Ways to deal with Debt Collectors
Friday, February 12th, 2010 Subscribe To Our Feed
A Needless Annoyance
Getting into debt these days is not difficult. Even our frugal nature does not stop us from defaulting on loans. Sympathy for the position that they are in will not help people in getting out of the mess. Facing the debt collectors can be very stressful, apart from the stress they already have with the original debt. They are doing their job of collecting money owed from a debtor. Showing signs of sympathy may be too hard, as they appear tough. These people are humans too, and face the frustrations of people and in turn get frustrated. There must be ways to stay out of problems yet handle these interactions effectively?
Debt Collection is Big Business
Debt collection is a lucrative business. The original creditor sold them your debt, so now they are wanting to collect the money you owe. They will try anything they can, as long as it is legal, to make the collection. Making the debtor pay up is what will earn the collection agency their livelihood. They may make regular calls or threaten legal action to get what they want. They are bound by a set of government guidelines about how they can go about their collection efforts. Creditors and debtors both have laws protecting the interests of each.
Do Not Panic
Most debtors panic when they start receiving calls from a collection agency, which is what they should never do. If you have questions about who the creditor is, you can demand this in writing from the collection agency. Debtors have a right to dispute any amount of money quoted them. You can dispute the amount of money owed with a certified letter. Collectors find it is much easier to reach a debtor at work than at home. Any calls made between the hours of 9 PM and 8 AM is against the law. You must send out a certified letter, while retaining a proof of delivery, to stop further actions from them against you. They cannot call you about your debt, but it still must be paid.
Credit Counseling Service
One last option is to go to a credit counseling agency to settle your debts without going to court. Remember, it is only the courts that can force a garnishment on your wages, and if a debt collector threatens you with this, they are only bluffing. You should report harassment on a collector if they do this. There is no doubt you must still pay off your debt. Take time to slow down and look at options you can take before pressing the self destruct button.
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