While credit collectors can be mean and use questionable tactics, they are good for one thing: being hounded by collectors makes you notice your debt problem and try and find a solution. As the consumer, you have rights when it comes to collectors. Put yourself in control of situation by dealing with collectors to eliminate debt and making sure the collectors know they can't bully or degrade you.
Step 1
Ask the collector to validate the debt when he calls. As the consumer, under the Fair Debt Collections Act, you are within your rights to ask for a written explanation of the debt, and it must be sent to you within 30 days of requesting it. Record the date and time you asked for it. This not only gives you more time to make a financial plan, but it proves that the collector legally has possession of the debt.
Step 2
Know the rules of debt collection. A collector cannot call you between the hours of 9 p.m. and 8 a.m. She cannot call you at work if you've asked her to stop. She cannot talk to anyone other than you about the debt. She cannot threaten you with arrest or jail time, or use obscene language. If any of these rules are broken, notify the collector that she is being reported to the Federal Trade Commission or your state's Attorney General's Office, and follow through on the report.
Step 3
Be calm when dealing with the collector. Don't lose your temper, and don't give in to bullying tactics. Gain the upper hand by insisting that you get all of the information about the debt and the collection agency from the collector, and then let him know that you'll call back once you've verified his position and the company.
Step 4
Work out a deal with the collector to pay back a portion of the money that you owe. Joanne S. Faulkner, a consumer law attorney based in New Haven, Conn, notes that all debt collectors are authorized to settle the debts for up to 50 percent or 60 percent less than the original debt. Let the collector know you want to work out a deal. If she refuses, hang up the phone and refuse to call back until she ets you know she is willing to work with you.
Step 5
Ask for the deal in writing when you get one. You could eliminate debt for pennies on the dollar, but make sure that it is done legally. You should get a letter that states the amount that you'll be settling for, and that once the amount is paid and receipt is given, the collector can no longer call.
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