Dealing with debt collectors can be a frustrating and time-consuming experience. Collectors may harass a debtor at home and work until he asserts his rights. In the United States, the Fair Debt Collection Practices Act (FDCPA) provides a set of guidelines that third-party collectors must follow; other countries have similar laws. To ensure compliance with these guidelines, the debtor should gather information from the collector, ask that future correspondence take place in writing, insist that all future contact be with the debtor only and keep extensive records in case a complaint needs to be filed. Following these tips and paying the debt in a timely manner will benefit all parties involved.
Collection generally begins when payments have not been made in several months and the account has been given to a debt collection agency. It is important to get as much information as possible during the first call when dealing with debt collectors. Get contact information for the collection agency, including the address, telephone and fax numbers. Be sure to ask for the exact amount of money owed.
Collectors will sometimes try to call employers, friends, relatives and neighbors in an effort to harass a debtor. Request that all future communication be with the debtor only. Inform the collection agency that the debtor’s employer does not tolerate calls from collectors. Keep a record of every contact when dealing with debt collectors, and follow up every request with a letter.
Always make sure payments are being made to the correct party. The collection agency may have assumed responsibility for the debt, in which case money should no longer be sent to the original lender. Ask for a summary of all fees and interest that may be owed in addition to the original debt. Insist that this information be provided in writing.
Never ignore a collector, even if he is calling by mistake. The call could be the result of identity theft, which can adversely affect credit ratings and have legal ramifications. Ignoring a collector will not make him go away. A collector will continue to call residences and workplaces until he is able to make contact with the debtor.
Keep careful records of all correspondence and payments made when dealing with debt collectors. Don’t hesitate to file a complaint with the FDCPA if the collection agency violates any of the fair-play provisions. Debtors can also seek assistance from attorneys or credit counseling services.
