Being in debt is never a happy experience, but it can be down right detrimental to your health, wealth and happiness if that debt goes to a collection agency. Here’s what you should know about dealing with debt collectors.
Figure out what you’re dealing with.
The first thing you want to do is determine whether the debt is really yours, and what the particulars are.
1. Just the Facts, Ma’am.
Take a page from the fictitious police detective Joe Friday of T. V.’s Dragnet and get the facts. By law, the collection agency must provide you with the following in its first letter to you:
- The Name of the creditor
- The amount of initial debt owed
- Details of any penalties and interest that have accrued
- An explanation of your rights
Be sure to request a written letter detailing these if the collector calls you.
2. Make sure it’s real.
If you don’t recognize the debt, or the creditor you can and should write a letter disputing the claim. Include copies of any documents that support your side of the story. Be sure to send the letter by certified mail and request receipt. The burden is on the creditor to prove you owe the debt, and if they cannot then they must cease and desist.
If it’s real and it’s really yours, then step up and deal with it.
If the debt really is yours, then it is your obligation to pay it. But that doesn’t mean you need to be victimized.
3. Don’t stand for harassment.
Just because you owe a creditor money does not allow them to harass you. Collection agencies are not allowed to call you between the hours of 9PM and 8AM. They are prohibited from using abusive and threatening language. Furthermore, if you prefer not to be contacted by phone at all, you can request that all future contact be made in writing – and if that request is made by your lawyer, then the collector must communicate exclusively with him from that point on.
4. Craft a plan.
Work with the collector to develop a payment plan. Make it realistic – if you promise something you cannot deliver, and the claim goes to court and you lose, you could have your wages garnished.
Don’t be abused.
If the debt is yours, and you’ve tried the tips outlined above and the collector is still harassing you, it’s time to get tough.
5. Turn them in.
If all else fails, and the collector is still harassing you then report them to the FTC. The Federal Trade Commission is responsible for enforcing the Fair Debt Collection Practices Act protects consumers from abusive and annoying practices of 3rd party debt collectors. Also contact your state attorney general’s office.
6. Sue them.
If all else fails, and they are clearly in breach of the protections to keep you safe from harassment, then you can take them to court. You cannot, however, sue them if they follow protocol on a valid debt, only if they are threatening and harassing or the debt is clearly not yours. To find a lawyer, check out National Association of Consumer Advocates website
The absolute best way to get rid of debt collectors.
7. The nuclear option.
The 100%, tried and true method for getting debt collectors out of your life once and for all is to pay off your debt or avoid it entirely. It’s that simple. If you never want to deal with the often sub-human species known as the debt collector, avoid debt whenever possible and pay down the rest in a timely fashion.
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