6 Tips to Help You Deal with Debt Collectors

When it comes to managing finances, you may be a very conscientious person. However, once in a while if you forget to pay a bill, it may go into collections. For example, if a bill is lost in the mail or is misplaced, it is likely that you’ll end up missing the payment. In such cases, the creditor may send your account to collections despite the fact that you are not a willful defaulter, and that you have enough funds to make the payment. 

When this kind of an event takes place, one of the effects is that your credit score takes a hit. Moreover, the debt collection agency starts contacting you on a regular basis in an attempt to recover the money. Read on to learn what you can do to handle a situation like this in the best possible manner.

1. According to the Fair Debt Collection Practices Act, a collector must indicate to you in writing the amount owed by you, the details of your creditor, and what steps you can take if you believe you do not owe the money. If you haven’t received this information within five days of the collection agency contacting you, ensure that you ask for it.
   
   
2. Sometimes debt collectors pursue bogus debts or try to collect ones that have already been paid. Thus if you are sure that you don’t owe the money, you can dispute the debt by sending a certified letter to the agency within 30 days of receiving their notice. Nevertheless, be aware that if the collector has proof of the debt, such as a copy of the bill, it can continue its collection activities.
   
   
3. Maintain a file with copies of all correspondence exchanged with the collector, as well as notes that summarize everything discussed with the agency over the phone. Retain any voicemails that may be sent by the collector. You could find this evidence to be indispensable in case the agency breaks the law.
   
   
4. By law, debt collectors have certain restrictions, so it can be beneficial for you to know your rights. For example, an agency can only call you before 9 p.m. and after 8 a.m., and they can’t use abusive or profane language in their communications. Moreover, they aren’t allowed to misrepresent their identity or facts related to the debt, or even threaten you with legal action.
   
   
5. Perhaps the most important tip when dealing with a debt collector is that you should hold your ground and give away as little information as possible. Most agencies hope to gauge important details, such as how much you can afford to pay, so during a conversation it is best to stick to the facts and speak less.
   
   
6. Finally, if you are confronted by a debt collector, don’t neglect to negotiate! Many agencies are willing to settle for whatever they can get, so if you make an attempt, you could land yourself a good bargain. Start by offering to pay less than the amount that you are comfortable paying. The agency will undoubtedly make a higher counteroffer. By this process, you can hope to settle the debt for a much smaller amount than what you owe. Nevertheless, make sure you get the agreement in writing before paying the agency.

Sometimes you can also get a deal whereby you agree to pay the debt in full if the agency agrees to remove the collection account from your credit report by directly contacting the bureaus. This sort of a settlement could improve your credit score significantly.

Individuals who borrow massive sums of money at high interest rates often find themselves in a fix when they are unable to repay their loans and their account is sent to debt collectors. Luckily, if you are someone who needs significant funding, our team at Fund&Grow has a much safer solution for you! For a flat or sliding fee, our organization can help you obtain $50,000 - $250,000 of unsecured credit at 0% interest. You can keep this amount for 6, 12 or 18 months without worrying about steep finance charges or even any sort of paperwork – as we take care of all that for you. Give us a call at (800) 996-0270, and let’s discuss your options.