How To Respond To Debt Collectors

How  It  Starts

We know the story all too well, you fall behind in a bill, you don’t pay it. The creditor realizes they are never going to get their money so they refer it to their “in house” collection department, or a debt buyer, or a collection agency buys the debt.

Now, they begin calling your home, your job, etc. They show up on your credit report in the form of a collections which they report monthly to the Bureaus and this negative item drops your scores drastically.

There  Are  Laws  That  Protect  Us    

There are laws that regulate how debt collectors treat you and laws they must abide by. They are called the Federal Debt Collection Practices Act (FDCPA) The Federal Trade Commission enforces these laws, and prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.

They dont get to call or harass you all day and all night, or call your employer especially if you have already warned them that doing so can cause you problems at your employment. They should not contact 3rd parties in regards to your debt. They should not threaten to sue you if that is not their intention. They cannot threaten to arrest you for the debt, or use abusive language when contacting you. These are just a few of many.

So you ask, what should I do if a debt collector contacts me about a debt or I notice a debt collector reporting a account on my credit report?

First, send a Cease and Desist Letter if they are excessively calling you.This letter will indicate that they should only correspond with you through writing.

Second, always correspond with a debt collector through writing. If they call you, tell them to contact you through writing at the address they have on file and hang up. If you receive a notice from a debt collector of a alleged debt, send them what is known as a “debt validation” letter.

This is another letter that request the debt collector validate all aspects of the debt.  In the letter, you will ask them to show you “proof” of monies owed, and some type of contractual agreement between you and the debt collector.

Third, Check to see if the debt collector is licensed to collect in that state. And most importantly, make sure the Statue of Limitations (Sol) of the debt hasn’t expired. Debt collectors are notorious for coming after consumers for expired debt.

Last, Get everything in writing. The debt collector has 30 days to respond to your request. If they respond and are able to prove this is your debt, then you can begin to negotiate some type of settlement.

Summary

The world of debt collection is a dirty business. Its important you equip yourself with the knowledge to know how to deal with them so you do not get intimidated.

Credit Corrector Solutions assist clients with dealing with debt collectors all the time. We negotiate on behalf of our clients and dispute collections accounts on credit reports frequently, having them removed. We help repair credit and offer comprehensive credit plans.Contact us today at 877-335-8865 or fill out our contact form on the website.

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