How to deal with Debt Collectors?

Most debt collectors have bad reputations. You need to learn how to deal with debt collectors to prevent them from taking advantage of your situation. Many debt collectors abuse their power and violate consumers debt collection rights while trying to collect debts. Knowing how to deal with debt collectors will allow you to stop them from violating your debt collection rights as well as allow you to sue the debt collectors if the break the laws such as those set forth by the Federal Fair Debt Collection Practices Act.

How to deal with debt collectors 101

When dealing with debt collectors, the first thing to remember is that you do have plenty of debt collection rights behind you. The federal government as well as your state help you make it difficult for the debt collectors to collect debts. However, whether the debt collectors obey the laws is a different matter and many debt collectors actually flat out break the laws. So, don't be surprise if you find some scrupulous debt collectors. If possible, try to avoid debt collectors. It is often easier to deal with the creditors directly. Usually creditors try to make it easy for you to pay off the debts, whereas the debt collectors can make it much harder for you to pay off the debts.

Debtor: Let me pay off my debt

Debt Collector: No no no - I'd rather report you to credit bureaus or bring on a lawsuit!

How to deal with debt collectors when debt collectors contact you

If you cannot avoid debt collectors and are now contacted by them, don't panic. If you are contacted by a debt collector, you can instruct them not to call you again. The debt collector must abide by your request under the Federal Fair Debt Collection Practices Act. After this request, the debt collector can only notify you by mail of the status of your account. The only exception to this is if the debt collector is giving you notice of their plans to:

• sue you, or
• stop all collection attempts

Bear in mind that many debt collectors abuse their power and could even break the law here. For example, once your account is with a debt collector, they could make it hard for you to pay off the debt since their systems are more tailored towards reporting your details to the credit bureaus or forwarding your information to an attorney for a lawsuit. Knowing how to deal with debt collectors will take some power away from their hands and put it into yours.

How to deal with debt collectors when speaking to them?

When speaking to a debt collector, get the following information:

• the name of the debt collector
• the name of the debt collection agency that the debt collector represents
• the business address of the debt collection agency
• the phone number of the debt collection agency

What to do if you feel that your debt collection rights are violated? Who do I contact to report or complain about debt collectors?

If you feel that your debt collection rights as given by the Federal Fair Debt Collection Practices Act are violated, do the followings:

• write to the debt collection agency and complain
• contact your state attorney general about the problem
• complain to the Federal Trade Commission

Knowing how to deal with debt collectors will help you maintain your credit rights and debt collection rights. Take some time to be familiar with how debt collection works and how to deal with debt collectors to make your situation better.