Common debt collection techniques used by a business include sending bills or statements in the mail, phone calls, in-person visits and, in some cases, litigation or turning over the debt to a collection agency, according to the Credit Research Foundation. These debt collection agencies often try to contact debtors on the phone to set up payment plans, explains Nolo.
Many debt collectors are polite and helpful, but some others use illegal tactics such threats of arrest, says Nolo. However, not all of the tactics are illegal for creditors, as the businesses that are owed the debts. Debt collectors, despite the law, sometimes call a client during odd or inconvenient times. They sometimes directly contact a debtor even if the client communicates through an attorney. Some collectors call debtors at work, and a debtor who does not wish to receive these calls should say that his boss does not allow personal calls. Debt collectors are allowed to use third parties, with certain restrictions, to find a debtor's whereabouts.
The first communication that a debt collection agency makes must give the collector's name, the name of his agency, the fact that he is trying to collect a debt and that any information he gets from a debtor goes toward that purpose, explains Nolo. In future communications, the collector must always notify debtors of his name and his agency's name.