How to contact creditorsHere are the do's and don'ts when contacting creditors.
- Why you're behind on payment
- Your current income & obligations
- Your plans to get current on your debts
- The exact amount you can pay monthly
You can prepare a summary of your conversation with the creditor and mail or fax it to his representative. If the creditor does not honor the agreement, contact the representative by mail and find out the reason and how you can rectify the situation. A copy of the agreement will help speed up the discussion.
How to contact collection agencies
Given below are the do's and don'ts when contacting collection agencies.
When contacting the collection agency, make sure that you refer to the debt by listing the account number and not as "my debt".
Finally, do not admit the debt if you don't owe it.
What if a creditor/CA contacts you?
At times a creditor or collection agency may contact you via phone or letter. Most creditors/CAs do not accept an amount lower than 30%-50% of the original balance. So if you get this kind of offer, it's better to accept it. Once you accept the offer, you'll need to use letters such as "Acceptance of Written Offer" and "Agreement to Settle a Debt".
Whether you contact the creditor/CA or they contact you, make sure you know your rights under the FDCPA. Go through our mailing guidelines and use the checklist to make sure you communicate with creditors or collection agencies correctly.
When can creditors contact your references?
Find out when your creditors can harass your references and how to deal with the situation.
What to do if your creditor files a lawsuit against you.
Find out what to do when your creditor files a lawsuit against you.
Judgment - How to deal with it.
Know how to deal with the situation when your creditor obtains a judgment against you.
Wage garnishment - How and when it can happen
Know how and when your wages can be garnished by the creditors