worse, and debts of any size could end up in collections. The document aims to provide accurate information about how debt collection works and help people understand their options if they find themselves in collections.

1. 8 Debt
Collection
Myths
BUSTED
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2. MYTH
YOU CAN PAY THE ORIGINAL
CREDITOR INSTEAD OF THE
DEBT COLLECTOR.
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3. FACT
Other companies hire debt collection agencies to collect for
them, called third party agencies. Or, they sell their debt to a
collection agency, meaning the original creditor no longer
owns the debt.
Either way, the collection agency is contacting you for a reason
and you cannot bypass them.
The good news is, however, that most collection agencies offer
several payment options, like an online payment portal or a
payment plan.
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4. MYTH
DEBT COLLECTIONS WON'T
IMPACT YOUR CREDIT SCORE
IF YOU PAY IT.
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5. FACT
When a debt goes into collections, it has most likely already
negatively impacted your credit score. When you refuse to
work with a collector, it can cause further damage. It’s best to
pay your bills on time and avoid collections altogether, but if
you are contacted by a collector, just cooperate and pay or
explain your situation.
It’s a collector’s job to resolve debt, so they are most likely
willing to work with you and figure out some options for how
you can pay the debt.
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6. MYTH
IF YOU AVOID COLLECTORS,
THEY'LL GO AWAY.
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7. FACT
Avoiding collection calls will only make the situation worse and
damage your credit score.
Plus, collectors can help by giving you options to repay your
debt.
It’s best to cooperate with collectors and try to explain your
situation.
Brown & Joseph, Ltd.

8. MYTH
THE FAIR DEBT COLLECTION
PRACTICES ACT (FDCPA)
PROTECTS ALL DEBTORS.
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9. FACT
According to Investopedia, the FDCPA is “a federal law that
limits the behavior and actions of third-party debt collectors
who are attempting to collect debts on behalf of another
person or entity.”
However, the FDCPA only protects consumer debtors, not
commercial debtors. Although there are currently no federal
laws controlling commercial debt collection, most states have
statutes which govern commercial debt collection.
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10. MYTH
SMALLER DEBTS DON'T GO
INTO COLLECTIONS.
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11. FACT
While some agencies don’t bother with smaller amounts,
others specialize in collecting smaller amounts of debt
because it can add up over time to create good revenue.
There’s no way to tell if a debt will go into collections or not.
Basically, anything can go into collections and harm your
credit score. It’s best to just pay what you owe.
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12. MYTH
DEBT COLLECTORS ONLY
CARE ABOUT GETTING YOUR
MONEY.
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13. FACT
Debt collectors’ jobs are to resolve debt, not just collect it.
They will work with you on payment plans, recommend
programs to get out of debt.
So, if you’re contacted by a debt collector, see what your
options are and what they can do to help.
Brown & Joseph, Ltd.

14. MYTH
HIRING A COLLECTION
AGENCY IS EXPENSIVE.
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15. FACT
Most collection agencies operate on a contingency-fee basis,
meaning if they don’t collect, you don’t pay. Others will charge
a flat fee.
When you hire a collection agency you are hiring experts who
can increase their sales by collecting more money for their
customers.
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16. MYTH
Businesses that use collection
agencies lose customers.
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17. FACT
If you choose a good collection agency, you won’t lose
customers.
This would only be the case if the agency uses illegal tactics to
collect debt, like threats or harassment.
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18. THANKS!Brown & Joseph, Ltd. provides commercial debt collection
services.
For more information, visit brownandjoseph.com or contact:
Mikaela Parrick
Marketing Associate
mparrick@brownandjoseph.com
(847) 621-6065
Brown & Joseph, Ltd.