When a collection agency starts to pursue, they won’t give up the chase. Constant calls harassing and hassling you can put you off your guard. It’s a big stress that weighs on you as much mentally as financially.
With an understanding of how to deal with a debt collection agency, you can keep your peace of mind and better deal with the collection agency.
What Can A Collection Agency Actually Do?
Collection agencies are notoriously aggressive. Their job relies on them collecting. As a result, many collectors are not above lying or threatening. So it’s worth knowing what they can actually do.
- Collectors often threaten debtors with jail time. Despite what they may claim or what crimes they may accuse you of, a collection agency cannot send you to jail. As well, they cannot take your property without going through the court system and they can’t threaten to take you to court unless they really intend to.
- They also cannot harass you at certain times. For one, they are not to call before 8 am or after 8 pm. Nor can they contact you at work if you ask them not to.
- A collection agency is not your original creditor. So no matter what claims they make, they still have to follow the FDCPA regulations.
- A debt collector is unable to take money out of your bank, garnish wages, or take your property. The only way they can force you to pay is by taking you to court. The court can then force you to pay or garnish wages so long as the judgement occurs before the statute of limitations on your debt.
- Often, collection agencies will threaten to report your debts to credit bureaus before taking you to court. This is something they are able to do, and it can seriously affect your credit score.
Tips For Dealing With A Debt Collection Agency
To deal with a debt collection agency you need to stay calm, verify the facts, and make a payment plan. We recommend the following tips:
Demand Verification
There are a lot of scams out there. To protect yourself it’s important to verify any collectors and debts. When you are contacted by a collection agency get their identification and inform them that you will not discuss further until you receive written proof of the debt.
Collectors are required by law to provide their identification. If you tell them this and they still do not provide identification they are likely a scam. They also need to provide you with written documentation if you request it. Do not talk to them until you receive verification.
Do Not Give More Information Than You Have To
Many collectors will try to manipulate you. If you respond emotionally or give them personal information they will attempt to use it against you.
Sometimes people will try and inform them of the situation that resulted in their debt (such as a medical issue). Instead of garnering sympathy, collectors will use this information to twist your arm or guilt you.
Validate Debt
Once you receive written documentation request validation of the debt. This validation is in writing and shows that the collector was assigned the debt by the original creditor, and has a copy of a statement from the original creditor that verifies the debt.
Validation protects you from having collection agencies try to illegally inflate prices or collect on a debt they don’t have the right to. Act fast as you only have 30 days to dispute the charges and request validation.
Once you request debt validation the collector cannot contact you until they produce validation.
Check The Statute Of Limitations
There is a statute of limitations that prevents collectors from pursuing a debt if they wait too long to act. In most states, the limit is four to six years, but check to see what your state’s rule is on this.
Make sure to check this before paying anything. In some states, voluntarily making a payment can revive the date, extending the statute of limitations.
Resolving Debt Faster
Once you verify the collection agency and receive validation of the debt you need to a plan to pay it off. Paying off the debt faster helps you repair your credit and eases the stress and financial strain.
The best option for resolving debt faster is to talk with a debt counsellor. Debt counselling helps you build a plan that allows you to set up payments that are manageable and get you out of debt sooner. Talk to a debt counsellor today and get that monkey off your back.