Collection Agency Harassment
Regrettably debt collectors are often unethical. This has resulted in the government passing legislation to protect you from unethical debt collection tactics.
If the debt they are contacting you about is legit then you should ask for validation of the debt. This must be done in writing.
Failure to do this and if you ask for validation over the phone, 99% of the time it will be completely ignored. Additionally send your letter certified mail so you have proof that they received it.
If your debt is validated and it is within the statute of limitations of your state then you can negotiate payments. Limitations are often seven years from the date of delinquency.
When negotiating payment you should never pay the whole balance. This is because your debt has been purchased from the creditor for a fraction of the balance. We suggest you start your offer at half of the balance.
Debt collectors will always accept a partial payment. This is because there only way to recoup the money they spent on your debt is; by accepting partial payment or selling the debt for a fraction of what they paid for it.
When you and the agency agree on a settlement payment you must get in writing from them that in exchange for your payment they will not report any negative information to the bureaus. If you fail to do this you will stop the phone call but you will have a whole new set of problems because of a damaged credit score.
If you just pay the debt it will be recorded as a paid collection. This is still a derogatory mark on your credit and will not improve your score.
I repeat you must get in writing that no negative information is going to be posted to your report regarding the debt. In a rare case that negative information has already been reported you must get them to agree to erase it from your report.
If you do not do this you will not benefit from paying the collection. Also always pay with a paper check and no other form. Just so you know you can actually use the memo line to repeat the agreed upon contract, when the check is cashed you will have a binding contract.
If you are being harassed by a debt collector you are not alone. They only can legally do so much. The Fair Debt Collections Practices Act says that a debt collector can not;
- Threaten legal action (arrest, jail)
- Constant harassing calls
- Call your employment (once asked not to)
- Claim to be anyone they are not
- Threaten a lawsuit (unless they are taking legal action)
- Threaten to garnish wages or seize property (each state is specific about what is legal, often a court order is needed)
- Call your family members or neighbors and speak with them about your debt
- Only call between 8am and 9 pm
- Call you if you have notified them that you will not accept calls regarding this debt.
Often these regulations are ignored. If you have been a victim you should report the agency to the FTC and the Attorney General. A majority of collection agencies have been fined because of violation of the FDCPA.
Additionally you can sue the agency and be awarded money damages. Make sure to keep all your communications in writing that way you can prove they are in violation. - 16931
If the debt they are contacting you about is legit then you should ask for validation of the debt. This must be done in writing.
Failure to do this and if you ask for validation over the phone, 99% of the time it will be completely ignored. Additionally send your letter certified mail so you have proof that they received it.
If your debt is validated and it is within the statute of limitations of your state then you can negotiate payments. Limitations are often seven years from the date of delinquency.
When negotiating payment you should never pay the whole balance. This is because your debt has been purchased from the creditor for a fraction of the balance. We suggest you start your offer at half of the balance.
Debt collectors will always accept a partial payment. This is because there only way to recoup the money they spent on your debt is; by accepting partial payment or selling the debt for a fraction of what they paid for it.
When you and the agency agree on a settlement payment you must get in writing from them that in exchange for your payment they will not report any negative information to the bureaus. If you fail to do this you will stop the phone call but you will have a whole new set of problems because of a damaged credit score.
If you just pay the debt it will be recorded as a paid collection. This is still a derogatory mark on your credit and will not improve your score.
I repeat you must get in writing that no negative information is going to be posted to your report regarding the debt. In a rare case that negative information has already been reported you must get them to agree to erase it from your report.
If you do not do this you will not benefit from paying the collection. Also always pay with a paper check and no other form. Just so you know you can actually use the memo line to repeat the agreed upon contract, when the check is cashed you will have a binding contract.
If you are being harassed by a debt collector you are not alone. They only can legally do so much. The Fair Debt Collections Practices Act says that a debt collector can not;
- Threaten legal action (arrest, jail)
- Constant harassing calls
- Call your employment (once asked not to)
- Claim to be anyone they are not
- Threaten a lawsuit (unless they are taking legal action)
- Threaten to garnish wages or seize property (each state is specific about what is legal, often a court order is needed)
- Call your family members or neighbors and speak with them about your debt
- Only call between 8am and 9 pm
- Call you if you have notified them that you will not accept calls regarding this debt.
Often these regulations are ignored. If you have been a victim you should report the agency to the FTC and the Attorney General. A majority of collection agencies have been fined because of violation of the FDCPA.
Additionally you can sue the agency and be awarded money damages. Make sure to keep all your communications in writing that way you can prove they are in violation. - 16931
About the Author:
For a free credit consultation call 1-866-246-7311. Additionally you can get free Credit Repair Letters used to dispute negative information or a free credit repair e-book by visiting us.
posted by Edgar at
00:13
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