Baycorp – A Debt Collection Company

Debt collection companies always amuse me (and not the good amusement). Accordingly, I have dedicated this post to closer scrutinise them.

For most of us, we often first come into contact with a debt collection company after we have failed to pay our late fees at the local video store. I myself have tried to out-smart places like Blockbuster and Video Ezy by simply going to another video store after numerous late penalties have been accumulated. Video stores don’t like it when people do this, so that’s when they seek the services of professional debt collectors. In fact, this is so popular in the video store industry, that there are special debt collection services set up to cater to video stores, such as Entertainment Recoveries (you would have got a threatening letter from them if you haven’t paid your late fees at the Scarborough  Video Ezy (in Western Australia))

How does one become a debt collector?

I really don’t know how to describe the debt collecting profession. I have thought long and hard about what level of education and skill one needs to become a professional debt collector.  Well naturally the first thing I did was google “how to become a debt collector.” Success. The second hit lead me to suite101 which speaks about the level of training needed to join this respected profession. Suite101 reveals that all one has to do  is take a short online course and upon successful completion (which wouldn’t be hard provided you can read and have access to the internet), you get a certificate saying you’re a qualified debt collector. It receives the same amount of respect as wearing a plastic cowboy badge found in a cheap toy set.

The reality is that this certificate is not a requirement to enter this noble profession. Much like telephone operators, the only pre-requisites are:

1. The applicant can speak;
2. Understands English (preferred but not required);
3. Has some experience operating a telephone;
4. Has attained a minimum educational level of grade 3 (or equivalent).

Baycorp

In order to further educate the public about this topic, I have decided to do a case study on a large debt collection agency. Today, I have chosen Baycorp.

Please feel free to have a look at Baycorp’s website.

After spending a little bit of time on the site, I am amazed at how highly skilled the marketing department of Baycorp is at spinning sh!t. The reality is that Baycorp is a business which has an objective to get back as much $$ from ordinary people for big corporations as they can.

If you have a closer look at the heading entitled “Our role in society,” they state they provide:

“asistance to people who have become unable to fulfil their financial obligations and help them to manage and repay their debts. The benefits include reducing stress to defaulting customers and providing them with greater financial flexibility..”

Wow, I thought these guys just wanted the $11.30 incurred in late video fees, but they really want to be my friend.  I have to make sure I remember to send these guys an invitation to my next birthday party.

Let’s take a closer look at their site.

You will notice that there are 3 people in the top banner who are smiling like it’s Christmas. Why would anyone who went through the unpleasant experience of a stranger calling them for money be so uncontrollably overcome with joy?

I wanted to find out more, so I went to the Frequently Asked Questions part of the site.

Question 1: I have paid my account. Why can’t you remove it from my credit history?

Answer:

Even if you have paid your account, your credit history has to remain accurate and complete. Records of outstanding accounts are required to be listed with a credit reporting agency as part of the debt collection process for a certain number of years, and will only be removed if the account was incorrectly lodged with the bureau in the first place. Banks and financial institutions use this information to make business decisions on whether to offer credit to an individual, and it is therefore necessary for them to have access to full and accurate data.

I just love this response. You still get f$ck@d if you pay back the money. And the spin in that answer; a beautifully crafted distraction is set up removing the the reader’s attention from the fact that they still get a sh!t stain on their credit record no matter what by highlighting the importance of providing “accurate and complete” information.  Like they’re doing some sort of charitable benefit for humanity.

Question 5: Legal action has started on my account. I can’t pay in full but I can pay it off in installments?

Answer (part):

With all legal action we recommended that you pay your overdue account in full.

What happened to all that flexible and stress free sh!t that you guys were talking about when talking about your role in society?

Question 6: Why do you need all my contact details?

Answer:

It is important that we are able to correctly identify you and establish if the debt belongs to you. If your contact details are complete and up-to-date, we are in the best position to discuss your situation and provide assistance.

Look how they lined it up, stating that they want to“establish if the debt belongs to you.” Of course it belongs to you, they know that, you know that. They need to find where you live so they can serve you with the court summons because otherwise if they didn’t have your address, it will be a lot more expensive for them to find you. Often, a large portion of the money they spend in trying to find where you are is not recoverable if it goes to trial. It is in their best interest if they have suckers that call them and tell them where they live.

Practical tips on how not to be a sucker?

1. If it’s a low debt, chances are they will not be spending over $100 to file a court summons. Remember, they can threaten legal action all they want, but a $11.30 claim is probably not going to be worth the expense of litigation.
2. They are not lawyers (although some have a legal department). Outlined above is the level of qualification needed to be a debt collector. It falls far short of the 4-5 years needed to become a solicitor.
3. The smart-ass kid on the phone is probably way poorer than you. Chances are he or she hasn’t got high aspirations in life and is likely settling for a menial existence.  Please keep this in mind when speaking to them. Often, this is their only opportunity to assert some sort of power in their otherwise trivial existence. These guys got tricked into paying money for an online course that promised them a certificate. They got scammed worst than those people doped by  Nigerian emails promising millions in lost inheritance.

Debt collection companies….trying so hard to portray a positive public image…vomit!