If you owe money to a creditor debt collection agencies can report your debt to credit bureaus, file suits against you, and should be taken very seriously. The best way to protect yourself and your finances is a methodical approach. First, know why you are being contacted. Know what the debt is from and exactly how much it costs.
Ask for the name of the person calling, the agency, the creditor, and the agency’s address and fax number. You have the right to tell a collector over the phone that you want all future contact to be in writing. Follow up all requests with a written request.
Keep in mind if you tell the collector not to contact you at all it is entitled to call you once more to let you know how it plans to proceed. Another request that can be made is that you are the only person that should be contacted. It might be a good idea to keep a file including dates and details of phone conversations and when you send or receive letters.
If you do send any correspondence in writing to the collections company do this by Certified Mail, Return Receipt Requested. Utilizing this service guarantees that the letter reached the collector, giving you a signed receipt as proof. If you work out a re-payment plan over the phone, request the terms of the plan in writing. Any promise to remove or adjust credit history should also definitely be documented.
Always be certain that you pay the right party; payments should be made to the collections agency, not the creditor, unless you have been otherwise instructed to do so. Carefully glance over the amount you are being requested to pay. Size up any interest, fees or charges that have been added.
If you feel like your bill collector is being abusive or hostile, make sure that you mention it to the agency and always keep this complaint on file. The last thing to remember is do not ignore a collector. Even if you feel that the debt is not yours; they will continue to call and it may mean more trouble and time in the long run.
Mallory McGuinness works for a debt collection agency. Also she writes articles on business and finance, consumer spending and collection agencies. This and other unique content ‘medical collections’ articles are available with free reprint rights.
