How To Deal With Debt Collectors

Obviously, the most ideal way to deal with debt collectors is to do all that you can to avoid getting into debt in the first place. Unfortunately, with the world economic stage in the situation that it’s in now, this is hardly an option for many people, and an increasing number of people are finding themselves further in debt than ever.

What’s most unfortunate about this, however, is that being in debt often leads people to make terrific mistakes that only compound the misery of their situations. Of course, being in debt is a scary situation, but if you know what to do when the collectors begin to call, then you can minimize the damage that they do, both to your credit score and to your mental health.

First, know the rules and regulations by which debt collectors must operate. Yes, you wouldn’t think so by seeing them in action, but debt collecting is actually a highly regulated practice and if your collector is breaking the rules in order to collect a debt from you, it may well qualify as harassment. It pays to know what a collector is and is not allowed to do.

For instance, many people claim that it’s illegal for a collector to call during dinner time. This, unfortunately, is not so. The government’s Fair Debt Collection Practices Act does, however, limit the hours during which a debt collector to the span that runs between 8 AM and 9 PM. Calls outside this time should be reported to the Federal Trade Commission as urgently as possible.

In addition, the above-mentioned Act limits the people who can be contacted regarding your debt, and where you can be contacted. If you tell a debt collector that your employer does not allow you to receive calls regarding debt, then it becomes illegal for a collector to call you at work.

If they continue to violate this regulation, then their behavior is in clear defiance of rules. Furthermore, while a debt collector is allowed to contact your friends and relatives to pry them for information on how to get to you, they cannot, under any circumstances, inform them about the debt that you have. If they were to do this, it should be reported and would very likely qualify as a breach of confidence that might entitle you to damages.

Many people feel threatened and harassed whenever a debt collector of any type calls, but you should pay careful attention to the words and tones they use to determine if they really ARE behaving in a harassing fashion. It is simply not acceptable for a debt collector to use obscene language or to levy threats against you for not paying your debt. Any such behavior is in violated of federal Acts.

Apart from the regulations binding collectors, there are certain tactics that you can use to make dealing with them easier for yourself. For instance, if you ask a collector to “verify” your debt, then they are required by law to send you written confirmation of the debt you owe within the next 30 days. Until they do so, their collection attempts must stop. Also, if you’re going to be making payments to a collector, ask for specific terms in writing, including the stipulation that the infraction will be removed from your credit report once you are paid in full.

The bottom line is – don’t just rush into dealing with debt collectors. While they can be intimidating, recognize the rules that they are obliged to play by, and learn to use them to your advantage.

Related Articles

• US States Implement Stricter Rules On Debt Collection
Consumers facing increasing delinquencies are also facing more aggressive debt collection procedures. Anyone who has had to deal with professional debt collectors knows they can be ruthless at times. Because of
• US States Implement Stricter Rules On Debt Collection
Consumers facing increasing delinquencies are also facing more aggressive debt collection procedures. Anyone who has had to deal with professional debt collectors knows they can be ruthless at times. Because
• Businesses Slide Into Recession, But Debt Collection Booms
There are a growing number of US debt collection agencies jumping on the bandwagon of growing insolvency problems in America. This ever growing army of debt collectors is chasing an
• Hanging Up On Debt Collectors
If you’re in any kind of significant debt at all, you’ve no doubt had this experience one too many times already. You’re sitting down to eat dinner with your family,
• On The Lookout For Fake Debt Collectors
The BBB or the Better Business Bureau has issued serious warning to consumers regarding a new scam involving phony debt collectors that possess a significant amount of private information about