Top 5 Tips For Handling Collection Agencies

The following is my contribution to Darren Rowse’s Group Writing Project at ProBlogger.net.   http://www.problogger.net/archives/2007/05/07/top-5-group-writing-project

1.  Stay Off The Phone — Write a polite letter telling them there is not ever a good time for them to be calling you at any number.  Request they only contact you via mail.  Be sure to include permission for them to contact you by mail, if you cut off all contact their only recourse is to sue you in court.  Send the letter via certified mail, return receipt requested (CMRRR).

After they receive your notice, they are allowed to contact you by phone only one more time to inform you of having received your letter. 

Keep the little green card when you get it back from the post office.

2.  Know Your Rights — Familiarize yourself with Fair Debt Collection Practices Act.  You should also familiarize yourself the collection laws of your state. 

3.  Request Validation — That simply means sending a letter CMRRR asking them to prove you actually owe the debt and prove the amount of the debt.  They can’t just send you a single statement.  What they send you should be enough to convince a reasonably logical person you are the one who owes said amount.

4.  Check Your Credit Reports Consistently — While the collection agency (CA) is allowed to add information to your credit report, it must be accurate AND the original creditor should be showing as a charge-off with zero balance, or the original creditor should not be listed at all.  If the information on your report is inaccurate, dispute it with the credit bureau(s).

5.  Keep Records of All Contacts — Keep copies of all correspondence to and from the CA.  If they are calling you on the phone, or are leaving messages record it.  You should also take a picture of the Caller ID each time they call.  Keep a call log of each phone call including date, time, who they spoke with or if they left a message, and detailed notes of what was said.