Dealing With Collection Agencies

After working in the collection industry for a while and seeing how several companies run I have decided to write an article about how to deal with a collection agency.

Some collection agencies are good and follow the laws and the proper procedures when it comes to collecting a debt. However, there are plenty of them that do not follow the laws and train their collectors on how to use intimidating tactics when it comes to collecting on accounts.

I have seen collection trainers tell you that you can recommend a lawsuit simply because you are not stating that you will sue. That is still breaking the FDCPA because if you say this to the "least sophisticated consumer" it is implying that a lawsuit will happen. Here are the following tips for dealing with a collection agency:

1. Always get validation of the debt. They have to send this out to you by law. If they refuse to send it to you tell them you are reporting them for violation of the FDCPA.

2. Don't let them pressure you into a payment plan that you simply cannot afford. If they tell you they are going to take you to court tell them that you expect to be served with papers by the end of the day and if you are not you are going to take them to court for violation of the FDCPA. Collection agencies are happy to get any type of payment so for the most part if you are making payments to them they won't try to take you to court.

3. It is very costly and time consuming for a collection agency to take you to court. It is just not worth it and some of the times they can't even get proper proof of the debt.

4. Don't give any hardship story to the collector. Plain and simple they do not care. If they know you are vulnerable they will use that against you as well. Most debt collectors have thick skin and just care about getting their bonus check at the end of the month.

5. Speak firmly but do not yell at a collector. Yelling at a collector will get you nowhere. If you speak in a firm tone to a collector that is being aggressive and if they know you will not back down and give in to them then they are more likely to work with you. They will be more open to giving you lower payment plans.

6. If a collection agency breaks any FDCPA laws do not pay them. Instead contact the FTC and report them. You may want to contact an attorney to discuss a potential lawsuit against the collection agency.

Remember, I am not an attorney nor do I engage in giving legal advice. Please if you need some legal advice, contact an attorney.


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