Dealing with Debt Collectors & Your Rights
Experiencing financial difficulties can be stressful for anyone. When things get to the point that debt collectors are contacting you, you may even dread going home. If you take some time to educate yourself, there are things you can do to help you better negotiate the world of debt collection.
The first thing you need to know is that when you are dealing with debt collectors, you are dealing with people who go through training to make themselves successful at what they do. You are already at a disadvantage, because for most of us, falling on hard times happens without much warning and certainly without a handbook. The best thing you can do is know up front what your rights are when it comes to debt collectors. The Federal Trade Commission has regulations in place to protect you from unscrupulous collectors, and you should know what they are and are not entitled to do in their efforts to collect a debt from you. The FTC can provide you with a free brochure, but check in to your state laws as well.
Understand which bills are your priority to pay. A debt collector will insist that the bill they are trying to collect is THE bill you should pay before all others, but that isn’t necessarily the case. Paying off your credit card bill is obviously not as crucial as paying rent, buying groceries, or securing medical care, so don’t allow yourself to be coerced into thinking that your debt collectors’ bills should be paid first.
When making payment arrangements with a debt collector, allow yourself some time to figure out what a reasonable amount of money might be for you to send them on a weekly or monthly basis. Don’t agree to a dollar amount in the heat and stress of a phone call. Hang up, sit down and realistically consider your bills. Always underestimate the amount you can afford to pay on your debt. The collectors are much less forgiving if you give them a dollar amount and then are unable to pay that much each month, and even if you feel like you can afford the set dollar amount today, a time may come when something unexpected happens and you are not able to afford the agreed upon terms. Offer terms that are less than what you think you can comfortably afford.
Never provide more information than you have to when speaking with a debt collector. They do not need to know the name or location of your place of employment, and they definitely do not need any of your bank account information. A debt collector also does not want to hear about the hardships that you are experiencing, and in some cases, it does not work out to your benefit to give this information to a debt collector. They are trained not to be sympathetic to whatever you may have going on in your personal life, and you may give them information that they can use against you, making you feel more obligated to pay them first.
If it is possible, record any conversations you have with debt collectors, and try to maintain a level head in talking with them. It may seem at times that they are trying to get you upset, but remember that this will only work in their favor. You are more likely become flustered and agree to terms you really are not able to handle. In all likelihood, they are recording their conversation with you, so especially if you are prone to getting anxious, it will be helpful to replay the conversation when you are off the phone and can review what transpired.
If you are not able to record your conversation, take the best notes that you can about what is said and what is agreed upon. If you have multiple phone conversations, keep a log, recording the dates and times of the phone calls, and make sure you have the name of the person with whom you have spoken. If you are also receiving letters in the mail, try and match up your notes from phone conversations with the letters that are coming in, and file them together so you will have the full picture in front of you when you need to discuss a particular debt.
Once an agreement has been reached, make sure that you get a copy of your agreement in writing before you begin making payments. Not only will this help you if there is a question down the road regarding the terms of your agreement, it will also prevent you from entering into an arrangement you can’t really afford. By allowing yourself the time to get the paperwork in the mail, you prevent yourself from agreeing to wire funds immediately or committing to sending a payment via overnight mail.
Lastly, a debt collector works on commission. It is in their best interest to get the most amount of money from you in the shortest period of time possible. No matter how nice they may sound on the phone, don’t allow yourself to be talked into terms you cannot reasonably meet.
Source – MSN Money