When A Debt Collector Is On The Phone, A Methodical Approach Is Best
Friday, 16 July 2010 08:17 | 
Author: Mallory Megan |
If a collections agent is on the line, your immediate reaction might be to ignore the phone calls. Seems easier to do things that way right? But if you owe debt to a creditor, collection agencies are allowed to contact credit bureaus and report the debt, file lawsuits against you, and should be taken very seriously. Rather than ignore the phone calls, take them head on with a methodical approach. Your first step is to determine why you are being called. Find out where the debt comes from and exactly how much you owe.
If a collections agent is on the line, your immediate reaction might be to ignore the phone calls. Seems easier to do things that way right? But if you owe debt to a creditor, collection agencies are allowed to contact credit bureaus and report the debt, file lawsuits against you, and should be taken very seriously. Rather than ignore the phone calls, take them head on with a methodical approach. Your first step is to determine why you are being called. Find out where the debt comes from and exactly how much you owe.
While you have your bill collector on the phone, ask for their name, the name of the debt collection company, the name of the creditor, the agency's street address, and their fax number. Bear in mind that you have the authority to inform a debt collector that you want all future contact to be in writing over the phone, but follow up all requests you make with a written request.
One crucial thing to bear in mind is that if you request that the collection agent doesn't contact you at all, the debt collection agency has the authority to call you one more time to inform you how it plans to take further action. If you have issues with personal privacy, you can also ask that you be the only person who can be contacted. A good idea is to start a file with details and dates of phone conversations and records of when you mail out letters.
If you do end up mailing the collections agency do this by Certified Mail, Return Receipt Requested. This way you will know that the letter got to the collection agent because you will get a signed receipt as proof. If you are able to negotiate a re-payment plan over the phone, request the terms of the plan in writing. Any offer that a debt collector makes to remove or adjust credit history should also be documented.
Make sure that you are paying the right party. Payments are generally made to the debt collection agency, not the creditor, unless you are otherwise told to do so. Look over the amount that they are asking you to pay carefully, and get an assessment of any interest, fees or charges that have been tacked on. By taking this methodical approach, you will feel more empowered and ready to tackle your financial issues.
If a collections agent is on the line, your immediate reaction might be to ignore the phone calls. Seems easier to do things that way right? But if you owe debt to a creditor, collection agencies are allowed to contact credit bureaus and report the debt, file lawsuits against you, and should be taken very seriously. Rather than ignore the phone calls, take them head on with a methodical approach. Your first step is to determine why you are being called. Find out where the debt comes from and exactly how much you owe.
While you have your bill collector on the phone, ask for their name, the name of the debt collection company, the name of the creditor, the agency's street address, and their fax number. Bear in mind that you have the authority to inform a debt collector that you want all future contact to be in writing over the phone, but follow up all requests you make with a written request.
One crucial thing to bear in mind is that if you request that the collection agent doesn't contact you at all, the debt collection agency has the authority to call you one more time to inform you how it plans to take further action. If you have issues with personal privacy, you can also ask that you be the only person who can be contacted. A good idea is to start a file with details and dates of phone conversations and records of when you mail out letters.
If you do end up mailing the collections agency do this by Certified Mail, Return Receipt Requested. This way you will know that the letter got to the collection agent because you will get a signed receipt as proof. If you are able to negotiate a re-payment plan over the phone, request the terms of the plan in writing. Any offer that a debt collector makes to remove or adjust credit history should also be documented.
Make sure that you are paying the right party. Payments are generally made to the debt collection agency, not the creditor, unless you are otherwise told to do so. Look over the amount that they are asking you to pay carefully, and get an assessment of any interest, fees or charges that have been tacked on. By taking this methodical approach, you will feel more empowered and ready to tackle your financial issues.
About the Author:
Mallory Megan works for Rapid Recovery Solution and writes articles on medical collection agencies.
