Dealing With Debt Collection Agencies - Buying Time

Consumers are federally protected in their dealings with debt collection agencies who must abide by these rules or face possible fines or sanctions. If you want to take control when facing debt collection efforts, you need to know your rights related to such actions. Here's some rules to consider.

Terminate Contact with the Debt Collection Agency

You are within your rights to demand that a collection agency cease all further contact with you and they must comply, except if they want to inform you that either your debt has been canceled or that you will be sued. Going forward, they must direct all communication through your lawyer to which he/she must respond. Alternatively, you can tell them that you want to deal only with the original creditor, not with them. Then you need to reopen negotiations with that creditor.

Intentions to Follow Up by the Debt Collection Agency

Debt collection agencies are prohibited by law from threatening actions they do not actually intend to take. For example, if they inform you they are planning to sue you to recover your debt, they must follow through with the action, or they are guilty of intimidation and coercion, which they are not allowed to do. If this has happened to you, you can file a complaint with either your state Attorney General's office or the Federal Trade Commission.

Verification of  Your Debt

Upon request, debt collection agencies must provide written proof of your outstanding debt, including exactly how much and to whom. The time involved to produce a statement of your account can give you an opportunity to either come up with the necessary fund or reach a settlement. The collection agency has five day in which to provide you proof of liability and their authorization to collection on your debt.

Once your debt has been officially verified, you can still dispute its accuracy by sending the collection agency documentation of the error. You must follow up within 30 days of its receipt, using certified mail. Otherwise, you indicate you accept their findings and collection activities will resume.

You have one more way to gain a temporary reprieve within thirty days after receipt of the validation notice. That is to ask for further verification on the judgment the claim is based on, plus the original creditor's name, address, and contact information. An attorney can help you determine the best option for your situation.

All collection activities must cease while the facts are in dispute, until you receive the information requested. Again, file a complaint with the proper authorities when facing debt collection agencies that refuse to comply. Never assume that things will just resolve on their own, even if you know the facts are on your side. You can still end up with a judgment against you if a collection agency takes action against you.

Enforce the Rules Governing Debt Collection Agencies

Debt collection agencies are governed by federal laws when trying to collect what's owed them, but you need to hold them accountable for playing by the rules. Seek government intervention if you have been mistreated or not heard. Delaying the process can give you just enough time to negotiate an equitable settlement, either with the debt collector, or your original creditor. Remember to get any such agreement in writing, stating it's payment in full and ask that any negative marks be stricken from your credit report.

If you have debts that have been sent to collection, it's important that you understand the rules of the game. You can avoid a great deal of hassle and possibly even save some money by gaining a better understanding of the process.