How to Respond to a Collection Call
So you've fallen behind on your credit card account, with no sign of help in sight. The lender will attempt to bring you back up to speed, but if you're in a situation that can't be resolved in a timely fashion, they will send your account on to a collection agency who will work to collect the money you owe. Before you get that first call demanding repayment, make the decision ahead of time to be proactive about your precarious situation and confident with the caller.
Take Control
Don't play the victim about your delinquent accounts. No matter what circumstances may have added to your troubles, the bottom line is that you are ultimately responsible to find a way to make your financial situation right. When you receive a collection agency call at a time that is inconvenient, don't feel obligated to discuss the issue. Suggest a better time for you and request a call back. Don't get caught in an argument or agree to any terms of repayment unless you've had the time to thoroughly examine the proposal.
Be Prepared
Have the account information readily available in anticipation of a debt collection call. Have paper and pen handy to write down everything that is said. The caller will be taping your conversation, so be as detailed as possible in your notes. Include the time and date of the call, the full name of the caller, the collection agency's name and address, the name and address of the original creditor, the amount allegedly due and the account number. These notes may be important, if you have to face the collector in court.
Not Too Fast
Debt collectors have access to most of the details that need to fulfill their duties. So if you're asked for sensitive account or personal information, use caution. Thieves have been known to pose as debt collectors to glean identifying information from unsuspecting consumers.
Until you are certain that the account they are referring belongs to you, don't answer or volunteer information. Make a request for written documentation from the collection agency that includes all the details of the account.
You Have Choices
Once you have figured out that it is your debt, it's time to get busy. You have the four options to choose from - pay off the debt in full, dispute the debt, accept a settlement to repay or mail the collection agency a cease and desist letter. A collection agency should be offering help, but if you feel pressured, cut the conversation off and hang up.
Questions and Answers
Collection agencies are hired for debt collections. Debt collection agency provides services for bad debt recovery which include debt collectors and credit consultants. Collection agencies work on your bad debt recovery with minimum hassle to you.
The question that many people are asking is 'can collection agency sue for a debt?' With the amount of people suffering financial hardship due to the current economic crisis the number of people facing difficulties paying their bills is increasing rapidly and for the time being, at least, this trend shows no sign of reversing.
The FDCPA, also known as the Fair Debt Collection Practices Act, under the jurisdiction of the Federal Trade Commission and the United States Congress, was signed into law to protect consumers from harassing collections calls, unethical collections practices, and other means of collecting consumer debt that are FDCPA violations, and could be punishable by fines or even imprisonment, in the most serious of instances. The laws applies only to third party collections agents.
Debt collection agencies will try a variety of methods to get people to make payments. This includes the threat to take you to court to secure payment of the debt. Find out if this is just a threat or if a collection agency can really sue you.
Keep records of your correspondence with your debt collector. You should keep all receipts, debt collection letters, bills and other documents for your future reference. When speaking with a debt collector over the phone, jot down the name of the person you're speaking with and the date when the conversation took place. You can also give notice that you'll be recording the phone call for your reference.
There are several laws that may affect an account that has gone to collections and/or the consumer's relationship with the collection agency. The main laws that can affect collections are: 1. The Fair Debt Collection Practices Act (FDCPA) 2. The Fair Credit Reporting Act (FCRA) 3. The Health Insurance Portability and Accountability Act (HIPAA) 4. The Truth In Lending Act and Fair Credit Billing Act 5. State laws
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