Treat debt collectors well, but keep fraudulent agents at bay

When in debt and the creditor decides to send the collectors, do not compromise, but negotiate new repayment terms. Fotosearch 

By Isaiah Opiyo

In Summary

• Negotiate with decorum, knowing these agencies are employees, not the creditor.

On a normal day, Steven* is slowly settling down after a series of meetings with senior management when he receives a telephone call from a local debt collector.

And the conversation goes. “Good morning, may I speak with Steven?” the caller asks.

“It’s Steven speaking, how can I help you?”

“I am Isaac from a local debt collection agency calling you in regard to an overdue debt of Sh2.8 million of a bank loan,” explains the caller.

Then, Steven recalls the debt but quickly toys with a ploy to keep the debt collectors at bay at least to get a reprieve.

Compromise officials

“I am sorry, that’s a wrong number,” replies Steven as he hurriedly hangs up.

Steven then recalls past encounters with debt collection agencies where he did not pay a coin, using a token to compromise the officials.

From his calculations, a sum of Sh48,000 in instalments of Sh8,000 for six months to the debt collectors was the trick than struggling to settle the huge debt.

At the expiry of the six months, the bank recalls the assignment from the debt collector and awards it to another firm. The new team gets him after two weeks of trying. They visit him at work.

Steven is taken aback on learning this is a new team and the people he bribed with Sh48,000 are no longer in charge.

He thinks about taking legal action against the previous collector but realises he had nothing to show for the payments. He chooses to negotiate and learns that he can comfortably commit to pay Sh10,000 monthly towards clearing the debt. He regrets past short-cuts, though late.

Copy cats

Such ordeals or mistakes where debtors have suffered at the hands of fraudulent debt collection agencies are many. People have also lost huge sums of money that could significantly reduce the size of their debt as they endeavour to compromise collection agencies.

But, people go through such pains for lack of clear understanding of debt collection arrangements. Usually, whenever a lending institution or a creditor comes across an overdue debt, they outsource collection services.