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When a debt collector calls you, you may be caught off guard. Being unprepared in such a scenario could make you agree to any terms put across by the debt collector. You may also lose your temper in the process, which would not play out in your favor.
Knowing some fundamental do’s and don’ts regarding how to handle a debt collector call can help you deal with such a situation more effectively.
What Should I Do When a Debt Collector Calls?
It is crucial that you remain calm throughout the phone conversation. Take the following steps when called by a debt collector:
Ask for Documentation
At the start of your conversation, request that the debt collector provide you with a debt validation letter. This is within your legal rights as they are obligated by law to offer you this document within five days after contacting you.
Expect the validation letter to contain information regarding the owed amount and your original lender.
Record the Conversation Details
It would be best if you had a collections entry, a recorded sheet with the time and date when your debt collector called, their name, and the highlight of the conversation.
Your collections log can be on your computer, a piece of paper, or a notepad. Such a record will help you keep track of the person calling, their organization, and the debt details. It will also aid you in monitoring the frequency of specific collector calls. With a collection call log, you can easily spot discrepancies from the various callers.
Hold on to any messages from collectors that may be interpreted as harassment. Such records can be helpful if you choose to sue them in court or settle the debt. You can find out more on how to deal with abusive debt collectors through this
Negotiate the Payment Terms
For legit debts, you could try to follow some type of payment schedule for your debt. You could negotiate the terms of your payment to a significantly lower amount.
If the debt owed is a considerably large amount, creditors might be willing to agree to a single payment of only 40%-60% of the initial owed amount. Most debt collectors actually prefer to negotiate for a lump sum payment of a smaller amount than installment payments.
What Do I Avoid During a Debt Collector Call?
No one likes calls from debt collectors. They can be stressful and frustrating. Here are a few things that you should avoid when speaking with a debt collector:
Disclosing Personal Information
Never give out your bank account or social security number to a debt collector. Refrain from sharing details concerning your finances or income. Keep your phone conversation as short as possible, and ask for all written data. Some personal information you should not give out include:
- Social security number
- Bank account number
- Value of your property
Making a Payment in Good Faith
Most times, a debt collector will request that you pay a certain amount not included in the settlement contract. They may mention that the payment is in good faith. This payment cannot prevent the debt collector from serving you a lawsuit. It also does not boost your credit history in any way.
The payment will stretch out the limitation period. In several states, the term of limitations begins from the day you make the final payment. Each new payment, regardless of the amount, starts the limitation period again (source: https://www.suethecollector.com/how-to-handle-collections-and-debt-collectors/). This article will provide you with the statute of limitations on debt collections by state.
Being Quick to Anger
You should avoid becoming hostile, screaming, or using profanity. If you are the abusive party in the call records, you could be disadvantaged in a lawsuit. You could also unintentionally offer the debt collector private information that you may have otherwise withheld.
If you require legal assistance to help with an abusive collector, find out the best way to handle your debts, or negotiate a settlement, consult with an attorney. Immediately after obtaining an attorney, the debt collector will need to contact your lawyer. Simply having someone else communicate with a debt collector may reduce your stress significantly.
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