The Secret To Dealing With Debt Collectors and Debt Collection Letters

 Are you getting harassing debt collection letters or phone calls? Make sure you know your rights before you proceed any further. 

If you find yourself receiving debt collection letters or calls, don’t spend too much energy getting stressed out. It’s an unfortunate reflection on consumers today that debt collection letters and calls are becoming an ever more common occurrence.  If you’re among the many Americans who have to deal with this unpleasant experience, you’re not alone.  One of the most important things to know is there are ways to protect yourself and techniques to handle debt collectors, so that you can get yourself out of debt and back on track financially. 

First of all, you should know that as a consumer, you have rights.  The Fair Debt Collection Practices Act has certain guidelines that every debt collector must follow.  This helps protect your rights as a consumer and minimizes the hassle you must go through.  For example, a debt collector cannot call before eight in the morning or after nine at night.  A debt collector cannot threaten to garnish your wages unless it’s legal to do so in your state.  A debt collector cannot harass you with endless debt collection letters and phone calls, if you tell them they have to stop.  To read the full text of this Law, go to: http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#801 

Because of this act, you, the consumer, have several options. You can refuse to take the call.  You can allow your answering machine to screen your calls for you, or you can block certain calls using caller ID. 

If you do talk to the collector, you can insist that they stop calling you.  They must do so if you tell them not to.  You should be aware that they can take other legal action against you, including taking you to court to collect the debt. 

Now, this is not to say that if the debt is yours, you should not pay it.  As a responsible consumer, you have an obligation to pay any debts you honestly owe. You may get into a situation where you cannot pay them for a while because of financial difficulty, and this is understandable.  When you begin to dig yourself out, unsecured debt, such as credit cards, should be the last you pay while you’re getting back on your feet.  However, simply telling a creditor that you intend to honor your debt and pay it back helps.  Oftentimes, they’ll work with you and even help you reduce your interest rate and other fees.  Simply put, they just want their money, and they know it’s in their best interest to make it as easy as possible for you to pay it back. 

Keep a file of any debt collection letters you receive and a diary of any calls you make or accept. Make note of any terms you’ve agreed to.  Also, know what day and time you insisted collectors stop calling, you if you’ve done so.  If it’s legal to do so in your state, you can record the other caller; check your particular state’s laws to determine whether you can do this and what, if any, limitations exist, such as notifying the other caller that you are recording them.  Most will not make any statements that are illegal once they know they’re being recorded. 

Most debt collectors will settle for much less than they’re asking for.  They get paid a percentage of what they collect, so they’re going to ask for as much as they can.  However, they’ll accept less if you insist, since they know that they’ll still make money. 

Part of the agreement should involve the debt collector promising not to put any black marks on your credit report.  You should also insist that they report payments you’ve made quickly to the credit agencies and update the amount you owe, so that this clear evidence of your own positive behavior shows up quickly. 

Finally, get anything you agree to in writing.  Once you do agree to a plan in writing, keep your own word.  If you receive debt collection letters or phone calls, with a little patience and honest effort, your discussions with these creditors can go a long way toward making this very unpleasant situation have a positive ending.