If a collections agent is on the line, your immediate reaction might be to ignore the phone calls. Seems easier to do things that way right? But if you owe debt to a creditor, collection agencies are allowed to contact credit bureaus and report the debt, file lawsuits against you, and should be taken very seriously. Rather than ignore the phone calls, take them head on with a methodical approach. Your first step is to determine why you are being called. Find out where the debt comes from and exactly how much you owe.
While you have your debt collector on the line, request their name, the title of the agency, the title of the creditor, the agency’s address, and their fax number. Keep in mind that you have the right to tell a debt collector that you want all future contact to be in writing over the phone, but follow up all requests you make with a written request.
One crucial thing to bear in mind is that if you request that the collection agent doesn’t contact you at all, the debt collection agency has the authority to call you one more time to inform you how it plans to take further action. If you have issues with personal privacy, you can also ask that you be the only person who can be contacted. A good idea is to start a file with details and dates of phone conversations and records of when you mail out letters.
If you do mail any letters or checks to the debt collection company do this by Certified Mail, Return Receipt Requested. This way you will be certain that the letter reached the collector because you will receive a signed receipt as proof. If you are able to negotiate a re-payment plan over the phone, request the terms of the plan be sent to you in writing. Any offer that a debt collector makes to remove or adjust credit history should also be documented.
Be certain that you are paying the right people. Payments are typically made to the debt collection company, not the creditor, unless you are otherwise told to do so. Look over the amount that they are asking you to pay carefully, and get an assessment of any interest, fees or charges that have been tacked on. By taking this methodical approach, you will feel more empowered and ready to tackle your financial issues.
Mallory Megan works for Rapid Recovery Solution and writes articles on national collection agencies. Unique version for reprint here: When A Debt Collector Is On The Phone, A Methodical Approach Is Best.