Thursday, August 9, 2012

smart tips for dealing with debt collectors

Dealing with debt collectors is a tedious task. It is something that most consumers dread like anything. Be it an unpaid credit card debt, past due student loan or medical debt, a call from a debt collector and you feel your world shaking beneath your feet. However giving them a royal ignore would not be a great idea!

Credit counselors, debt collectors and state regulators advice that instead of ignoring debt collectors' letters and phone calls, you should deal with it. Ignoring them can turn matters worse but if you can deal with it smartly, you can come out of the problem unscathed. Here are some tips you can consider while dealing with debt collectors:

Stay away from debt collection altogether: Instead of getting into the complexities of dealing with debt collectors, try out other options. The best would be to negotiate your debts with the original creditor. You can sort out a reasonable payment plan with the creditor before the account is sold to a third-party debt collector.

Know your rights well: There are several publications designed by the U.S. Federal Trade Commission (FTC) in order to educate consumers about their rights regarding the somekeyword.Under this act the consumers are allowed protection against the harassing phone calls, threats and abusive language of the debt collectors. The abusive activities are held as illegal and can be reported to the FTC and your state attorney general's office.

Correct the possible mistakes:Answer the letters or phone calls about debts or court notices about debt lawsuits properly. Ignoring them will increase your tension further. You can send written requests for verification within 30 days of being contacted by a debt collector. There can be negative markings on your credit report that can remain for a long time. This will negatively affect your ability to get a mortgage or other loans, car insurance or even jobs. You should therefore work to correct them so that your collectors do not get a chance to rebuke.

Get everything written down properly:If there are any agreements for making debt collection payments, it should be confirmed in writing. Get the document properly signed by the debt collector or his representative before you send any payments. This will avoid any misunderstanding regarding the payments made.

Find a debt collection lawyer: If you are served with a notice of a lawsuit, find a debt collection attorney to represent you in court. The lawyer specializing in consumer law violation can handle your case better. Your chance of having the lawsuit dismissed in court is greater if you show up in court with a representation.

Debt collectors have their ways and means of getting to you. But when there is a problem there is a solution tagged with it too. You have varied ways to deal with it. If you are prudent with your decisions, staying away from the clutches of the debt collectors is not at all a difficult task.

Author Bio: This article is contributed by BG, an IAPDA Certified Debt Arbitrator working with Oak View Law Group .

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