How to Handle Debt Collectors
When economic times get tough, more people experience the dreaded calls from debt collection agencies. Whether it is you who has fallen behind on your bills or someone close to you, there are a few things that you need to know before picking up the phone. Debt collectors usually work on a commission and they are extremely motivated to get as much money as quickly as possible, which typically means they will be as demanding as possible on the phone. Fortunately, there are several things you can do to ease the strains of your relations with a debt collector.
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Things You'll Need
- Patience
- A pen and paper or computer for documenting phone conversations
Instructions
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First, when a debt collector calls you, get as much information from him as you can. You will want not only the name of the debt collection agency, but also of the bill collector you are speaking to. Ask for the debt collection agency's address, phone and fax numbers. You also need to know the amount owed on the debt, both before and after the collection agency's fees, and the name of the business that you owe the initial debt to, to ensure that it is really a debt that you owe. You will need to request that the debt collection agency draft a document showing this amount in writing and mail it to you.
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Second, realize that by law, debt collection agencies cannot harass or threaten you. Debt collectors will often try and use deceptive practices, such as threatening jail time, on unknowledgeable victims to force them into repaying a debt. The Federal Trade Commission has established Fair Debt Collection policies that have strict restraints on what bill collectors can and cannot say. They clearly define what constitutes as harassment, and debt collection agencies that do not comply can face severe fines.
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If you find yourself unprepared financially to handle this situation at the moment and don't want to be plagued with recurring phone calls from debt collectors, you have the right, by law, to request that a debt collector cease contact by phone and only correspond with you in writing. This is why it is important in the initial call to gather the debt collection agency's address, as you will need to send your request to the agency in writing, via certified mail with return receipt. These companies are required by law to oblige your request. Should they fail to do so, they can once again, face fines from the local, state or federal government.
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Now that you've stopped the harassing phone calls from the debt collector, you can concentrate on the debt. Back in step one you requested that the debt collection agency send you, in writing, the amount submitted to them by the company you initially owed, as well as the amount they wanted, after having tacked on their fees. These debt collection agencies will negotiate. It may not be easy, but do not feel overwhelmed by the outrageous amount of fees they will try and add on to your debt. Through you're newly established written correspondences with the debt collection agency, you can successfully trim the amount owed. They would rather get something from you than nothing. Debt collection agencies typically purchase these debts for pennies on the dollar, so offering even half of the amount you initially owed in one lump payment may be enough to get them to bite. Remember, though, before you send them any money, get the details of the settlement in writing. Debt collectors are notorious for trying to still come after individuals that have sent in money on the assumption their debt would be paid in full. Don't let that be you.
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Debt collection laws mandate that a debt collector simply cannot: refuse to provide you with the debt collection agency name; curse at you or use threatening language; use deceptive practices, such as claims of arrest and jail time for failure to pay; or refuse your request for written notice and correspondence.
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Tips & Warnings
Don't let the negativity of the debt collector or your situation bring you down. If you are unsure of how to handle a debt collector, seek advice from a local professional.
Do not ignore debt collectors, as they can file lawsuits against you for owed debts and you will end up paying much more money afterwards, as well as court fees.
