If you owe money to a creditor debt collectors are permitted to report your debt to credit bureaus, file lawsuits against you, and should be taken extremely seriously. The best way to protect yourself and your financial situation is a methodical approach. First, know why you are being contacted. Know where the debt is from and exactly how much it costs.
Find out the name of the person calling, the agency, the creditor, and the agency’s address and fax number. Under the FDCPA, you have the right to tell a collector over the phone that you want all future contact to be in writing. Follow up all requests with a written request.
Keep in mind if you tell the collector not to contact you at all it the agency is entitled to contact you once more to inform you how it plans to proceed. Another request that can be made is that you are the only person that can be contacted. It might be a good idea to keep a file including dates and details of phone conversations and when you mail out or receive letters.
If you do send any correspondence to the collections agency do this by Certified Mail, Return Receipt Requested. This will make sure that the letter reached the collector, giving you a signed receipt as proof. If you negotiate a re-payment plan over the phone, request the terms of the plan in writing. In addition, any promise to remove or adjust credit history should without a doubt be documented.
Be sure that you pay the correct party; payments are usually made to the debt collection agency, not the creditor, unless you are otherwise instructed to do so. Carefully look over the amount you are being asked to pay. Get an assessment of any interest, fees or charges that have been added.
If you feel that your collector is being abusive, be certain to complain to the agency and keep this complaint on file. But most importantly, don’t ever ignore a bill collector even if you think that the debt isn’t yours; they will continue to contact you and it may mean more trouble and time in the long run.
Mallory Megan works for a debt collection company. Also, she writes articles on business, finance, the credit industry, and collection agencies. Get a totally unique version of this article from our article submission service
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