- 1). Know how collectors work. Collection agencies enter your life when an outstanding bill goes unpaid for several months. They may work for the creditor. They may work on commission and receive a percentage of the money collected from creditors. They may purchase your debts from the original creditor at cents on the dollar. By the time a debt collector reaches out, your credit report probably already shows late payments or written-off debt.
Collectors may also call when they suspect identity theft. When someone else has used your identity to obtain a credit card, loan, or medical help, a collector may help resolve the negative situation. The debt collector must investigate the problem by law to clear your record. - 2). Stop collector harassment by knowing your rights. When a debt collector uses inappropriate methods, stop him immediately. The Fair Debt Collection Practices Act protects borrowers from harassing, abusive collectors. Start by identifying the name and address of the collection agency. Obtain telephone, fax and website information. Verify the name of the creditor and the account balance according to the agency. Demand prompt written follow-up of the information the collector provides on the phone. Declare that all future communications must be in writing, and that contact with employers, family and friends must cease. The collector knows how to make future contact if required. Do not accept anything but postal mail in a standard-size envelope from the collector.
- 3). Create a collector file. Note any calls from the collector after your declaration that he may not call. Date, time and duration of calls, including automated messages, should be noted. Obtain names of any individual collectors from the agency. Note the specific content of any abusive or harassing calls in your file. Copies of all letters and communications sent, and those received, should be kept including envelopes.
The collector should verify the debt in writing within five business days. Any negative communications should be the subject of a letter to the collector. Send certified letters with a return receipt. Make a note on the return receipt about the letter's content, e.g. "Demand to cease telephone communications, part 2." - 4). Communicate directly with the creditor and copy the collector when discussing payments. After discussing a proposed repayment schedule by phone, always follow up with a certified letter concerning your detailed proposal. Confirm the proper party to receive debt repayments.
- 5). Report the offending collector to state and federal agencies. Refer to your records about any phone contacts after your direction to the collector to communicate only by U.S. mail.
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