If you’re struggling with debt, you may eventually deal with a collections agent. This can be a scary experience, but don’t worry – we’re here to help!
In this article, we will walk you through the steps you need to take to deal with a collections agent. We’ll provide information on how to protect your rights, as well as advice on how to negotiate or settle the debt. Don’t let debt collectors scare you – read our tips and take action today!
Ignoring Them Solves Nothing
If you’re dealing with a collections agent, you first need to understand that ignoring them will not make the problem go away. In fact, it will only make things worse.
When you ignore a debt collector, they may eventually resort to more aggressive methods to get your attention. This could include calling your friends or family members, showing up at your work, or even taking legal action against you.
Don’t Admit to the Debt
One of the most important things to remember when dealing with a collections agent is that you should never admit to the debt. Even if you know you owe the money, verbally acknowledging it could be used against you later.
If you do end up admitting to the debt, be sure to get the conversation in writing. This way, you will have evidence that you did not verbally agree to pay the debt.
Gather Information on the Debt
Before taking further action, you must gather information on the debt. This includes the amount of money you owe and the name of the collection agency.
You should also find out if the debt is within the statute of limitations. This is the amount of time that a collection agency has to sue you for the debt. Once this period has expired, they can no longer take legal action against you.
Don’t Hand Over Personal Information
During negotiation, it’s important to remember that you have rights. One of those rights is the right to privacy. You should never give a collections agent your personal information over the phone.
Tell them that you will only provide it in writing if they ask for your Social Security number, bank account number, or credit card number. This will help to protect you from identity theft and other forms of fraud. It’s also important to remember that you have the right to dispute the debt. You can request proof in writing if you don’t believe you owe the money.
For more information on how to stop debt collector calls, head to Freedom Debt Relief.
Request a Verification Letter
If you’re unsure whether you owe the debt, you can request a verification letter from the collections agency. This letter will state the amount of money that you owe, as well as the name of the creditor.
It’s important to note that this letter is not the same as a payment agreement. Once you receive the verification letter, you will still need to negotiate with the collections agency to agree on how the debt will be paid.
Attempt to Settle or Negotiate the Debt
Once you have all the information you need, it’s time to start negotiating with the collections agency. The goal is to agree on a payment plan or settlement amount you can afford.
If you can reach an agreement, get it in writing. This way, you will have evidence of the agreement if the collection agency tries to take further action against you.
Take it to Court if Necessary
If the above ways of how to deal with collections agents are yielding no results, your last resort is to take them to court. But, before you do this, you must understand the statute of limitations in your state and how much evidence you need for your case.
Filing a lawsuit against a collections agency can be long and complicated. If you’re unsure whether you have a strong case, it’s best to consult with an attorney.
Dealing with collections agents can be a stressful and daunting task. But, by following the above tips, you can protect your rights and come to a resolution that works for both parties.
