If one day you need to deal with debt collection agencies, do you know how to handle the matter flawlessly and avoid further legal issues? When you are stuck with these phone calls, letters, and personal visits, your reaction matters most. How will you react to such intimidating questions? What can you do to satisfy the collection agency representative?
In this guide, you will get fine ideas and principles that will help you survive the stress debt collection agencies bring. It will not detail on how you can possibly pay your debt, but you will know how to answer, respond, and react to their queries.
Let's start with knowing your rights. One of the common complaints of debtors is the way debt collection agencies play the game. They don't play by the books; sometimes, they play hard ball. They are doing these antics because most let them do it. Why? Consumers don't know the rights they have; they are ignorant what the law allows and what the law prohibits.
Have you read the Fair Debt Collection Practices Act? If you haven't, get a copy now. Understand what's in it. Here's one you must know: The debt collection agency can only call one time in a day, but not more than three times in a week. Strike a consumer agent who harasses you with stressful calls with that knowledge. Certainly, they will flee from you.
Next thing to remember is there's power in information. Do you know how much you owe? You can request a free annual credit report from the three major reporting agencies. The annual report details how much you owe and who you owe. If one of your debts almost reaches the 7-year limit, don't do an action on it. It will fall off your credit report after seven years, but you do an action on the debt, it will start off the 7-year time limit.
With regards to knowing you rights, you keep a record of the calls you receive. You can use this information when filing a complaint with the FTC and the Attorney General's office. This way you can keep a record of who calls you and the time of the call. For your creditor's concern, on the other hand, be sure to tell them you can't pay the scheduled payment. They prefer to give you a good repayment schedule and term than to chase you.
Lastly, always keep the attitude towards the debt collection agency representative. As much as you can, keep your cool. If a representative calls you, be sure to ask politely for their information. Do not be angry with them. Never say you will not pay the debt. You will pay, but you just don't have the capacity to do that now.
