collection agency / Dealing With Collection Agencies

Dealing With Collection Agencies


1 Methods: Sample Debt Validation Letter

Whether for health reasons, unemployment, or unexpected financial disasters, you may need to deal with a collection agency someday. This article will not teach you to avoid paying your debts; but will help you handle phone calls in a way that you and the billing agent are satisfied with.



Steps
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1
Prepare a complete script, and keep a copy close to each phone in the house. This should begin as follows: "Before anything else, I mean that I am" extremely "motivated to find a solution with you. However, if our relationship becomes aggressive, threatening, rude, or disrespectful, I will disconnect and not All right? " If they begin to argue ("Lord, this is not the way we work ..."), listen to what they have to say, and re-read your script, calmly and modulated, until they agree to your terms.
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2
Get the information from them. The next thing to read in your script should be, "Now, before we get started, I need your name, company name, and phone number." Many agents will be surprised by its calm and direct approach. They may say that you are not cooperating or something. Explain that you are cooperating, and expect them to do the same. Write this information along with the date and time of the call. Put everything in a file, and save it, as this process can take a long time.
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3
Record the call. You have to say that you are doing this. They will usually tell you that they are doing the same. This notice is generally considered to be your acceptance of the recording. Check local laws before recording.
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4
Ask for evidence of your debt. Within the first five days that the agency contacted you (either by phone or mail), they should send a debt validation letter, which allows you to dispute the validity of the debt within 30 days . If you do not do so on time, the agent can assume that it is valid. To discuss, send a letter requesting the validation. Once you do this, they can not keep trying to receive before this is resolved.
Send the debt validation letter with registration and proof of receipt (so that you have proof of the sending, and that it was received). See an example below.
Whatever you do, make sure you do not take on the debt. Repeat: "I want to see evidence of the debts to which this letter refers. I do not recognize them." This is a precaution against improper collection - how many agents try to charge you for debts you do not have.
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Validate the debt. In response to your letter of validation, the collection agency should send the following:
Proof that she is the owner, or has been charged with the debt by the original creditor.
A copy of the original legal agreement you have signed with the lender.
Documentation of the original creditor that proves that it should.
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6
Review the documentation. If they do not provide sufficient evidence, write another letter citing the violation of the law against undue collection, and requiring them to stop receiving attempts and remove their name from credit protection agencies, or seek the legal means available. If they do not stop, go to the special small claims court after two weeks. If they have sent you proper proofs, check the terms of the agreement to see if you are still responsible for the payment. Usually they define the amount of time they can spend without paying the debt before the bill collector loses the right to receive. Depending on the debt there is a deadline, so you need to check the law, or consult a lawyer. If you are no longer responsible for the debt, send a notice explaining this, and requiring them to stop harassing you, or take legal action. If you really owe, go to the next step.
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7
Have an amount already set in your mind that knows how to pay, whether in installments or not, even if it is small. They should ask for more. Be firm and explain that this is what you have, and you can not afford to pay more. Always keep the attitude of wanting to solve the problem, but that is the most you can afford. Explain that if you accept this offer, you will be willing to rediscuit in 6 months the amount to see if it can increase. Do not agree to automatic debit.
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8
Make sure they stop counting interest on your debt. Tell them to stop calling unless it is to return a call from you.
9
When they agree to your payment, ask them to sign and send you a note with your balance, and the terms of the agreement, which you must sign and return. Be sure to read the note carefully before signing, as this will be a legally binding contract.
Example of Debt Validation Letter
Date


Your name, Address, City, State and Zip Code.



Name of Collection Agency, Address, City, State, Zip Code.


To the Collection Agency:


I am writing this in response to the <link / letter> received on the day you sent them. In accordance with the rights guaranteed by law, I ask you to provide validation of this debt. Note that this is not a refusal to pay, but a request to your offices to send evidence that I have a legal obligation to pay them.


I have already notified that, if the above request is not met, I will immediately seek legal action.


Regards,Your name




Tips
Collection agencies will act more rationally when they think they will receive something. So if the debt is valid, start saying you just received a good amount of money, and you want to pay off the debt. Then cite other debts, bigger and more important, that you also have (rent, electricity bill, etc.) and how much to take away. After that, it may require education and some concessions.
Record the call: If they are aggressive even in the face of their good intention to pay, you can use this against them in the future.
Write everything - the date and time of the call, the agent's data, what they want, and their offer.
Sometimes it is simply impossible to win, they will not accept rational arguments, or understand that they are not legally obligated to pay. In this case, make a dossier stating that they have not accepted a bona fide agreement. When they sue you and send your name to credit bureaus, send copies of that dossier to them, showing that they were not interested in receiving, and asking for the removal of your name. * Must remain calm and rational. Cries, swearing, and other verbal tactics ruin the image you are trying to pass.
If they talk to you abusively, give them a warning, as mentioned in the opening phrase. The second time ask to speak to the supervisor. When talking to him, start from scratch.
Be careful when making any payment if the debt is past due, or is near. This may open up to cover the full amount, even if the agent has said that you need to pay only a small amount so they leave you alone.
Often agent names are not real. One way to check is to send a registered letter with receipt to that particular person. If they sign, they must be the person (otherwise it becomes fraud).
Notices
Remember, your goal is to have, and keep, control of the conversation, so that everyone gets what they want. Lose your head, panic, or grumble, is to hand control over them.
Necessary materials
A roadmap, as described in step one.
Paper and pen near the phone (or pocket, in case of cell phone).
A phone with a recording device.