How To Deal With Debt Collection Agencies

Debt collection agencies, 7 proven ways to fight back against debt collectors. Learn your debt collection rights and stop unfair harassment.

Dealing with debt collection agencies is never fun - in fact, it's something that most consumers do not want to deal with. It's frustrating to get those calls about unpaid debts, and fighting collectors can become a big pain quickly. Of course, it's important to avoid just ignoring your debts.

There are ways that you can deal with these companies and work to stop a collector right in their tracks. You need to know your rights, validate your debts, check out the statute of limitation on debt, and try negotiating with creditors to deal with this problem once and for all.

Here is a closer look at important tips and ideas that can help you deal with debt collection agencies the right way.

7 Best Ways To Fight Back Against Debt Collection Agencies

Know Your Rights

The first thing you must do if you want to know how to deal with debt collection agencies is to know your rights. You must know what your rights are according to the Fair Debt Collection Practices Act. When you're fighting collectors, they are not allowed to threaten you, use abusive language, or harass you with calls all the time.

Understand that these companies have laws that they must follow, and you need to know about these laws before you start working with these companies. And check out the Fair Debt Collection Practices Act yourself or check with the U.S. Federal Trade Commission, which provides important publications that can help you learn more about your rights as a consumer.

Stop Those Calls and Get Everything in Writing

The next thing that you need to do when dealing with debt collection agencies is to stop those calls and get everything in writing. It is your right to stop these calls but you have to go beyond just requesting it on the phone.

It is important that you send the collector a cease and desist letter letting them know that they should not contact you.

This must be sent to each collector. Just one letter won't be enough if several collection agencies are trying to get a hold of you. If you stop the calls, they'll have to contact you by mail. This allows you to get everything in writing and will also give you the address and other information on the collection company.

Ensure It's Your Account

You need to ensure it's your account before you even start fighting collectors. Some debt collection agencies may be trying to collect on accounts that are not valid, which is why you need to require a validation of debts letter from the company.

It is your right to ask for a debt validation letter, and if they cannot provide you with one, you are not responsible for this account by law.

You should never take it for granted that this is your bill. Documentation from the initial creditor must be provided for these agencies to collect. Just remember, there is only a certain amount of time you have available to use this right so make sure you ask for validation as soon as you hear from a collector in the first place.

Use a Consumer Lawyer to Help if Arbitration Occurs

Sometimes arbitration can occur and if this happens, you need to use a consumer lawyer. There is hope for arbitration elimination. However, you can't deal with this on your own. If there is a lawsuit, go to a good consumer lawyer that can provide you with good representation.

Often these lawsuits are filed just to scare you and the collectors may have little proof or no proof that you owe the debts. This could be an opportunity to get out of financial trouble if you have good representation on your side.

Check into the Debt Collection Statute of Limitations

It's important that you check into the debt collection statute of limitations when you are dealing with debt collection agencies. This is the amount of time that the collectors have to legally sue you for the debts that you owe.

Usually this time period can be 3-6 years, but it can vary in different states. Sometimes even though the statute of limitation on your debts have expired, collection agencies still may file a suit. If you can prove that the debt collection statute of limitations is past, then the lawsuit will be dismissed. You are not responsible for time barred debts.

Negotiating Credit Card Debts Yourself

Negotiating with creditors is possible, but you need to be well informed before you try this on your own. You don't want to deal with debt collection agencies without knowing your rights and being well versed in the options available to you.

Many people choose to turn to professional companies, but this is not necessary. You can go about negotiating credit card bills yourself.

If you do this, make sure you record any phone conversations if you have not stopped them at this point. If agreements are made, then make sure that you get these agreements in writing to ensure that there are no misunderstandings.

Use certified mail as well so that you get receipts back when payments or other communications are received by the collection company. Often you can reduce or even eliminate debts yourself just by negotiating and fighting debt collectors.

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