How to Deal with Collection Agencies

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Collection Agencies

Tuesday 24, 2017

First off, it is well understood that no one ever wants to be facing a situation where they are communicating with a collection agency. At this point, one may feel as though they are beyond hope, and that this is the end of their financial standing. This is because collection agencies will call you several times in a day, as well as leave messages where they are demanding for their payment to be completed, for the bills that they are following up on.However, it is possible to deal with them in an excellent way so that the effect on your credit report is minimal. Here are some tips that will help you:

Ensure that It is Written

Debt collection agencies will normally reach out to you on the phone to let you know of an outstanding bill that needs to be repaid. When you get this phone call, you should not panic. Instead, ensure that they send you the information that you need in writing. In addition, this should be done within a set period of time, typically five days within the phone call being received. In this written notice, there should be information on the amount of money that you owe, the name of the creditor that is seeking the funds, and the steps that should be followed in the event that you want to dispute the debt. Rather than engaging for a long conversation with the person communicating from the agency, it is better to ask them to send you all the information in writing.

Put Your Dispute in Writing

It is good for you to ask for the debt collection agency to get in touch with you in writing, and even better when you respond in writing. Once you have received their information, then you will have a total of thirty days to write back with the notice that states you believe that you do not owe any money. This should stop the debt collector from getting in touch with you until an investigation has been carried out. It is essential that you retain a copy of the letter for reference letter. When sending the letter, you need to use certified mail for tracking purposes. This will prevent the debt collection agency from denying that the letter has been arrived.

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Don’t Talk Too Much

When dealing with the collection agency, spend more time listening to what they have to say that defending yourself or speaking. Think about your interaction as you would an interview, where you ask some questions and give them a chance to answer. Do not allow yourself to get phased by the conversation, and instead, remain as calm and focused as possible. If you do need to give any responses, make sure that they are very short and factual so that you do not sound repetitive, or give information that you did not intend to share.

Keep the Debt Collector Controlled

Whether or not you owe a massive amount of money, the debt collector needs to abide by a certain amount of rules when they are communicating with you. You need to note what they say so that you have a record of things to see whether they said or did the right things or not. For example, when speaking with you the debt collection should never use any bad language that may be seen as obscene or offensive. In addition, once you have spoken to the collection agency at least once that day, they should not call your repeatedly to harass you. Furthermore, they need to ask for your consent if they will be calling you before 8.00 am or after 9.00 pm.

They also need to be fully honest when they are speaking to you, meaning that they should never misrepresent the amount of your debt. They should also not make any false claims about who they are and who they represent, for example, saying that they are an attorney or that they are calling from the credit bureau.

You should also not give in to any threats that are given to you on the phone, such as them threatening to sue you when in fact they do not want to take any legal action. They could also threaten to seize property to ensure that you are fearful, although they have no intention of doing that. This could give you a case for complaint.

Stay on Track

The most important part of dealing with collection agencies is keeping an excellent record of all your communication. This means that when you receive a phone call, you need to note the date and time of the call. In fact, you need to ensure that you have a record of every conversation or interaction that you have had with the collection agencies. This includes creating a file and keeping copies of all the correspondence that you have from the collector. Your record should be incredibly comprehensive, also including the time and date, name of the person calling on behalf of the collection agency, the amount that they believe you owe, and the main points of the conversation being highlighted. When you have a good paper trail, you will find that the debt collector cannot get away with giving you any intimidating misinformation.

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Quick Solutions

The ultimate way to deal with a collection agency is to offer a quick solution, especially if you are in the wrong. This will help prevent things from blowing out of proportion. The first thing that you can do is discover different ways that you are able to pay off the debt. If you need to, you should find a debt relief option one of which could be credit counseling. This will help you better manage your expenses and how you spend. If it has been more than five years and you have been struggling to bring your debt under control, yet found that you cannot pay them off, then you need to consider filing for bankruptcy.