Receiving an email or phone call from debt collectors can be disturbing, especially when you’re dead broke. But one thing you’re fully aware of is debtors don’t care about your financial situation. All they want is their money.
Dealing with debt collectors can be a nightmare and stressful. But you shouldn’t be scared of debt collectors because they must also act within the rule of law. Yes, there’s a line they cannot cross.
Understanding how to deal with debt collectors will give you some peace of mind even if you’re still unable to pay. Take a look at this helpful guide on how to deal with debt collectors.
Your Rights Are Important
The Fair Debt Collection Practices Act protects your rights as a consumer. These rights protect you from any form of discrimination and harassment.Some of your rights in the act include communication rights, protection from harassment, and misinterpretation.
On communication, debt collectors shouldn’t call you any time they feel. Don’t let them harass you even if you haven’t paid your debt. They’re not allowed to abuse you or use refraining language in any way.
You have the right to report them to the authorities if they display any of the above behaviors.
You Can Negotiate Your Debt
Debt collectors are not machines or robots but humans. You can try to negotiate with them and ask if you can pay your debt little by little after you’ve received your debit statement. You can request them to allow you to spend on a set plan if they insist on having full payment on the due date.
Negotiating can enable you to pay your debt in a lump sum. If you’re lucky enough, some collectors can forgive you. So, don’t strain yourself so much if you haven’t considered negotiating. Explain your financial situation, and they’ll understand.
Don’t Pay What You Don’t Owe
You should always know your debt. This will give you confidence when your debt collectors start calling or emailing you. For instance, if you have a no credit check loan, understand all the consequences of not paying this loan on time. Understand the terms of the loan, the interest rate, and any other detail. Don’t let the collector trick you into paying more. If you have been contacted by a collection agency you should avoid taking out any more loans until your issue is resolved. Once your issue is resolved with this debt you can get some tips to boost your chances of getting approved for a loan.
Get Everything in Writing
Don’t give in to pressure by giving out your personal information such as your bank account or your credit card reports.
Make sure you receive the written validation of your debt. You have all the rights not to talk about your debt if they don’t give you the proof that they’re certified debt collectors.
They have to state the creditor’s name, the amount, and how they intend to collect their debt.
Check on the Validity of the Collector’s Agency
Some many fraudsters and scammers can be preying on your money. Verify the validity of the debt collector’s agency before responding to their inquiry.
You can use various ways to know the collector’s authenticity before making any payment. Ask about the company’s name, professional license number, and company address.
You can also ask your creditor, the agency they’ve authorized to collect their debts. To determine the validity of the collector, you can also check your credit card report.