Don’t let collection agencies scare you!
I hate it when collection agencies call people and make threats, or offer payment plans that people can’t possibly keep. All too often, the collection call or letter will put fear and fright into a persons mind.
The fact is, collections agencies are suppose to adhere to specific federal and state standards, (FDCPA) Fair Dept Collections Practices Act established by the federal government, but many of them use tactics that go way beyond what the laws allow. Often, when an agency can not collect from you, the account is given to another more aggressive agency that will stop at almost nothing to get your money. In some cases, the agency calling you is a scam. They get your information from credit reports, or boxes of collection agency reports improperly discarded.
Here are a few suggestions I recommend when you are first contacted by a collection agency.
Keep an accurate record of the agency name, the callers name and ID number, and the time and date of the call or each letter you receive.
If you don’t believe the bill is yours, send them a letter or e-mail requesting all of their supporting documentation, including original credit applications if applicable. This is not only your write, but a legal requirement if requested. Remember to keep copies of any letters or e-mails you send to the agency.
If you don’t want to be called at home or at work, send them a letter, e-mail or fax to let them know. If you tell the agency in righting, they have to stop the calling.
Never, and I mean never give anyone your Social Security number, date of birth, or banking information. Ask the caller what they have for information, and only verify the accuracy. Do not correct the information if it is incorrect, just politely tell the collector it’s not accurate, but don’t ever correct it for them. Scam artists will often use the information YOU provide to gain access to your credit or banking information.
If the letter or especially the caller is threatening or rude, contact the original creditor, and file a complaint about their collection practices.
Don’t panic if they threaten or begin legal action. If you don’t owe the money, can’t make the payments they offer you, or even if the bill is not yours, and you can prove it, you stand a much better chance going in front of a judge or clerk magistrate.
If you are on a fixed income, such as Social Security, veteran’s benefits, or public assistance, offer to send the agency proof of your limited income. Federal law and the laws of some states prohibit collection agencies from using certain public or government assistance as a form of repayment.
Lastly, if you have already made payments to the original creditor, or another collection agency, offer to send proof of your payments, but only after you verify that the company is a legitimate collection agency. To do this, you can check with your states Attorney Generals office, or your states consumer protection agency.
If you need help, or an advocate to help you, you can call us at 877-969-3463, or log on to www.directcomplaint.com to fill out a Collections Complaint form in our Consumer Complaint Center, or send us an e-mail at www.support@directcomplaint.com
As a consumer, even when it comes to collections, the power is in your hands, use it.
Your Utility Bills
If you are on a payment plan with a utility company, and you have been paying the same amount for a long time, the chances are pretty good that you have a huge credit on your account. Check the bill, call the utility company, and get your money back. Who knows, you might even be able to stop making payments for a while, wouldn’t that be something?
