Dealing With Debt Collectors

(If you are behind on your bills, there are many things that need to be done to correct your financial situation. )

Because not only are you most likely being hounded by debt collection agencies, but you are also severely affecting your credit score, which will have a grave impact on your life for seven years.

Dealing with debt collectors is not something that anyone wants to deal with. Most of the time, they will stop at nothing to get the money from you.

But there are ways to deal with collections and get your life back in order.

A November 22, 2006 article by Nance Kelly of about.com, “Debt Collection FAQ’s,” discusses the most common questions that consumers have about collections.

“Under the Fair Debt Collection Practices Act (FDCPA), a debt collector or collection agency is defined as any person or business which regularly collects debts which are owed, or which were originally owed, to another person. This means that any person or agency who is collecting a debt which has been referred to them, or which they have purchased, from the original creditor meet the definition of a debt collector or collection agency.”

If you are being called by a collection agency, regardless of the amount owed, you have a right to be treated fairly and respectfully.

Do not accept any person calling you being rude or using foul or obscene language; report these callers immediately.

Once you receive the first phone call from a debt collector, it is important to get as much information as possible.

“Ask for the name of the caller and the name of the collection agency; Ask for the address and fax number for sending correspondence to the collection agency; Ask for the name of the creditor and the amount the collector claims you owe.”

Next, you should start a file about the debt you owe (hopefully only one debt collector has contacted you, not several), and start to keep all correspondence with the agency in writing and stored somewhere safe.

At the first contact from a collection agency, start a debt collection file. Your file should include:

“Dates and times of phone conversations or messages the collector leaves on your voice mail. Include the name of the individual calling and a summary of the conversation or the message. Do not record phone calls unless you inform the person you are speaking with that the call is being recorded. Copies of correspondence you send or receive, including envelopes and certified mail receipts.”

Make sure you send all correspondence by certified mall with return receipt requested.

“If you request that you not be called again by the debt collector, follow up that request in writing - a debt collector isn't required to stop calling you just because you've asked nicely, the law states that such requests must be made in writing.”

Finally, make sure that you understand everything about the debt that you owe, and do not be bullied by the agencies. “Carefully review the amount you are being asked to pay by the debt collector, and ask for a breakdown of the original debt as well as any interest, fees or charges that are being added.”

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