Within the first five days that the agency contacted you (whether by phone or mail), they must send you a debt validation notice, which is a letter letting you know you have the right to dispute the validity of the debt within 30 days. If you don’t dispute the debt within 30 days, the collector can assume it is valid. In order to dispute the debt, submit a written validation request. As soon as you do that, they cannot continue to try and collect the debt from you until the dispute is resolved.

Send the debt validation letter via certified mail with return receipt requested (so that you have proof that you sent it, and that it was received). See the sample letter below.

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If you have bad credit, you will have to deal with collection agencies sooner or later, and these companies often present the most persistent and unpleasant problem for those with bad credit. Collection agencies are basically companies that work on behalf of companies to try to recoup money that is owed.

If you owe your credit card company a payment that has not been made in some time, your credit card company will eventually ask a collection agency to speak with you. In many cases, collection agencies try to get money for their clients through phone calls. Some collection agencies are quite reasonable and will try to work with you. However, some will use threatening or harassing techniques – including verbal threats and daily phone calls – to try to get you to pay. To prevent the stress that collection agencies can cause, learn to deal with collection agencies.

You should always get the full name of whomever you speak with at a collection agency. You should try to be honest about your ability to repay and try to work out a payment schedule or payment options. If at any point you feel threatened or harassed, say so. Hang up the phone if the collection agent persists and contact the company who is trying to recoup money from you directly.

Note that the collection agency the company uses has been using is using abusive or upsetting language and ask to resolve the issue with someone at the company directly. Get the name of the collection agency and report them – and the agent you spoke with – to the Better Business Bureau. Refuse further calls from the collection agency and continue your communication with the creditor directly, noting each time the collection company contacts you with harassing or abusive calls.

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Collections agencies use fear in order to get debtors to pay their bills. One of the ways they intimidate people is by through the use of harassment.

Real World Example:

“Debt Collector: “Whatever way you want to handle this thing, you handle it, but as of today, I’m going to handle it my way.”
Consumer: “I’m going to make sure my rights are not violated.”
Debt Collector: “No, no, you going to get violated, sir.”
Debt collector: “What I’m going to do? I know where you’re at. I’m going to have my investigators come to your place of employment and drag you out, OK? Good day, big guy.”

Actual Legal Position:

Collections agencies are prohibited from harassing debtors. It is unlawful for bill collectors to bully their clients, or to use threatening or disparaging language in order collect an unsettled debt.

Almost all of us have to deal with collections agency at some point in life. unfortunately for so many fellow Americans, it is now. It is the worst of all times. You have huge debt and no savings to pay, still some one is keeping you on the toe to collect an over due credit card or mortgage payment. Believe me, Collection agents are the last people you want to deal with in these difficult times.

Hard fact is that you have to and you can. I am hoping that with the information contained in this article, you will be able to get through the stressful process and experience that leaves many feeling like they have been taken advantage of.

Over the period of next several posts I will show you some examples of extreme collection techniques and tactics employed by some agents. I also want to educate you that these methods are both unethical and unlawful and you are to keep you head up in all of this and you should not let anyone violate your rights.

My advice is to read these scenarios as they are real life examples of what happens to other people every day. These are the methods collection agencies use to aggressively pursue debtors. You owe money, not your life and peace of mind to bank. Resist is the word!

First article of this series will be published tomorrow. Please subscribe to our RSS Feed so that you can get these articles delivered to  your email inbox.