5 Tips on How to Deal with Debt Collectors
July 9, 2009 by MOYMRyan
Filed under Debt Management
The easiest way to avoid debt collectors is to be totally debt-free. But what is the point of creating an article about dealing with debt collectors if there is no debt to talk about in the first place?
You are probably familiar with harassing phone calls at work and at home. If you are financially in bad shape and trying hard to meet your financial obligations, then how stressful can your plight further get with a series of unwanted calls? Depressing, isn’t it? It’s good news therefore that federal laws and many states prohibit harassment of collection agencies. For example, the law includes a non-exhaustive list of harassing tactics, including prohibitions on threats of violence; obscene language; causing a telephone to ring repeatedly; and placing calls without meaningful disclosure of the caller’s identity. But how can you eliminate the stress altogether? Here are some tips.
Notify your creditors in advance
Before a creditor refers your debt case to a collection agency, anticipate the possibility by informing your creditor of your current situation. In most cases, creditors may give some allowances to those who displayed some sense of responsibility over their situations. However, consumers must not over-promise in the negotiations.
Send cease and desist letters
If a creditor or a collection agency is causing your phone to repeatedly ring off the hook, consider sending a cease and desist letter as federal law requires collection agencies to stop collection activities once they receive a written request to stop. Just make sure to keep your own copy of the letter and use certified mail so you have proof they received it. If harassment calls persist, then your creditor is in clear violation of Fair Debt Collection Practices Act, which is immediately reportable to the Federal Trade Commission (FTC). The next best step would be to send your lawyer’s letter to these creditors.
End the harassment calls
Keep yourself in control of the abusive phone calls from the debt collectors. It is stressful enough to be hounded by them, more so if you find that you are constantly at their mercy. Don’t be afraid to end the call but be professional all the time. Make it clear to them that you will hang up if their abusive behavior persists. Tell them that unless they conduct themselves in a professional manner, you will not speak to them.
There may also be cases that an abusive debt collector is not legitimate. If you suspect that this is the case, ask them about their license. If your doubts are confirmed, immediately notify the regulator of your state.
Report complaints on billing errors, etc.
Consumers should take into account whether they have defenses to raise that would eliminate all or part of their debt. It is your right as a consumer to dispute any billing amount that you think contains an error – a right you must have been informed of by your creditor at the onset of your business relationship or within 5 days after your first communication. If the consumer then disputes the debt in writing within the next 30 days, an investigation ensues whereby the collection agency must stop any collection effort.
Make partial payments
Probably the reason you are being hounded by persistent debt collectors is because you are failing to make necessary and on-time payments. Therefore, pay whatever you can. After settling obligations on rent/mortgage, utilities, car, food, insurance and tuition fees, make a conscious effort to reduce your outstanding debts. Ideally, pay more towards higher-interest rates or higher amount debts, and less towards low-interest or low amount debts.
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