Business Description

For many people who are in debt, dealing with a collection agency can become a daily dreaded dependency, differentiated by standard telemarketers in that the collection agency is calling because of legitimate debt owed. While no-one likes talking with a collection agency, it is important to keep in mind that they are calling for a reason, namely that you have not made good on a financial promise of some sort.

With that said, this does not give the collection agency the right to harass or make false statements to a person. Often, this has been something that has been violated, but has been improving over time. Ultimately, it is not uncommon for a collection agency to lie or tell a selective truth to get a payment, which often serves to extend the Statute of Limitations on Debt. However, the Fair Debt Collection Practices Act puts a great deal of limitations on what a debt recovery agent can say, as well as providing fines for agents that break these rules. Further, in some cases these violations may open the agency up to a lawsuit, so knowing and understanding ones rights is very important when dealing with a collection agency.

One of the main restrictions provided by the Fair Debt Collection Practices Act deals with preventing harassment. Harassment can refer to a number of things. This includes threats of physical violence or harm and using profanities when dealing with the customer. However, harassment can also involve making multiple phone calls to a person.

In addition to preventing harassment, the FDCPA also prevents collection agencies from using false statements to debtors. This can include things like misrepresenting the papers they sent as legal court documents or threatening arrest for non-payment. These sorts of false statements are illigal and can result in fines for the agency in question.

When dealing with collection agencies, it is very important to keep in mind that while they may in fact be able to act on some of the threats they present, it is generally not something that can happen over night. In fact, with most types of debt, excluding student loans and government debt, they generally must take you to court first, prior to any sort of action, such as garnished wages.

Taking the Time to Talk

While there are a lot of things that collection agencies are prohibited to do and dealing with them can be inconvenient, it is important to keep in mind that they are not just calling for no-reason. Instead, they are calling because you defaulted on a promised debt and they are trying to protect their assets and preform debt recovery.

Ultimately, it is in their best interests, and often yours, to talk with the agency to negotiate a deal. Depending on the type of debt involved, it is not uncommon for the agency to work out a very attractive deal, greatly reducing the amount of debt owed.

A good starting point is a quarter of what you owe. From there, you can further negotiate with the collection agency, keeping in mind that many get paid a percent of what is recovered, so their goal is to get as much money from you as possible. If after negotiating with the collection agency, you are unable to reach an agreement, do not be afraid to tell them you will call them back. It is also very important to make sure that you do not agree to something that you can not afford and that you get something in writing before making any payment to them.

It is also a good idea to request that they remove any negative marks from your credit report that are a result of the debt collection agency or the debt itself.

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