Buying Time With Collection Agencies PDF Print E-mail
Written by Mark Andrade   
Tuesday, 03 August 2010 18:00
Collection agencies must follow certain protocols when undergoing debt collection. These federally mandated requirements were devised to protect consumers from predatory debt collectors. Knowing your rights when facing debt collection efforts can help you take control of the process to lesson its pending impact. Follow these rules to get some relief.
by MarkAndrade


Collection agencies must follow certain protocols when undergoing debt collection. These federally mandated requirements were devised to protect consumers from predatory debt collectors. Knowing your rights when facing debt collection efforts can help you take control of the process to lesson its pending impact. Follow these rules to get some relief.

End of Conversation

If a debt collector contacts you in regard to an an account sent to collection, you can tell them to stop all communications with you and to go through your lawyer instead who must respond to their efforts. By law, the agency must immediately stop contacting you, except to inform you that either all collection efforts have been canceled or to inform you that you are being sued. Another option you have is to tell them that you want to negotiate with the original creditor instead, and then revisit that avenue.

Intentions to Follow Up

When a collection agency tells you it's planning to sue you, it must actually intend to do so. They cannot just threaten to sue you for intimidation purposes and not follow through. Federal laws protect you from this kind of coercive action and you should report it immediately to either your state attorney general or the Federal Trade Commission (FTC).

Verification of Debt

When dealing with collection agencies you can request a validation notice from them, clearly stating your financial obligations - to whom and how much. This could buy you a little time to either settle the dispute or come up with the money. The collection agency then has five days in which to verify it is authorized to collect on this debt and verify your liability.

If, once you receive proof of your debt, you think the facts are wrong, you must send the collection agency evidence of the error by certified mail within 30 days of its receipt. If you don't dispute the facts at this time, the collection agency will assume the debt is valid and continue to pursue action against you.

One more option for postponement is available after you receive the validation notice. You have thirty days in which to request further written proof of any judgment on which the claim is based, as well as the name and address of the original creditor. Your attorney can help you navigate these options.

While the facts in your case are in dispute, the collection agency must postpone all debt collection activities until the information requested is received. Contact the proper authorities to complain about any violations. Don't assume that just because the facts back you up that everything will resolve in your favor. Inaction on your part can result in a judgment against you.

Enforce the Rules

Federal laws outline appropriate actions that can be taken by collection agencies. If you feel you have been mistreated by a collection agency, you must report them to the proper authorities. Doing so will ensure they are held accountable for unscrupulous or dishonest activities. Your actions could circumvent the process long enough for you reach a settlement or come up with the necessary funds. Don't forget to get any agreements in writing, especially regarding receipt of payment, dissolution of debt, and ask that any related negative items on your credit report be removed.

If you're being hounded by a collection agency, knowing the rules of the game can deliver you from their clutches. Once you understand the process you will have the tools you need to avoid the hassle and possibly even repair your credit while you retire your debt.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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