Last week, I received an email from a debtor whom is asking for my advice regarding her situation. The email sender claims that she experience being “harassed” by a collector of a particular collection agency.
As a Professional Bad Debt Collector myself, having handled one of the biggest receivables management department when I was still with CIBI, the leading business information and receivables management company in the Philippines, I am not condoning any form of delinquencies, evasion and non-payment of a valid account. However, what I am advocating is that there is what we call “ethics in collecting” or professional rules of engagement being outlined by no less than the Bangko Sentral ng Pilipinas (BSP) under Cir. 454 Series of 2004.
Let me share with you the content of the email (portion of which were edited to protect identities), her email reads:
“Dear Sir, Good day! I am unemployed since Sept. 2010, and I have unsettled accounts to several credit cards. I can't afford to pay for the meantime since I am jobless because I had a high-risk pregnancy and recently gave birth to my child. There are several collector agencies that kept calling and harassing me over the phone, they even shouted at my 12 year old cousin which traumatized her. And one time, upon explaining to them my condition the agent then shouted at me saying, "GANITO NA LANG, IYO NA LANG UNG UTANG MO IPAMANA MO NA LANG SA ANAK MO!", then she dropped the phone which left me speechless. After several weeks, another person called up offering to pay a discounted amount in full at a short period of time which is still higher than what I owe the bank. I told them I couldn't settle it for now because I'm still jobless and asking them if I could settle a small amount just to prove them that I'm willing to settle my pending obligation, but they didn't agree, they want the full amount asap. The next day, they visited our home and gave me a letter with an instruction to contact a person from (name of law office). Upon leaving our place, someone called up asking me if I already received the letter, and I said yes. She offered me a discounted amount which is again higher than what I owe the bank and told me to settle it in full. Again, I told her that I have no funds for that yet. She suggested that I should loan from someone just to pay them the soonest time possible or they will sue me. The next day, which is Saturday, I received a text from them saying: "Ms. (name of debtor), ur defeaning silence & non response indicates ur unjust intent not to settle ur (credit card name) account, we regret to inform you that we will conduct an ocular inspection again/visitation either to ur office or ur residence for an assessment of ur (real and/personal) properties, for d purpose of determining d practicality and viability of filing d necessary complaint against u b4 d Trial Courts of (name of City) relative to ur unpaid credit obligation to our client for us to recover wat u owe to our said client. In d event dat an xtra-judicial settlement is not made, we shall resort to filing of d a appropriate case in court. Be advice. What shall I do with it Sir? Please advise”.
***
Next week, I will discuss BSP’s Cir. 454 Series of 2004 Sec. 7 which clearly states: “…collection agencies, counsels, and other agents must observe good faith and reasonable conduct and refrain from engaging in unscrupulous or untoward acts…”
For comments, rejoinders and questions related to credit & collection send emails to elimtingco@yahoo.com.