Proper way to deal with collection agency on phone

Make sure that your state allows for recorded phone conversations without consent before your proceed.

Go http://www.debtconsolidationcare.com/diy/ to get a cease and desist letter.

:D Dealing with a dirtbag(oops, a collection agency). Get a validation letter & a cease & desist letter together. Send us mail certified return receipt. As Polly mentioned make sure your state allows recording before you do that so you don't multiply your problems. Another good idea is to start a phone log(Time,date,frequency,and what was said on phone). It is not as good as a recording but still nice to take in front of judge if you can't record them. Make sure to go to http://www.ftc.gov/ and read up on the fdcpa laws.

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I wish people realized that the primary weapon of all debt collectors is the telephone.

If every debtor in the world stop talking to collection agencies on the telephone, the vast majority of the would go out of business very quickly.

The cheapest way to collect debts is to call debtors on the phone and harass and scare them into voluntarily paying them. It is so successful that it is now one of the fastest growing industries.

The easiest thing for you to do is simply hangup the phone when a debt collector calls you. That's what they hate the most because they don't get any information from you (to use against you later on), and more importantly, they don't get any money from you.

You can also send them a cease and desist letter to get them to stop calling.

irislyne -

Not trying to start an argument here, but I have to take issue with your advice to simply hang up on collection calls.

Not only can this lead to further collection activity, it can also lead to the collection company attempting to contact you in other ways, such as calling you at work (embarrassing, and a potential threat to your job), or on your cell phone (where you have to pay for the incoming call). On top of that, if you simply hang up, as you are recommending, the collector will have no choice but to assume you don't want to pay and proceed with reporting your delinquent account to the credit bureaus, which further damages your credit, making it difficult for you to obtain credit in the future....all because you didn't pick up the phone.

For best results in the long run, you should answer the calls, and attempt to make a payment arrangment that you can afford with the collection agency.

If you are in doubt that the debt is valid, write a debt validation letter to the collection agency, requesting they valdiate the debt for you. If you have a heavy debt load and fear answering the phone due to multiple collection calls, then perhaps you should consider debt consolidation or settlement with a credit counseling agency.

If the collection agency is already calling you on the phone, your credit is probably already pretty bad, most likely that collection will already be listed on your credit report. As far as them calling you at work or on your cell phone, simply send them a letter by certified mail demanding that they cease and desist from any communication with you, otherwise they will be violating the Fair Debt Collection Practices Act. It has worked for me every time.

While sending a cease and desist letter may get them to stop calling, it will not stop the collection agency from proceeding with further collection activity.

Just my personal opinion, but I don't think this is the best way to deal with collection agencies.

I agree with irislyne. In almost all cases after receving a cease-comm, the CA will simply return the file to the original creditor as "unable to collect". It's theoretically possible for them to take other courses of action, but it's quite rare for them to do so. Irislyne is also right that if a CA is haranguing you, your credit is already in bad shape, so "saving" it is not a primary consideration -- not to mention which, if you actually work with the CA, you could even end up making your credit *worse*. For example, if you have a $5,000 debt that's six years old and you make, say, a $200 payment on it, it becomes a $4,800 debt that's one month old but with all the delinquency information still intact, which lowers your credit score.

I tend to agree more with Bud Hibbs. You should rarely, if ever, work with a collection agency; there's simply no benefit to doing so. It's far more preferable to work with the original creditor.

:shock: I have noticed in my previous post,I made a slight error. I told person to send a cease and desist letter which is bad news in certain situations.Example if alleged debt is still in statute of limitations for legal action.

If you were to send a full cease and desist letter,this by its nature cuts off all communication with collector.In doing this,you may force there hand.They may feel sueing is only option.

A better way to word letter is to place phrase is letter saying you do not allow calls at home or work,but would allow anything by us mail. It gives you option to keep a close eye on them for violations and it gives them a way to keep in touch with you.

I am one of the people that really has no use for collectors,but if they purchased a valid collectable debt,you may be obligated to work with them. Just ensure youself that it is on your terms!

You can also take the side door and just get an unlisted number.

Jedi Mistress Ari, your idea is a very good one as long as op understands not to put number on any records that are in public view. Skip tracing is a very important part of collecting and they have some that are very good at their jobs!

My husband puts our old disconnected phone number on applications in order to avoid the telemarketers and such. Our phone number is unlisted, only family, friends, and employers have it. Once someone changes their number to one that is unlisted, all telephone contact between creditors and debtors comes to a halt. In these cases, there is no way to skiptrace for an unlisted number, and what friend or relative in their right mind would hand out a friend's phone number to a stranger like a bank lollipop.

Ari, I understand your point completely. Just wanted poster to understand that so they would avoid that mistake if they went to unlisted number.

I agree with SUEbee,hey that rhymes!! You should make an attempt, keep track of day,time and person, to deal with your debt. If the oc has sold it, the CA won't give up, until they get no response, then they can issue a judgement, if it's still in the SOL. I have been dealing with a company for a year,a CA, who bought my account, won't validate, and just pass it around to their other agencies. I have spoken to many of them, they refuse to work with me, or validate, and I have keep notes of everything said by them and myself. I ignored a CA once years ago, and it got me a judgement!!..Karen

That's good of you Cajun!

This is the vergiage I use in my debt validation letters. If they call, then it's a violation of the fdcpa which will be a chip in my pocket to use against them. Why not just use this when sending a debt validation letter.

verbiage.. it's early for me..

That's essentially how I do it. No verbal communication and no contact with anyone other than me. Force them to put their claim in writing. If you never get a response for a DV, or they call after they've received a CD letter outlining your position, then it's on them, not you.