What Happened When I Didn’t Pay A Debt Collector

In this episode, one woman shows us the cautionary tale of not staying on top of your debt payoff scheduling — because no one will ever care about your money situation more than you.

Through weekly video essays, "Making It Work" showcases how *real* people have upgraded their personal or financial lives in some meaningful way. Making your life work for you doesn't mean getting rich just for the sake of it. It means making the most of what you have to build a life you love, both in your present and in your future. And while managing money is a crucial life skill for everyone, there's no one "right way" to go about it — you have to figure out what works best for *you,* full stop.

Video narration by Willow Jensen

Video by Grace Lee

Based on an essay by JoAnn DeLeau

The Financial Diet site:

[wreathlings]

Shouldn’t the personal takeaway point be “don’t sign shit you don’t understand” ?

And shouldn’t the social takeaway point be “It’ not OK for debt collectors to use the legal system to prey on low-income and marginalized individuals” ?

[mjbankhead]

...and don’t give them access to your banking information!

[mktemple]

I learned in my early 20s to NEVER talk to a debt collection agency but to eliminate the third party and talk only to the original debt holder. The debt collector is allowed to lie and do any number of shady BS to make their profits. But the original debt holder just wants what you owe them and no more.

[UltraHuman]

My debt collection story: I owed thousands in miscellaneous medical debt. I was cripplingly poor and couldn't pay on them. I incidentally changed my number and stopped receiving calls. Years later I checked my credit report and disputed all still existing claims. 80% disappeared within 30 days. Still being poor, I didn't do anything about the rest of the debts. After a few more years the next time I checked my credit report I only had about $125 total in collections from one company. I called and offered too settle the debt for $50. Since they waited over 5 years they seemed thrilled to get anything. The end. (Yes, my credit was complete garbage that whole time).

[mangaartist]

Wow, America is real innovative in terms of making everything, including life and death matter, into a profitable business.

[natalieung]

They never explained why they didn't pull the first 100 dollars into the first on the agreed date. Sounds like they did it on purpose

[fordkd]

This just reconfirms my commitment to never give them any information. Dave Ramsey says if you have to pay with an account number or credit card, go get a prepaid debit card to pay them or a money order. I wouldn't even write a check to them. Never give them any kind of access to your bank account. Sometimes debt collector become predators to get as much as they can out of you whether its seems fair or not.

[valerieannrumpf]

I had debt collectors call me for debt that wasn't even mine to begin with, it was for the tenant that lived there previously, so I told them that if they didn't stop calling me, I'll take legal action. That stopped them.

[Erika]

I appreciate this story! I agree with you on the story's takeaway, "When it comes to your finances, especially debt, leave nothing to chance.".

[mdovell]

Having worked in collections long ago let me address a few misconceptions. I learned quite a bit as a collector to the point where I saved, paid for higher ed out of pocket, have no debt and perfect credit. It was not easy, and I did curtail spending. Money can’t buy happiness but poverty can’t buy anything.
1) Always read everything you sign for everything in your life. Due to privacy laws debt material cannot disclose it is for debt. Read all your mail and email.

2) In many cases companies sell off the debt to another company. You cannot go back to the former company because they do not always have the rights to take it back, it’s like refinancing a house and going back to the other bank. A collections company can then send it to another and another and as years ago by no one really knows anything on it.

3) There are laws the govern collections. Look up FDCPA

4) The amount that is owed is a scale of severity. Less than $100 few would bother with. Above that you’ll get calls and mailers. Above $10, 000 that risks being called into court. Six figures? Never touched that but that’s probably civil cases. There’s a difference between owing money and having charges pressed against you. Small claims court is up to $10, 000. You had housing, which was already contractually set with terms and conditions, it was not some random collections bill.

5) Credit counseling organizations just stop activity which you can probably do on your own. They cannot stop bad credit. Credit largely goes up or down due to your own actions. If you want to live without credit and do everything with cash that’s fine but gradually window is shrinking, credit matters later on in life.

6) If you pay all your bills on time (not the next day but net 30) and in full then you have no issues. If you have an honest dispute bring it up asap. ID fraud is also possible. Collections usually doesn’t start until six months at the least.

7) Bankruptcy sometimes can be better then paying in the long run but it depends on your age and lifestyle. Remember you still must pay a bankruptcy attorney. Simply saying “call my lawyer” is useless unless you have one and give the contact information out.

8) Ask for an itemized bill. That easily slows things down a bit. Remember if they can’t say what it is for then it is a harder argument you should pay for it.

[cathyl]

What a scam! You were operating in good faith. They were not.

[LeahElizabeth]

Dave Ramsey does a great job in explaining how to deal with debt collectors 👍

[pattyaizaga]

I never deal with debt collectors nor do I ever confirm any details. If it comes to it (with medical bills) I deal with the hospital or doctors office. I set my own payment amount and they accept getting paid. If they dont and they send the account to collection agency, I never pay the agency. Instead go online to the hospital or doctor website and continue making payments until the debt is paid off. Collections agencies are scams.

[susanzurita]

Why does this remind of “Confessions of a shopaholic”?😂

[darlingmkxo]

I was making payments for a traffic ticket in another state I didn’t live in where they sent me the invoice monthly. At the time there was no electronic payment options, only check/money order that had to be mailed. I was almost done paying the ticket when one month I didn’t get an invoice. I didn’t bother to call or follow up. The next month I got an invoice that showed I had a late payment fee that was essentially doubled the price of the remaining balance I had. When I called to complain they told me it was still my responsibility regardless if an invoice was sent or not. I said ok but how am I supposed to just send a check/money order with no invoice to show what the money is for. The representative was no help. I was so mad I stopped paying it and told them I was going back to school with no income source which was true. A court deputy called me yearly to ask if I was done with school yet. Long story short it took me about 5 years to pay it off. I didn’t get anymore fees because it was on hold due to financial hardships but I still had to pay that sucker off. It was such a long time that the first clerk deputy retired and by then they finally had an electronic payment option set up haha

[thepseudonymthathidestheor]

This is why, when I financed my car (the first time doing so myself) in November and the first payment didn't come out on the day it was supposed to, I called the dealership immediately. They literally laughed at me and told me to wait a day. In the end it was just a delay between the payment being initiated and the debit hitting my account, but I am hyper-vigilant about paying my debts on time; I know a loan can be called back in full at any time if I miss even a single payment and I don't have that kind of money on hand. All this is to say... read the paperwork in full and if it's too much for you, contact a lawyer.

[KrystalToddCPA]

This is why it is important to get EVERYTHING IN WRITING with collections agencies because they will always play games like this! Even if you agree to make a partial payment to satisfy the entire debt they can do things like "forget" that it was suppose to satisfy the full payment and SUE YOU. There is a statue of limitations to how long they can sue you for but they will still threaten a lawsuit because too many people don't know this so know your rights!!

[AbroadonaBudget]

It's wild how little American citizens are protected from this kind of predatory behavior. Any kind of debt collector acting in this manner would be absolutely illegal and so many other countries where there are better consumer protections and more clear limits on what debt collectors can and cannot do. The endlessly exorbitant late fees and service charges and ways in which they can make a debt literally double in size due to late payments are also illegal or severely restricted in many other Western countries. When you consider the fact that the social safety net is very small for unexpected life events like devastating illness or unemployment, which severely impacts your income, it's even more frustrating that people are allowed to be so extravagantly punished for late payments or not being able to meet their payment due dates. tag on the exorbitant cost of healthcare, and the way in which a lot of people have to put those cost on credit cards, or cut corners other places, and you really start seeing how grossly unfair the entire picture is. this isn't about a single person playing victim, or not taking responsibility, it's about how the system works together to maximize profits for these debt collectors and companies, while setting up a context in which it is more likely for people to fail to meet their financial obligations.

[carla]

Debt collectors are predatory and it is not a good idea to do business with them and DO NOT EVER GIVE THEM YOUR BANKING INFORMATION!!! Remember they are a business and not a friendly one at that, They will go to any devious lengths to make a profit.. Some debt collectors are not even hired by the company you owe meaning they got their info by requesting your credit report. Yes, they can do that!! there is no regulation against that.. You had been better off calling the creditor and ask them to make payment arrangements and I hope you won't do this again.

[delvesdg]

If you can't or are unwilling to pay a debt DO NOT, I repeat DO NOT divulge personal information such as employer, and bank account. By divulging this information you are giving them consent, or at least access, to garnish wages or take money directly from your bank account.