How To Deal With Collection Agencies?

Answer 1

Dealing with a collection agency can be very difficult for people. Debt is stressful enough. When you factor in the high pressure tactics that many collection agencies use, your stress will be amplified. When people receive their first collection call, they often don't understand what to do. Dealing with a collection agency requires some basic knowledge. Here is a little guide on how to deal with a collection agency.

The first thing you should do is understand your rights under the Fair Debt Collection Practices Act. This law is designed to protect consumers from unsavory practices that many collection agencies employ. The law has many guidelines. For example, collection agencies can only call you between certain hours. They cannot make any threats regarding legal action unless they plan to take them. There are also limitations to how many times a collection agency can call you. You can inform them not to call you at work. There are many rights you should be aware of before talking with a collection agency.

Another important to tip is to know your debt situation. Often times, collection agencies will collect on debts that are too old. Other times, they will demand too much money. They have a goal of getting you to pay them right then over the phone. This is not a wise idea. You should always request information in writing. Collection agencies are required to validate a debt within thirty days. All you have to do is send a letter requiring validation. They have that time frame to respond. Often times, collection agencies won't even bother responding to you. This protects you legally. Along these lines, make sure you get any and all arrangements in writing. If you and a collection agency representative agree to something over the phone, assume it isn't valid until you see it in writing. Generally speaking, it is not even a good idea to admit to a debt or even confirm your identity over the phone. If they keep on calling you, send a cease and desist letter. If you do talk, you should always record your calls. This will protect you in the court as well as provide you proof of FDCPA violations. Inform the collector that you will be recording the call. Many times, they will simply hang up. That is a sure sign that they aren't legitimate.

Lastly, never give your financial information over the phone. Many collection agencies will want you to reveal bank account information over the phone. In too many cases, they take out too much money or raid your account entirely. If you know the debt is valid, offer to pay via the mail. If the collection agency is legitimate, they will be open to this idea.

Answer 2

It is difficult enough to deal with bills that you aren’t able to pay and even moreso if you have to deal with collection agents calling continuously to get you to pay money you don’t have. Understanding your legal rights with bill collectors can make dealing with them a little bit less stressful.

Collection agents have to follow rules just like any other form of employment. They cannot harass debtors or use threats of violence or harm. They are also prohibited from using obscene language. When speaking with a collection agent always try to get the name of the person you are speaking with and the contact information as soon as the phone call starts.

Bill collectors are also not permitted to call at inconvenient times such as before 8 in the morning or after 9 at night. It is important to keep track of which collection agent is calling, the time of day, the date and exactly how many times they call during a single day.

If you have a collection agent calling you at work, you can notify them in writing that you are not allowed to receive such phone calls at your place of employment. If you have requested in writing that they stop calling you, they must not contact you except to notify you of further legal action or to let you know that they have received your notice and will not be contacting you.

Any correspondence that is sent to a bill collector should be sent certified and return receipt requested so you have proof of the mailing. If the collection agency violates any of the provisions of the Fair Debt Collection Practices Act, you will need to have copies and information proving the violations. These violations can be reported to the Federal Trade Commission and have resulted in lawsuits and class action lawsuits against many collection agencies for large amounts that include damages and attorney’s fees.

Keep in mind that the cost of going to court as well as a potential lawsuit is something that collection agencies want to avoid. Many bill collectors will stop harassing you once they find out that you are aware of your rights when dealing with them.