Collection Agencies; what you should know.

If you have the unfortunate privilege of dealing with a collection agency here are some things you should know:

First, know that you do not have to talk to them when they call you. If you do talk with them, do not let them scare you into sending money. They may try to tell you "This is the last chance you have to pay or we will begin legal action.” A third party collection agency cannot do anything legally against you. Only the actual business attempting to collect or a collection agency that purchased your debt can take you to court to collect.

Collection agencies will often tell you anything to get you to send money. If they call and you have no money simply, tell them you have no money and you will settle with them when you have the money.

When dealing with collection agencies you have to remember with whom you are working. The collection representative will try to act as though they are your friend and they are trying to help you. In some instances, they will even play good cop bad cop between the collector and his or her supervisor. The collector is not your friend.

The collector is usually on commission according to how much money they collect.
Management usually pressures collectors to take action to get dollars, now.


If the collection agency agrees to settle with you for less than you owe:

Record the time and date of whom you are talking and get all the details in writing. Put the record of this conversation in a safe place. You may need it in the future.

If the agency will not give you the details in writing do not send any money

Never let the debt collectors draw automatically from your checking or savings account. and never send a post-dated check.

The most important law to remember is the Fair Debt Collection Practices Act, which places many restrictions on collection activities. The FDCPA only covers third-party collection agencies, not original creditors.
Each state may also have applicable laws regarding such things as telephone harassment.