Debt collectors are looking to make you pay up. It is their job to get you to write that check, and they know that mean works better than nice. Also, many collectors take advantage of the consumers’ ignorance of the FDCPA law. Debt collection is a huge industry, totaling $15 billion dollars a year, and growing fast. Thousands of companies buy debts for pennies on the dollar, in the US today, and then try to recover what is owed. They contact the consumer and negotiate a pay back and are good at finding out where borrowers live and work, to contact them by phone, mail, and fax, and sometimes even telegrams.
Researching, learning and understanding your rights under the FDCPA should be the first step if you wish to stop illegal collector harassment and safeguard your peace of mind. Unless you are aware of the law and fully understand how to use it, you would be at the mercy of unethical credit card debt collectors who use underhanded and illegal tactics to intimidate you into paying expired or invalid debts that you just can't afford. You have several rights under the FDCPA. You can request that the collector does not contact you anymore, or only contact you by mail. Collectors cannot threaten you, under this law, or pretend to be a credit bureau. Neither can they tell you that you owe more than you actually do, or use obscenities, or claim that you are guilty of a crime.
You will be contacted by the collector via a letter and you should open and read this letter immediately. You have only 30 days to dispute any facts so if there are errors, you should notify the collector and the related creditors immediately. Keep notes about all your communications with collectors and retain copies of all correspondence. When your debt is sent to collections a new record appears on your credit report which will remain on your credit report for seven years from the last payment, late by 180 days, on the original account, regardless of whether you pay the debt or not. Carefully review the information posted by the collection agency on your credit report. It is common for collectors to report incorrect facts to speed up negotiations.
After verifying that the debt is accurate, consider your options. It is better, in most cases, to negotiate a deal, pay off the collector, and rebuild your credit. However, if there are other debts not in collections that need to paid, you should work on paying those first. After all, this collection record will stay on your credit report for seven years anyway. It doesn’t make sense to pay the collection debt, and let the others go into collection as well. When you do decide to pay the collection debt, contact the collector and try to negotiate an agreement. Credit card debt collectors buy your debt for pennies on the dollar, and so, they will often negotiate a reduced settlement. Some will offer to take the record off your credit report, but that is illegal. Make sure the collector sends you the terms of the settlement in writing, and refuse to pay until they do. You may need this letter if the debt resurfaces again later.
Being contacted by a collections agency can be scary. Take a step back, find out your rights, and pick your options, take control of the situation. Credit card debt collectors will do just about anything to get you to pay. Never ever give them your account number; they will bleed your account dry as soon as they have that information. Never agree to repayment terms without getting them to put it in writing. Don’t trust collectors or take them at their word. It is their job to play on your emotions of guilt and shame. Remember this, you owe them the money and it’s your responsibility to pay, but you do not have to allow yourself to be ill treated as you work towards getting yourself out of debt.
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