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9 ways to deal with collection agencies: Something you may not have done

1. Can the collection agencies ring me late night?

No, Debt collectors cannot call you late night; it is prohibited under the Fair Credit Debt Collection Practices Act. The collection agencies can call you between 8:00 am to 9:00 pm only.

2. Can I force the debt collectors to accept my partial payments?

Usually the debt collectors do not accept a partial payment. They want you to send a lump sum payment. In order to extract the entire payment from you, they practice violent tactics to make you pay the amount in full. So, try to pay them as much as you can afford. If is not the full amount, they may not accept it. Yet, keep sending the amount every month, even if they continually send it back. This will keep you on the safer side. Who knows, in due course, you will find that your collector has allowed the partial payments.

3. Is my agreement enforceable against a new collection agency?

If your creditor gets associated with a new collection agency, discarding the old one, you may continually receive collection calls and letters. Even though you have an agreement regarding payment with your old collection agency, they may continually send you letters, or keep calling you. Your agreement will not be valid, in this case, till they accept it. However, do not forget to send them a copy of it. This will help you in settling a payment schedule with the new collection agency.

4. Is it legit, if debt collectors leave an answer on my answering machine?

The collection agencies can leave messages on your answering machine till you ask them to stop. But, the debt collectors cannot leave messages on your employer’s machine. Rather he can only leave his name and number. It is not legal, for the debt collectors to discuss about your debt with third parties.

5. Do you think, a verbal payment agreement with a collector is approved by law?

Not really. Always make an agreement in writing. As the collection agency has a high turn over; anytime, another debt collector may take over your account, or the agency can sell off your account to a third party. At times, the third party does not approve the agreement. However, you should get all the agreements in writing to protect yourself, in case you are sued.

6. What if the collection agencies continually harass me for a debt I do not owe? What should I do?

If the collection agencies keep harassing you for a false purpose, immediately send them a certified letter, asking them to verify thedebt. By verifying debt they mean, a copy of the documented proof that shows you owe a debt. You may also ask them to stop contacting you. According to the Fair Debt Collection Practices Act, they cannot harass you in this way.

7. Can a collector contact my employer and garnish my wages?

Basically, a collector cannot contact your employer for garnishing your wages without a judge’s signature. Moreover, your employer will not garnish your wage till he gets a court’s order.

8. Is the Fair Debt Collection Act applicable to major credit card banks?

The act is applied only to the collection attorneys and the professional debt collection companies. Your creditor is regulated by the state laws.

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