Debt collectors is an umbrella term used to describe debt agencies, debt collectors, and lawyers who collect debt from people like you as part of their overall practice. There’re also committed firms that obtain past-due loans from banks and seek to recover them.
If a debt collector calls, it’s essential to understand your rights before speaking with the them, making any payments, or providing personal details. Here’s all you need to know:
Check the Agency’s Legality
Check to see if the call is from a legitimate debt collector. Scammers pose as workers of a collection firm to gain access to your details.
Validation options include:
- Request their business name, caller name, company address, phone number, and legal license number before sharing any personal information or making a payment.
- Call the creditor to find out which debt collection agencies they have approved to recover on their behalf.
- Assess your credit sheet; this will assist you in determining the legitimacy of the debt caller as well as clarifying the debt.
Don’t Ignore Them
Debt creditors will contact you before the debt is settled in full. Ignoring a debt collector while the payment is due will hurt your credit score.
Get It Down In Writing
Never hand out your contact number, bank account information, or credit card information before the debt has been checked and written down. You have the freedom to decline debt-related conversations before you get a formal “validation note.” Collection agencies are required by statute to give you a confirmation letter within five days after obtaining your inquiry.
Debt collectors are known for settling unpaid debts for pennies on the dollar. As a result, you have negotiating power. If they need a one-time lump sum payment or annual installments, determine how much you can easily spend. Prepare to compromise and obtain a written bid.
Dispute the Debt
If you believe the debt collector called you by mistake because you don’t owe the debt, you may dispute it. You get 30 days after the day you get the confirmation letter to answer why you believe the assertion was made in error. The collection officer must report the case to credit bureaus if you dispute the debt.
Don’t Give Personal Information Over the Phone
Avoid excessive speaking, regardless of whether you will settle the debt or not. Don’t say anything on the phone, like whether you’ll be able to pay or not. Request a document explaining the original debt information instead.
Get Legal Support
Use an attorney or a legal aid society in your area if a debt collector is threatening you or if they plan to sue you. If they threaten your rights, you have the right to sue.
007 Credit Agent can assist you in dealing with debt collectors. Contact us today to schedule a one-on-one consultation; we’ll help you deal with the negative debt caused by debt collection companies like Portfolio Recovery Associates, Diversified Consultants, Enhanced Recovery Company, Radius Global Solutions, or Jefferson Capital Systems.