When it comes to persistence, collection agencies are experts. If they have been assigned a debt to collect or bought a debt to collect it themselves, they will do everything they can to get you to pay up. It is no wonder that many consumers are scared of these companies. Dealing with collection agencies doesn’t have to be a thought to be feared though.

There are laws that govern collection agencies and what they can do or say. These include the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). Many states also have debt collection laws in place as well, some of which may offer more protection than federal law. While there are some agencies that ignore the law, many operate fairly.

When dealing with collection agencies, it is important to stay calm. If you get upset, you risk saying something you may regret. If a collector calls, start the call by setting ground rules. Let them know you are willing to talk to them provided they are polite and don’t threaten you. Ask for the name of the collector and collection agency, as well as their phone number and address. If your state requires licensure for agencies, you may want to ask for their license number.

It is also a good idea to record the call. Check your individual state laws as some states require you notify the person before recording. In many cases, the collector will advise you that the call is being recorded, which automatically gives consent for you to record as well. Less scrupulous collectors will tell you that you can’t record the call or refuse to talk to you if the call is recorded. This is because they don’t Brand Cialis want proof of their violations of the law.

Request validation, or proof, of the debt they are collecting. Legally, once you make your request, they must stop collection attempts until they provide it. Make sure your request is in the form of a letter, copied for your records, and mailed certified mail return receipt requested so you have proof the request was sent and received.

Despite what some collection agencies would have you believe, you can stop their phone calls. If their calls are to your workplace, notify the collector that you are not allowed to receive calls at work. Follow this up with a mailed notice.

Dealing with collection agencies calling your home is a similar process. Tell them you do not want them to call, making sure to send a written request as well so you have proof. In either case, if they continue to call after you have requested they not do so, they risk penalties under consumer credit laws.

If you decide to pay the collection agency, you may be able to negotiate a settlement that is less than the amount they are demanding. Be careful though. Have the collection agency send you something in writing verifying the settlement agreement you came to and closing the matter completely. Some collection agencies will agree to a settlement, take your money, and then turn around and try to collect more.

Once you are aware of the laws and know how to handle these companies, you will find that dealing with collection agencies isn’t such a scary concept after all. You can handle it and move on.

Author Bio: In my guide “Credit Secrets Revealed” I teach those in debt everything you need to know. Here you are armed with all the tools to improve your credit score and start taking advantage of the many benefits that come with it.

Category: Finance/Credit
Keywords: dealing with collection agencies,collection agencies,stop collection agency, how to deal with collection agencies