There are many tips about how to handle debt collection agencies but have you ever thought about not bothering with them at all? These collection calls can really put a lot of stress into your life and if you do not have the right disposition for it, that could really make your life miserable.
When you start receiving debt collection calls, that does not bode well for your finances. That simply means that you have been defaulting on your payments. Naturally, creditors would want to take back what is owed to them. If you refuse to make your payments, even when it is due to a financial crisis, they will turn you over to debt collectors.
Who makes these debt collection calls?
The debt collection calls are made by debt collectors. They are employed by agencies to help collect unpaid credit obligations. They make a living to specifically force consumers to pay back their debt.
If you think about it, there seems to be nothing wrong with the whole arrangement. Your debt is, after all, your responsibility – regardless of the situation that led you in a position to be unable to pay off your dues. However, debt collectors are usually sneaky and tricky in their debt collection practices and that is why you are advised to exert extreme caution.
In some cases, creditors maintain ownership of the debt and simply hire the debt collection agency to fulfill the tedious task of getting you to pay. It is oftentimes more economical for them to hire a third party to pursue you for your debt payments. In other instances, the debt collection agency purchase old and uncollected debts from creditors at a discount and take over the collection entirely.
Most of the time, these debt collectors are driven by commission. This prompts them to resort to abusive practices just to get you to pay your dues. If they are able to collect from you, that means more income for them.
The collections will come in the form of a telephone call or a letter. Once your credit account is passed on to them, you can expect that it is already marked on your credit report.
An important information that you need to understand is that these collection professionals are bound by the law to refrain from using abusive practices when they are pursuing you for payments. Make sure that you know your rights by reading the FDCPA or Fair Debt Collection Practices Act. If your rights are being violated, this law gives you the authority to file a complaint against the said debt collector and the agency they are representing.
3 tips to keep debt collectors from hounding you
Even though you are responsible for the debt, that does not mean you should be harassed for it. And it it gets too difficult and stressful, there are things that you can do to stop the collection calls from happening again.
Pay off your debt
Obviously, paying off what you owe will stop the collections. They have done their part and are probably going to take a huge commission because of it. Of course, this is hardly what most people can do. The reason why you defaulted is usually because of a financial difficulty. Unless you have recovered already, this is unlikely to happen.
Send them a cease and desist letter
Under the FDCPA, you have every right to demand that collectors stop calling you. If things get too stressful, you can compose a cease and desist letter, send it to the collection agency and make sure you get the return receipt. The debt collector is only allowed to get in touch with you one last time to tell you that they will acknowledge your request. They will also inform you of any action that they will make from thereon. It can be a lawsuit or something similar. Here is a video from About.com that will teach you how to write a cease and desist letter.
Enroll in a debt relief program
Sometimes, debt collectors will stop calling if they have evidence that you are trying to pay off what you owe. So if you enroll in a debt relief program, that would get them off your back. It also helps if you choose a debt solution that provides you with a debt professional like in debt management or debt settlement. Most of the time, the paid services include taking over the collection calls. That should help give you peace of mind so you can focus on growing your debt payment fund. By doing so, you can increase your contributions and hopefully get out of debt faster.
Debt collectors can be difficult to deal with and if they refuse to stop being abusive, know that you have every right to report them to the authorities. You need to make yourself aware of your rights. Visit the website of the Consumer Financial Protection Bureau for more details. In the end, knowing will save you from the harmful effects of debt collection calls.