Debt Collectors - How to Deal With Them Effectively

March 12th, 2009 | Posted in Debt collectors

If you’re in the unfortunate situation where you are dealing with debt collectors, keep one thing in mind: these people are not out to do you any favors. Of course, you need to pay off your debt, but you also don’t deserve, nor should you be subjected to, harassment, intimidation, and threats by bill collectors.

Here is some advice on how to deal effectively with debt collectors.

Once the phone calls start, your first move should be to insist that they communicate with you in writing. This way you can verify that they are who they say they are and you can also get their name, address and phone number to keep in your records. Also, having written proof of all your correspondence with the service may prove invaluable should you end up in court – it’s always better to have things in writing. They are also less likely to misbehave and use questionable tactics this way.

Never give out any personal or financial information over the phone no matter how pressured you feel. Insist that they put their request in writing and mail it to you. If they refuse and keep harassing you, simply hang up on them. You don’t really know who is on the other end of the phone. It could be a thief who got enough of your personal details to sound legitimate, or it could be an unscrupulous debt collector that will take your financial information and clean out your bank account illegally.

If you are offered a deal from the debt collection agency that sounds a little too good to be true, it probably is. In some cases, debt collectors will attempt to make a deal with you to pay off a reduced amount if you can pay the lump sum right away. Once you’ve made that payment, they could sell the remaining debt to another debt collector! And the worst part is that it is legal in some states for them to lie to you like that.

If you are being hounded by aggressive debt collectors, you can save yourself a lot of grief by contacting a lawyer. While it won’t be cheap, at least you’ll know your rights and discover some options that are available. The piece of mind, alone, could be worth it.

You may also qualify for legal assistance if your income justifies it. Search for legal aid in your area or contact your state bar association to find out. If you’re eligible, you may be able to consult with an attorney for free, or at a reduced cost. Some lawyers even volunteer their time and may see you for a free 1 hour consultation to discuss your legal rights. This can save you from making costly mistakes when dealing with aggressive debt collectors and dings to your credit report.