How to deal with Collection Agencies, Stop the
annoying calls and Get Deletions
by Lisa Phillips
annoying calls and Get Deletions
by Lisa Phillips
| Copyright RebuildCreditScores 2010 All Rights Reserved |
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Debt Validation
How to halt the collection process by
requesting a collection agency to validate
your debt
Get Deletions
Request deletions because paid collections
do not improve your credit scores.
Dispute Chexsystems
ChexSystems is subject to FCRA Rules and
they must investigate any dispute you submit.
How to halt the collection process by
requesting a collection agency to validate
your debt
Get Deletions
Request deletions because paid collections
do not improve your credit scores.
Dispute Chexsystems
ChexSystems is subject to FCRA Rules and
they must investigate any dispute you submit.
More Resources
Dealing with collection agencies can be exasperating. Many debt collectors stoop to low
tactics and will even lie to collect debts. The best approach in dealing with any collection
agency is to stay calm and know your rights.
tactics and will even lie to collect debts. The best approach in dealing with any collection
agency is to stay calm and know your rights.
Know your rights
A collection agency cannot harass or humiliate debtors, talk to your relatives, employers, co-
workers or neighbors about your debt. It is illegal for debt collectors to threaten violence or
harm to you. They are not supposed to use obscene language or the telephone to hound
you. Under no circumstance can a debt collector threaten arrest. They cannot seize your
property or garnish your wages unless they file a lawsuit.
Respond promptly to collection agencies
Do not avoid calls and correspondence from collection agencies. Ignoring phone calls and
correspondence may result in a lawsuit being filed against you. Your first and last telephone
call should include the following:
Stop the annoying calls
Stop collection agencies from calling you with a simple written letter requesting no further
contact over the telephone. Make sure you send the letter via US Certified Mail with a Return
Receipt as your proof. Be aware that original creditors are not covered under the FDCPA, only
collection agencies; however, the Federal Trade Commission can file a lawsuit against
creditors if they partake in “unfair and deceptive practices.”
If you must file a suit against a collection agency the maximum fine under FDCPA is $1000.00.
You can file for damages related to “emotional distress” and are entitled to “attorney’s fees” if
you retain private counsel.
Familiarize yourself with the statutes
Do not be intimidated when dealing with collection agencies. You have rights under the law so
be prepared to use them if necessary. View the statutes; FDCPA. Pay special attention to Title
VIII - DEBT COLLECTION PRACTICES [Fair Debt Collection Practices Act] Section 805.
Written communication only
Only communicate with collection agencies via U.S. Mail. If you call a collection agency and dial
*67 to block caller id you may be wasting your time because commercial (800) numbers utilize
ANI (Automatic Number Identification) which overrides the *67 Block. If you must call, use a pay
phone.
Create a paper trail
Detail your correspondence with the collection agency. Start by creating file with the name and
address of the collection agency, a contact person and telephone number. Keep all
correspondence you send or receive along with the envelopes. All correspondence you send
should be sent certified, return receipt and keep the green cards the post office mails back to
you.
Never disclose your financial information
When paying a debt with a collection agency make sure you do not use a personal check,
debit card or credit card. Use only money orders or cashier's checks, preferably not from your
banking institution. Collection agencies have been known to put unauthorized charges on your
debit or credit card and also put through ACH withdrawals from your checking account. Keep
your financial information private.
1 2 Next
A collection agency cannot harass or humiliate debtors, talk to your relatives, employers, co-
workers or neighbors about your debt. It is illegal for debt collectors to threaten violence or
harm to you. They are not supposed to use obscene language or the telephone to hound
you. Under no circumstance can a debt collector threaten arrest. They cannot seize your
property or garnish your wages unless they file a lawsuit.
Respond promptly to collection agencies
Do not avoid calls and correspondence from collection agencies. Ignoring phone calls and
correspondence may result in a lawsuit being filed against you. Your first and last telephone
call should include the following:
- Request the name of the representative calling you, their telephone number and the
address of the collection agency.
- Request the name of the original creditor, the amount the collector claims you owe and
when the account was placed for collection.
- Do not agree to pay anything for the debt over the telephone.
- Let them know any further response will be through U.S. Mail only.
Stop the annoying calls
Stop collection agencies from calling you with a simple written letter requesting no further
contact over the telephone. Make sure you send the letter via US Certified Mail with a Return
Receipt as your proof. Be aware that original creditors are not covered under the FDCPA, only
collection agencies; however, the Federal Trade Commission can file a lawsuit against
creditors if they partake in “unfair and deceptive practices.”
If you must file a suit against a collection agency the maximum fine under FDCPA is $1000.00.
You can file for damages related to “emotional distress” and are entitled to “attorney’s fees” if
you retain private counsel.
Familiarize yourself with the statutes
Do not be intimidated when dealing with collection agencies. You have rights under the law so
be prepared to use them if necessary. View the statutes; FDCPA. Pay special attention to Title
VIII - DEBT COLLECTION PRACTICES [Fair Debt Collection Practices Act] Section 805.
Written communication only
Only communicate with collection agencies via U.S. Mail. If you call a collection agency and dial
*67 to block caller id you may be wasting your time because commercial (800) numbers utilize
ANI (Automatic Number Identification) which overrides the *67 Block. If you must call, use a pay
phone.
Create a paper trail
Detail your correspondence with the collection agency. Start by creating file with the name and
address of the collection agency, a contact person and telephone number. Keep all
correspondence you send or receive along with the envelopes. All correspondence you send
should be sent certified, return receipt and keep the green cards the post office mails back to
you.
Never disclose your financial information
When paying a debt with a collection agency make sure you do not use a personal check,
debit card or credit card. Use only money orders or cashier's checks, preferably not from your
banking institution. Collection agencies have been known to put unauthorized charges on your
debit or credit card and also put through ACH withdrawals from your checking account. Keep
your financial information private.
1 2 Next
Related Topics:
Fair Debt Collection Practices Act
Collection agencies are regulated by the Fair Debt
Collection Practices Act (FDCPA) of 1977. This act
puts regulations and limits on how a collection agency
may conduct itself and when collection agencies may
contact a debtor about past due accounts.
The FDCPA promotes and protects the fair treatment
of consumers by prohibiting debt collectors from using
unfair, deceptive, or abusive practices.
Collection agencies are regulated by the Fair Debt
Collection Practices Act (FDCPA) of 1977. This act
puts regulations and limits on how a collection agency
may conduct itself and when collection agencies may
contact a debtor about past due accounts.
The FDCPA promotes and protects the fair treatment
of consumers by prohibiting debt collectors from using
unfair, deceptive, or abusive practices.
Federal Trade Commission
The Federal Trade Commission (FTC) enforces this Act which applies to professional debt
collectors who collect on loans they did not originate, including law firms that act as debt
collectors. Technically the FDCPA does not apply to original creditors such as banks,
department stores, and other lenders who collect their own debts; however, no reputable
lender is permitted to use such practices. Below are tips to deal with collection agencies:
The Federal Trade Commission (FTC) enforces this Act which applies to professional debt
collectors who collect on loans they did not originate, including law firms that act as debt
collectors. Technically the FDCPA does not apply to original creditors such as banks,
department stores, and other lenders who collect their own debts; however, no reputable
lender is permitted to use such practices. Below are tips to deal with collection agencies:
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