Debt selling and buying is big business so it’s no surprise that debt collectors can be difficult to shake. Even if you pay off the balance owed, you can still be pestered by a collector who’s working off an out of date record.
What happens is that the original creditor has tried to collect on a past due account, but the accounting department has made them stop so they can write off the account as a loss. Sometimes they sell that account info to a 3rd party debt collector that is less restricted in the means and methods they can employ to collect that past due amount.
So what should you do if you find yourself fielding calls from debt collectors?
Well, assuming you actually do owe the money they say you do then you should first try working out a plan with them to pay off the debt. Some debt collectors don’t really care if you have enough cash flow to make regular payments however, and will still try to get the full amount from you.
If working it out on your own doesn’t work, then you may want to look into a debt management plan. A counseling agency may have better luck getting the collector to accept an affordable payment plan. Just be sure to meet with a certified counselor at an accredited nonprofit agency, because working with a shady debt counselor can ruin your credit, and most only charge you for what you could do on your own.
You can find a list of agencies on the Web sites for the Association of Independent Consumer Credit Counseling Agencies or by calling 866-703-8787, and the National Foundation for Credit Counseling, 800-388-2227.
If you are dealing with debt collectors who are unwilling to work with you or a credit counselor, here are 3 steps to follow:
When dealing with a debt collector on the phone, keep these in mind: keep the conversation on a business level, and request that they send you written verification of the debt you owe. Don’t expect a warm reception, but don’t cop an attitude either – remember, you’re the one who broke the deal to repay the debt.
After you have received the information and you have verified that the debt is really yours and not due to identity theft or some other circumstance, send them an written offer stating your desired monthly payment. Send this by certified mail – it’s worth the extra cost.
Finally, be sure to get the collector to agree in writing to the amount owed and your monthly payment plan to repay the amount completely. Expect the collector to try and increase the amount, or haggle with you on how much you should pay. Just make your offer fair and stick to it – remember, they need to get paid something and probably don’t expect to get the full amount paid anyway.
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