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 by the creditor and is within the statute of limitations of your state, then you should negotiate payments. Statute of limitations are commonly seven years from the first 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 agree on a settlement you must get in writing from them that in exchange for your payment they will not report any negative information to the bureaus regarding your debt. If this is not done you may no longer be getting harassing phone calls but you will have a whole new set of problems because of a low score.
Also if you just pay the debt it will be reported as a paid collection. This is still a very bad mark on your credit report and will not improve your score.
Again, you should get in writing that negative information is not going to be reported to your credit. Occasionally derogatory information has already been reported you should get them to agree to delete it from your report.
If you do not do this there is zero benefit from paying the collection. Additionally always pay with a paper check. FYI, you can actually use the memo line to repeat the contract regarding reporting to the bureaus, then when the check is cashed you will have a binding contract.
If you are being harassed by a collection agency you are not alone. Additionally they only can legally do so much. The Fair Debt Collections Practices Act says that a debt collector can not;
- Threaten legal action
- Constant harassing calls
- Call your employment (once asked not to)
- Claim to be anyone they are not
- Threaten to file 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 neighbors or family members and speak with them about your debt
- Only call between 8am and 9 pm
- Call you after 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 file a lawsuit against the agency and be awarded monetary damages. Make sure to keep all communications in writing in case they are in violation.
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 by the creditor and is within the statute of limitations of your state, then you should negotiate payments. Statute of limitations are commonly seven years from the first 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 agree on a settlement you must get in writing from them that in exchange for your payment they will not report any negative information to the bureaus regarding your debt. If this is not done you may no longer be getting harassing phone calls but you will have a whole new set of problems because of a low score.
Also if you just pay the debt it will be reported as a paid collection. This is still a very bad mark on your credit report and will not improve your score.
Again, you should get in writing that negative information is not going to be reported to your credit. Occasionally derogatory information has already been reported you should get them to agree to delete it from your report.
If you do not do this there is zero benefit from paying the collection. Additionally always pay with a paper check. FYI, you can actually use the memo line to repeat the contract regarding reporting to the bureaus, then when the check is cashed you will have a binding contract.
If you are being harassed by a collection agency you are not alone. Additionally they only can legally do so much. The Fair Debt Collections Practices Act says that a debt collector can not;
- Threaten legal action
- Constant harassing calls
- Call your employment (once asked not to)
- Claim to be anyone they are not
- Threaten to file 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 neighbors or family members and speak with them about your debt
- Only call between 8am and 9 pm
- Call you after 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 file a lawsuit against the agency and be awarded monetary damages. Make sure to keep all communications in writing in case they are in violation.
About the Author:
For a free credit consultation call 1-866-246-7311. If you want information on how to deal with Midland Credit Management or Palisades Collection two common debt collectors visit us.
posted by Debt Consolidation Loan at
8:55 AM
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