Debt Collection Agencies

These organizations are in the business of debt collection. Dealing with them can be stressful and annoying, to say the least. However, you can be in control if you know your rights and how to assert yourself.

Collection agencies are governed by the FDCPA and the FCRA as well as local laws. It is advised you read up on those. One thing to keep in mind - you should never talk to any representative of a collection agency over the phone. All correspondence should be in written form so you have proof of what was said.

If you find yourself getting calls from a collection agency at home or at work, you can stop them by sending a cease and desist letter via certified return receipt mail. This will inform them you are executing your lawful rights and they are no longer allowed to communicate with you via any method at any time other than in written form. If they call you again, you can remind them that they are now violating the law and that you can sue them for damages if you choose to do so.

Here are the steps to take when receiving a phone call. Do not spend any time on the phone with them or let them start a conversation:

1. Get the name and mailing address of the company and the name of the representative. Write down the date and time your received the call.

2. If it is an agency you do not know, tell them to send you a letter and quit calling you. Once you get their letter, send them a cease and desist notice.

3. If it is from a collection agency you have already sent a cease and desist to, remind them any further calls will be considered harassment and say good bye.

When it comes to debt collection, the burden of proof is on the collection agency, not you. If you send them a validation of debt letter in the proper format, they must cease reporting and attempt collection on the item until they can prove it is yours.

If the disputed item recently went to the collection agency for collection, they may be working with the original creditor. If not, chances are they just bought the paper and can't validate the debt. To intimidate you, they may try to send you computer generated printouts or a print out of statements and other garbage which proves nothing. They try this in hopes you are not too smart.

At times you may encounter a collection agency that threatens to report the debt on your credit report. They must send you a written notice advising you of this first. If they do not, they are violating the law. Additionally, they are not allowed to threaten you with bad credit in any way. Saying anything aside from the item will be reported which could impact your credit is outside of allowable conversation. This is why it is best to never talk on the phone. Anything written by them can be proven in a court of law.

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