Could you collect more in a panther outfit?
October 16, 2008 by Shane BorerPosted in: "Seemed like a good idea at the time", Contract disputes, Special report
Every company deals with a slow-paying customer now and then. Now there are some costumed alternatives that’ll get funds rolling in. Spain’s economy has seen better days. But for debt collectors in the country, business has never been better. El Cobrador del Frac — “The Debt Collector in Top Hat and Tails” — has had to hire 150 new collectors in the past 6 months just to keep up with demand.
The company’s secret: Use costumes and attention to embarass companies and individuals into paying their bills. El Frac, as it’s known, owns a fleet of vehicles emblazoned with the company’s logo on the side. Once arriving at their destination, employees dressed to the nines catch the attention of neighbors and surrounding businesses before doing their work.
So far, the tactic’s been profitable for the company — it has a success rate of more than 60%.
The collection company says it provides a vital service, especially for small- to mid-sized businesses that might not have the resources to collect everything they’re owed.
Of course, the company’s tactics are hard to ignore for many debtors. They’ve been so successful that several other companies in the field are taking similar approaches, outfitting their employees as bullfighters, Zorro or the Pink Panther.
Two other sources of main competition:
- The Scottish Collector, which sends a bagpipe player in full highland dress to debtors’ businesses or homes, and
- The Monastery of Collection, whose workers arrive dressed as Franciscan friars and chant until the owed amounts are paid.
But El Frac is still on top of the debt-collection game. When one Madrid couple refused to pay the bill for a wedding reception, the company obtained the guest list. It then called those on the list and said the people would be individually charged for their food and cake because the family wouldn’t pay up. The couple paid the sum within hours.
What do you think? Do these companies have a right to collect payment any way they can? Are their tactics bordering on the verge of harassment, or is all blame on the debtors? Let us know what you think in the comments section below.
Tags: Bullfighter, Debt collectors, El Cobrador del Frac, Limited resources, Spain
October 16th, 2008 at 6:32 am
I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.
Tim Ramsey
October 17th, 2008 at 1:42 pm
Brovo, hats off too the person or persons that came up with the idea.
October 17th, 2008 at 2:10 pm
Don’t know if this would work in the U.S. but might be worth a try!!!! I’ve thought that we should send the past due accounts bills out in a different colored envelope to draw attention to them but I doubt that would even fly in the U.S.
October 17th, 2008 at 2:13 pm
This is the best idea I have come across. Hats off to them.
October 17th, 2008 at 2:13 pm
I am a new reader to the blog too. I love these ideas! I think any way to get the debtor to pay is fine. If you can’t pay for it, then you didn’t need it!
October 17th, 2008 at 2:26 pm
Anything, within the law, that gets their attention and distinguishes one vendor from another , is a great idea. I’ve gone as far as to send 6-month & 1 year anniversary cards on past due balances
October 17th, 2008 at 2:31 pm
Taking what you can’t afford, with no intention to pay, is no different that sticking up a Kwik Shop. It’s all stealing. Embarassment is a small penalty to pay for the same crime.
October 17th, 2008 at 3:07 pm
Great concept! Not sure some of it would fly in the U.S. especially the part about the wedding guest list. Something to be said for public awareness!
October 17th, 2008 at 3:36 pm
Cute, but borderline harassment, especially involving the wedding guests. Be careful not to jeopardize your right to collect.
October 17th, 2008 at 4:43 pm
This would never work in the U.S.
They would be shot on site.
October 17th, 2008 at 5:10 pm
bagpipes eh? and you think we americans are torturing people.
October 17th, 2008 at 5:14 pm
This is pretty ridiculous and more than borderline harassment. Sure you definitely have true deadbeats out there who never had intentions of paying things off (like couple refusing to pay for the wedding service)… but what about the family who bought items or services at the time they could afford then a sudden tragedy happens or some sudden streak of terribly bad luck happens and their world is turned upside down (the ever crumbling world economy anyone?)? As they’re trying to right themselves and get back on their feet and pay back their debts the last thing they need or want is to be harassed publicly and have their misfortunes broadcasts to those around them. Or hey, what about when there is an error in a vendors system like a mistaken identity or other glitches? Happens more than you think. I recently had it happen myself where I had to battle it out with a collections agency due to an error in the sytem, it was eventually cleared up, but would it have been ok having some jerk harassing me outside my home or office and ruining my character/reputation even though I was in the right??? I think this whole thing is asinine, and given the mindset of people here if its something that was actually picked up in America, I’d wager you’d see a huge upswing in hospitals admitting beat down costumed freaks…
October 17th, 2008 at 5:39 pm
I have also heard of collectors putting a fish in a rain coat and letting it rippen for a day before wearing it to visit debtors. Of course, it helps if the collector does not have an ability to smell!
October 17th, 2008 at 5:46 pm
I’m a little fuzzy on the FDCPA since leaving the collections field, but I’m pretty sure that wouldn’t fly in the US. Especially the calling of other people, that’s a big violation of confidentiality. Back in the day collectors used to go to debtors homes but I’m pretty sure that’s not legal now.
October 17th, 2008 at 5:56 pm
Actually, different colored envelopes for past due bills have been used in the US. It just made it easier for the deadbeats to know which mail to toss into the trash. I know a couple of businesses that have a big sign outside where they post ” ____ ____ PLEASE PICK UP YOUR BAD CHECK” with the persons name filling in the blanks. Seems to work pretty well - names don’t stay up long.
I don’t know why the ideas in the story wouldn’t work here other than (as Obamonkey pointed out) there are plenty of morons that would rather face the penalties for shooting someone than pay the bill.
October 17th, 2008 at 6:27 pm
This would be very illegal in the US, a clear violation of the Fair Debt Collection Practices Act, which speicifically prohibits a collection agent from informing anyone but the debtor that they are trying to collect a debt. And at $1500 per violation, it can quickly cost the debt collector more than they are trying to collect. Given how abusive most debt collectors are, this is as it should be.
October 17th, 2008 at 6:32 pm
It’s illegal in the United States.
http://en.wikipedia.org/wiki/Fair_Debt_Collection_Practices_Act
October 17th, 2008 at 6:48 pm
Yeah, someone taking a service without an intention to pay is totally stealing.
But what about those of us who have fallen on hard times–lost a job, a loved one, etc.
Are we criminals too just because our needs/income/life circumstances changed?
Evidently so.
October 17th, 2008 at 6:50 pm
Wow! I’ll just grab my wizard costume and the next plane to Spain! I can be paid to be a costumed character and not have to apply to Disney? I’m sold!
October 17th, 2008 at 11:32 pm
Some of the large agencies can & do work in the gray (earning bad rep.s), but you never seem to hear about the collectors that take the time to work with people. We all know life happens particularly with medical bills, it’s not a TV you bought with a credit card… You needed services… it is not a crime to owe a bill… but everyone has a responsibility to try & repay the debt….I have had thank cards, flowers and calls make to my boss to let them how nice, kind & understand I have been…. for those people that flat refuse to pay & throw in a few choice words to make their point I have the option of request suit against them … It would be nice to have other options open for dealing with such people besides suit… but for better or worse of the nation it isn’t allow per the FDCPA… but I wish the collectors in Spain all the best & happy collecting … Get as much as you will you still can….
October 18th, 2008 at 2:13 am
Very funny, until one of these clowns gets their lights punched out, or maybe shot while tresspassing on the debtor’s property. That is is exactly the action I would I would take if I were so harrassed … Who pays THAT bill?
October 18th, 2008 at 7:19 am
This service would be illegal in the USA as it is against federal law for a collection agent to make his/her attempt to collect a debt known to anyone other than the debtor without a court order in which case the state would be in charge of collection. As DC mentioned above regarding businesses that display bad checks in store windows, this is highly illegal also. The person who wrote the bad check could sue to have the entire debt negated and collect a liability payment as well.
October 18th, 2008 at 4:24 pm
Yeah, as already stated above, it would never work in the USA becuase the Fair Debt Collection Practices Act is a federal law that prohibits a debt collector from any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Well, that and the fact that they would get their lights punched out or simply shot. Especially the bagpipes guy.
October 18th, 2008 at 5:02 pm
Thank god that’s not happening here in the USA. Being in debt is one thing but being harassed to the point of jeopardizing your family, friends and work is another. Granted, the wedding reception couple tried to take advantage of the caterers but that what laws are for. Civil proceedings would come into play, not calling the guest list and using them as a leverage tool. Not only did the debt collector harass the couple that owed them money but also their guest who attended the wedding. I’m sure a guy in a pink panther suit showing up at my door to collect on a credit card that I can no longer afford to pay would be quiet a sight. Matter of fact, that would be a kodak moment. I would have him stand there while went to get my camera. Then if more collectors came in other costumes I could start handing out candy like it’s Halloween. Hey, I never get trick-or-treaters anyways. LOL.
October 18th, 2008 at 7:50 pm
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