Dealing With Collection Agencies
No one likes to get a call from a collection agency. It’s their job to get you to pay back money you owe to a creditor at a time when you may not have the money to do so. But ignoring calls from a collection agency is never in your best interests. They have a legal right to collect the debt on behalf of their clients and not complying can be used against you in any future legal proceeding.
However, you do have rights when it comes to dealing with debt collectors. Under the federal Fair Debt Collection Practices Act (FDCPA), collection agencies cannot legally do the following:
• Call you at unreasonable times (before 8 am or after 9 pm)
• Pretend to be someone other than a debt collector
• Use abusive language or threaten you with legal action
• Add on additional charges to the debt other than interest stated in the original contract
• Call your workplace if your employer forbids it
• Discuss your debt with third parties who are not directly connected as co-debtors
If any of these practices are happening, you can demand in writing that the collector stop contacting you except to let you know that collection efforts have ceased or that the case is going to trial. Remember, however, that not hearing from a collection agency doesn’t mean that you don’t still owe the debt. You can also file a complaint with the Federal Trade Commission.
Dealing with and co-operating with collection agencies is in most debtors best interests. In most cases, you will be able to work out a repayment plan that works for both of you without having to file for bankruptcy. When dealing with collection agencies, keep in mind that this is their job. They are not out to get you personally. The more professional you are on the telephone with them, the more likely it is that you will be able to reach a mutually satisfactory resolution.
Working out an arrangement with a collection agency not only stops them from calling repeatedly but also puts you back on the path to financial security. Once you know you have a plan in place for paying back debt, you can focus on making it happen.
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Tags: collection agency, personal finance, recession
This entry was posted on Friday, April 3, 2009 at 6:35 am and is filed under Financial Education, Loans, Misc. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
One Response to “Dealing With Collection Agencies”
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Freedom From Creditors Says:
Just send the debt collection company that says, “please limit all communication to writing”. This way you will not jeopardize your position or allow the debt collector to verbally contract you to things that you don’t want to do or to money you do not owe. All debt collectors should validate that the debts are owed before a debtor is required to pay. All those things they must validate should be in writing anyway so just write them requesting validation and that they do all correspondence through mail.
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