How to Deal with Debt Collectors
Verify the debt before you do anything else., Get all information in writing., Say as little as possible., Be polite., Understand what the debt collector can and cannot do., Ask the debt collector to stop contacting you.
Step-by-Step Guide
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Step 1: Verify the debt before you do anything else.
Whether you're familiar with the account the debt collector mentions or not, make sure you have a written account of what the debt collector claims you owe, including the company with which you originally opened the account and the dates the account was opened and closed.
Upon initial contact, federal law requires the debt collector to identify herself as a debt collector, state and she is attempting to collect a debt and that any information obtained from you will be used for that purpose.
In any subsequent communications, the debt collector can simply tell you her name and the collection agency's name.The FDCPA requires debt collectors to cease collection activities until they've sent you verification of the debt, so this request should stop the harassing phone calls and letters for a little while.When you answer a debt collector's phone call for the first time, ask the representative to tell you her name, the name of the collection agency, the collection agency's address, the name of the original creditor, and the amount the collection agency claims you owe. -
Step 2: Get all information in writing.
Before you agree to anything or make any payments, make sure everything you've been told about the debt is in writing so you have documentation in the event of a dispute or miscommunication.
The FDCPA gives debt collectors five days after they've initially contacted you to send you written notice of the name of the creditor, the amount of money you owe, and what you can do to dispute the debt.Write down everything the representative has told you on the phone, then ask her to send you a letter stating the same information.
They should already have your address.If you receive a letter from a collection agency first, rather than a phone call, the details should be stated explicitly.
If the letter is vague or threatening, make a copy of it and then write them back.
Include the copy of the letter you received and explain what information you need., Understand that some things you say may be construed as acknowledging the debt.
Debt collectors sometimes buy debt for which the statute of limitations has already run, meaning the lender can't sue you to collect.
However, you may restart the clock on the statute of limitations by acknowledging the debt or making a payment.
The statute of limitations for consumer credit usually is between three and six years.
Check your state's law and then check the date of your last payment or acknowledgement of the debt and see if a lawsuit would be time-barred.
Keep in mind that any payment or acknowledgement by you that you owe the money and the debt is valid may re-start the clock and give the debt collector time to sue.Even if you know you owe the money, avoid making a good faith payment of any amount until you've received a written statement and checked the dates against the statute of limitations for consumer debt in your state.
You can make offers of settlement, or explain why you can't pay.
However, you generally should refrain from making promises to pay in the future, or agreeing to pay a certain amount.The representative who calls you is trying to determine if you have the ability to pay, and will keep you talking as long as you're willing.
Try to keep the conversation as short as possible.
Stick to the facts, demand everything in writing, and stand firm., Keep in mind that the person calling you is only doing his job, and try not to take your frustrations out on him.
Getting angry or emotional may end up counting against you later on if you decide to file a harassment complaint.
Keep in mind that these companies often record their phone calls, so if you get upset or lose your temper with the representative, you've become the abusive one.Although you may want to hide from the debt collector, you should remain calm and deal with the situation head-on.
Treat anyone who contacts you with basic human respect.
Make sure the debt collector has your current address and phone number so they are calling or sending letters directly to you, not to someone else they think is you, or a friend or family member they think may have knowledge of your whereabouts., The FDCPA restricts debt collectors from engaging in certain practices such as calling you at all hours of the day and night or contacting your employer.Specifically, federal law prohibits debt collectors from calling before 8 a.m. or after 9 p.m. unless you authorize them to do so.
For example, if you work fourth shift, you may have different hours that would be considered reasonable to you.Debt collectors also are forbidden to use abusive or obscene language, to harass you with repeated phone calls, or to threaten to sue you, garnish wages, or seize your property unless these are actions they actually intend to take.If a debt collector is harassing or abusing you, simply put down the phone and walk away.
You don't have to deal with that kind of treatment.The FDCPA also prohibits debt collectors from lying or making misleading statements.
For example, a debt collector can't claim to be a law enforcement agency or suggest that he is connected to the government, or lie about the amount of money you owe or will owe., If you want the debt collector to stop contacting you at all, you can ask them.
Under the FDCPA, they have to stop contacting you if you make the request – but it has to be in writing.If you really want them to stop contacting you, send them a letter using certified mail.
However, keep in mind that no matter how annoying they may be, asking them to stop contacting you entirely might not be in your best interest if you know you owe the money and want to negotiate a settlement. -
Step 3: Say as little as possible.
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Step 4: Be polite.
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Step 5: Understand what the debt collector can and cannot do.
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Step 6: Ask the debt collector to stop contacting you.
Detailed Guide
Whether you're familiar with the account the debt collector mentions or not, make sure you have a written account of what the debt collector claims you owe, including the company with which you originally opened the account and the dates the account was opened and closed.
Upon initial contact, federal law requires the debt collector to identify herself as a debt collector, state and she is attempting to collect a debt and that any information obtained from you will be used for that purpose.
In any subsequent communications, the debt collector can simply tell you her name and the collection agency's name.The FDCPA requires debt collectors to cease collection activities until they've sent you verification of the debt, so this request should stop the harassing phone calls and letters for a little while.When you answer a debt collector's phone call for the first time, ask the representative to tell you her name, the name of the collection agency, the collection agency's address, the name of the original creditor, and the amount the collection agency claims you owe.
Before you agree to anything or make any payments, make sure everything you've been told about the debt is in writing so you have documentation in the event of a dispute or miscommunication.
The FDCPA gives debt collectors five days after they've initially contacted you to send you written notice of the name of the creditor, the amount of money you owe, and what you can do to dispute the debt.Write down everything the representative has told you on the phone, then ask her to send you a letter stating the same information.
They should already have your address.If you receive a letter from a collection agency first, rather than a phone call, the details should be stated explicitly.
If the letter is vague or threatening, make a copy of it and then write them back.
Include the copy of the letter you received and explain what information you need., Understand that some things you say may be construed as acknowledging the debt.
Debt collectors sometimes buy debt for which the statute of limitations has already run, meaning the lender can't sue you to collect.
However, you may restart the clock on the statute of limitations by acknowledging the debt or making a payment.
The statute of limitations for consumer credit usually is between three and six years.
Check your state's law and then check the date of your last payment or acknowledgement of the debt and see if a lawsuit would be time-barred.
Keep in mind that any payment or acknowledgement by you that you owe the money and the debt is valid may re-start the clock and give the debt collector time to sue.Even if you know you owe the money, avoid making a good faith payment of any amount until you've received a written statement and checked the dates against the statute of limitations for consumer debt in your state.
You can make offers of settlement, or explain why you can't pay.
However, you generally should refrain from making promises to pay in the future, or agreeing to pay a certain amount.The representative who calls you is trying to determine if you have the ability to pay, and will keep you talking as long as you're willing.
Try to keep the conversation as short as possible.
Stick to the facts, demand everything in writing, and stand firm., Keep in mind that the person calling you is only doing his job, and try not to take your frustrations out on him.
Getting angry or emotional may end up counting against you later on if you decide to file a harassment complaint.
Keep in mind that these companies often record their phone calls, so if you get upset or lose your temper with the representative, you've become the abusive one.Although you may want to hide from the debt collector, you should remain calm and deal with the situation head-on.
Treat anyone who contacts you with basic human respect.
Make sure the debt collector has your current address and phone number so they are calling or sending letters directly to you, not to someone else they think is you, or a friend or family member they think may have knowledge of your whereabouts., The FDCPA restricts debt collectors from engaging in certain practices such as calling you at all hours of the day and night or contacting your employer.Specifically, federal law prohibits debt collectors from calling before 8 a.m. or after 9 p.m. unless you authorize them to do so.
For example, if you work fourth shift, you may have different hours that would be considered reasonable to you.Debt collectors also are forbidden to use abusive or obscene language, to harass you with repeated phone calls, or to threaten to sue you, garnish wages, or seize your property unless these are actions they actually intend to take.If a debt collector is harassing or abusing you, simply put down the phone and walk away.
You don't have to deal with that kind of treatment.The FDCPA also prohibits debt collectors from lying or making misleading statements.
For example, a debt collector can't claim to be a law enforcement agency or suggest that he is connected to the government, or lie about the amount of money you owe or will owe., If you want the debt collector to stop contacting you at all, you can ask them.
Under the FDCPA, they have to stop contacting you if you make the request – but it has to be in writing.If you really want them to stop contacting you, send them a letter using certified mail.
However, keep in mind that no matter how annoying they may be, asking them to stop contacting you entirely might not be in your best interest if you know you owe the money and want to negotiate a settlement.
About the Author
George Jenkins
Committed to making hobbies accessible and understandable for everyone.
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