It’s something every consumer dreads: a call from a debt collection
company asking about unpaid credit bills, student loans that are past
due, or a medical debt that has been forgotten about for months.
Credit counselors, state regulators and debt
collectors all agree on one thing: ignoring a debt collector’s phone
calls and letters is not going to help get rid of the debt. The only way
to really stop them from bothering you is to deal with the debt,
otherwise, it will only get worse.
Here are 4 tips for consumers to help deal with debt collectors.
Avoid them altogether
Contact
your original creditor to work out some kind of payment plan that you
can handle with your current financial situation. Most financial
institutions are open to customized payment plans especially if their
clients request for it. If you don’t contact them, they will sell the
debt to a 3rd party credit or debt collector.
Know your rights
This
might just save you from paying thousands of dollars. The FTC or
Federal Trade Commission has a collection of publications made to help
customers learn about the Fair Debt Collection Practices Act, a law that
protects their rights-under the act, nuisance and harassing phone
calls, abusive language and threats are illegal.
These
should be taken note of and reported to your state’s attorney general’s
office and the FTC. Debt collectors usually have a debt collection
lawyer in California working together with them. Try to ask for the
contact information of the lawyer so that your lawyer can personally
send a complaint to him or her.
Never ignore these phone calls and letters
You
have to reply or work on these notices right away. You have the right,
according to law, to write or call in for a copy of a verification of
the debt being asked from you. Make sure that the debt being collected
is actually yours. You also need to make sure that it’s not old debt.
You could have paid that amount already and the debt collection lawyer
in California is using old data from your original creditor.
Get a lawyer
You
can’t do this alone. It’s easier to get a credit lawyer to help you out
with the situation. They know everything about the system so any
loopholes and problems found in your case can be fixed. You also end up
saying money if you get a lawyer since they will check the debt if it
matches to how much you really owe.