How To Deal With Debt Collectors

Dealing with debt collectors becomes easier when you’re aware of the tactics, basic laws and consumers rights that can hinder them from ruining your life. No matter why you ended up delinquent on your accounts, dealing with debt collectors is humiliating and infuriating. Negotiating with debt collectors in order to clear the debt is a good option. However, there are a few steps that you can take to ensure that you will not be taken advantage of.

1. Find out if they are an actual Collection Agency (CA).

If the collector is under a CA, then you have a good chance of settling a lower amount with them. CA has to make money no matter what, for they might have purchased your old debt for pennies on the dollar. This gives you a chance to negotiate for a smaller overall payout.

2. Don’t hide.

Never avoid them. If you do this, things may get worse. The collectors may take you to court and get an order against you. If you need to buy extra time, you can request that the debt collector provide you with proof that you actually do owe the debt. This gives you about thirty days to come up with the money to pay it, and during that period, they are not allowed to contact you.

3. Track your conversation.

Keep a record of the bill collectors you’ve spoken to, the time and summary of your conversation. This can be your proof against bill collectors who violate the law. You can even tape the conversation (secret taping is allowed by 35 states and the District of Columbia). But if this is not allowed, just take the collector’s permission before you tape the conversation.

4. Read the FDCPA.

You have rights, but your debt collectors are putting money on the fact that you may not know them. The first step is to read through the Fair Debt Collections Practices Act. This tackles the dos and don’ts when collecting payments. You can get some great tips on how to handle the situation from this act and your debt collector’s won’t be able to pull the wool over your eyes any more.

5. Don’t be threatened.

Debt collectors can be very shady. They will threaten you with criminal arrest, they’ll threaten to ruin your reputation. Legally, they cannot do this. You cannot be arrested for a bad debt, unless there is a bad check involved. Once again, read the FDCPA act to get a clearer understanding of all of your rights.

The FDCPA has a reporting system in place where you can get assistance if you are being harassed by a creditor or a collector. If you are getting calls in the middle of the night, being unduly harassed or actually threatened, you do have recourse.

6. Use Cease and Desist Letter

In case you wish to contact the creditor and deal with him directly regarding payment of your debt, you can request the CA to stop contacting you. This can be done by sending them Cease and Desist Letter.

Do not be intimidated with those debt collectors. Stand up for your rights. They only like to deal with people they can intimidate and once you know your rights, you will have a lot more power that you can assert.