How To Deal With A Debt Collection Agency?
A call or a visit from the debt collection agency can often send one into a panic but if you know how to deal with the situation then you have no reason to be worried. They are also human and are trained to appeal to the emotional side of you. Take a deep breath and read on to know some simple tips that will help you in dealing with the debt collection agency.
How do the debt collectors work?
- It can happen to those who are very responsible when it comes to finances. Just like in any negotiation, one should know the other party very well. The primary goal of the debt collection agency is to make profits on the collection of the debt. The state law permits them to add their fees on the debt. Sometimes, they fabricate bonus debts and scare the consumers into paying them. However, please keep in mind that the debt collectors do not have the authority to seize the property or take money directly from the defaulter’s bank account unless and until they have the permission from the court to do so.
- What to do during a call? Speak minimally and do not beat around the busy when they ask questions. However, do not give them any extra information which they might use against you later on. Ensure that you have everything given to you is in written form. Never to agree with any amount of money over a call. Ask for a debt verification letter.
- How to avoid scams? Con artists can be found in every field and sector and debt collection is not immune to this menace. The debt collectors are required by the law to disclose their identity to the defaulter. So, be alert if there is any hesitation from the debt collector to disclose his or her identity. Hang up if they refuse to provide proof of their identity.
- Know your rights: the debt collectors are experienced fellows and can take advantage of you if you are unaware of your rights. For example – a debt collector can call you only between 8 am and 9 pm. They cannot use any kind of profanity or inappropriate language with you under the law. They cannot threaten to take action that is not permitted by the law.
Also, one can stop the calls and letter by asking the debt collection agency to do the same.