Being in debt is bad enough a situation. On top of this if your account goes to debt collection agencies then your peace of mind is gone for a toss. Dealing with collection agencies can be a daunting job. But however, don’t ignore the calls and letters of the debt collectors if you don’t want to make matters worse. Here are some tips that may help you to deal with collection agencies.
1. Avoid dealing with debt collectors – Debt collectors can be ruthless in their attempt to collect debts from you. The best form of escape would be to avoid such circumstances for which your account can go for collection. Try negotiating with the original creditors and reach a reasonable payment plan before your account is sold to a third party debt collector.
2. Know about your rights – You can get to know about your rights from the U.S. Federal Trade Commission (FTC) which has a number of publications designed to let consumers know about their individual rights under the Fair Debt Collection Practices Act. If the debt collectors are harassing you in any way by making abusive phone calls and threatening you in ways that are not legal, you can report them to the FTC and to the office of your state attorney general.
3. Respond to attempts made to reach you – You should never ignore letters or phone calls made by your creditors or the debt collectors to reach you. You also should not disregard court notices informing you about debt lawsuits. In accordance with the law you can send letters asking for the verification of the debt, within 30 days of being contacted by a debt collector. If the debt isn’t yours, immediately oppose it otherwise the debt collectors can place negative information on your credit report that stays for a period of 7 years. This can decrease your credit score and affect your ability to take out a mortgage or any other secured or unsecured loans at low interest rate.
4. Get a consumer lawyer – If a lawsuit is filed against you, then you should immediately find a lawyer who specializes in consumer law to represent you in court. You may have your wages garnished if you lose a court judgment. There may be some suits that the debt collectors file with little or no proofs of the original debt. In such cases very often the creditor wins, if the information is too scanty.
5. Keep written records – You should try keeping as many documents as possible for a time period that is still not agreed upon. According to some experts, you should keep them as long as you would keep your tax documents, while according to some other experts, you should keep documents for as long as the statute of limitations for the state where you made the original purchase or your home state, whichever is longer
The above tips can help you is dealing with debt collection agencies in a better manner.