What to Do When Collection Agencies Abuse Their Power?
Collection agencies can have annoying and frustrating tactics when it comes to taking money that they feel is entitled to them.
It is very important that you keep your cool over the phone because a lot of times debt collectors will tell you lies in attempt to collect a debt.
You can avoid these idle threats by knowing your rights according to documents such as the Fair Debt Collection Practices Act.
If collectors know that you understand your rights under the law they are less likely to use scare-to-pay tactics on you; they may even respect you! On the other hand, if you know you do owe the collections agency money that you never paid them be sure you check your records to be sure that the account balance matches what the debt collector is telling you over the phone.
If unsure of anything ask the debt collector how they formulated the amount that they claim you owe.
Their word is not enough! Make sure they provide you with the proof and a debt validation letter.
The next thing you have to do when dealing with collection agencies is not so obvious; it is your duty to be sure that you have written records all phone calls you have had with the debt collectors.
When they contact you ask them for their name, number, or employee identification number if they refuse to give you the latter two; let them know you need their information for future reference.
It is also a very good idea to record the phone conversation granted that you own a recorder in the first place.
Debt collectors will treat you with the utmost respect if they know they are being recorded.
Playing it cool with the collection agencies will give you the upper hand for the most part as they are used to dealing with consumers that are extremely rude and aggressive.
If you decide you want to pay the debt that the collection agency is trying to collect then pay it off on your own terms.
Try to pay the smallest amount on your credit score as the damage to your credit score has already been done.
Please note that if you are trying to pay off a debt for the purpose of obtaining a mortgage loan some lenders may require that you settle the debt very quickly.
Do not under any circumstances tell the debt collector nor the lender that you are trying to pay off your debt to qualify for a mortgage loan; all of your power/rights will "take a dive" for the worst! They will end up making you pay the highest amount possible.
It is very important that you keep your cool over the phone because a lot of times debt collectors will tell you lies in attempt to collect a debt.
You can avoid these idle threats by knowing your rights according to documents such as the Fair Debt Collection Practices Act.
If collectors know that you understand your rights under the law they are less likely to use scare-to-pay tactics on you; they may even respect you! On the other hand, if you know you do owe the collections agency money that you never paid them be sure you check your records to be sure that the account balance matches what the debt collector is telling you over the phone.
If unsure of anything ask the debt collector how they formulated the amount that they claim you owe.
Their word is not enough! Make sure they provide you with the proof and a debt validation letter.
The next thing you have to do when dealing with collection agencies is not so obvious; it is your duty to be sure that you have written records all phone calls you have had with the debt collectors.
When they contact you ask them for their name, number, or employee identification number if they refuse to give you the latter two; let them know you need their information for future reference.
It is also a very good idea to record the phone conversation granted that you own a recorder in the first place.
Debt collectors will treat you with the utmost respect if they know they are being recorded.
Playing it cool with the collection agencies will give you the upper hand for the most part as they are used to dealing with consumers that are extremely rude and aggressive.
If you decide you want to pay the debt that the collection agency is trying to collect then pay it off on your own terms.
Try to pay the smallest amount on your credit score as the damage to your credit score has already been done.
Please note that if you are trying to pay off a debt for the purpose of obtaining a mortgage loan some lenders may require that you settle the debt very quickly.
Do not under any circumstances tell the debt collector nor the lender that you are trying to pay off your debt to qualify for a mortgage loan; all of your power/rights will "take a dive" for the worst! They will end up making you pay the highest amount possible.
Source...