Debt collectors – Do they have unlimited powers?
Debt collectors do not have unlimited powers in respect to the threats they may make and the lengths they may go to to recover moneys owed to creditors.
It is a different matter however for secured debt as this affords debt collectors significantly more powers such that they can apply to repossess your assets whether it be your vehicle, home, it’s contents or equipment in order to offset the value of its disposal against your debt.
Because debt collectors are paid a commission on every cent recovered, small amounts will tend to be ignored so they may focus on the large accounts. Having said this, it is important to realise that consumers who ignore paying their small debts blemish their credit records just as much as those who don’t pay their large debts.
Clearly debt collectors have more incentive to chase larger accounts which means they will be relentless in doing so, harassing consumers with larger debt more often and this also means that these consumers stand a greater chance of being sued in order to have their large debts repaid. Summons are often served on consumers with large debts to appear in court.
Should the debt collector win the court case against a consumer, the court may slap a garnishee or emolument order against a consumer or debt collectors may apply to have permission to repossessed or seize a consumer’s assets. These seized assets will be sold on auction to the highest bidder and the proceeds of the sale offset against the consumers debt after costs.
Debt collectors may also place a judgment lien against a specific asset preventing a consumer from disposing of the asset or even using the asset as further collateral against additional loans.
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If you are concerned about the affordability of your debt repayments, simply call us, SMS Help to 40935 or fill out the form alongside and a highly trained, Debt-911 counsellor will make contact with you to assess your personal financial situation and give you free advice.