go head to head with debt collectors and come out smiling

Go Head to Head With Debt Collectors and Come Out Smiling

“It is the debtor that is ruined by hard times.”

~Rutherford B. Hayes

Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com

Debt is one of the most stressful situations anyone can face. Dealing with collection agencies or debt collectors is even more unpleasant.

There are many things you can do to reduce your debt and stop the daily harassment. It’s important to address your debt and debt collectors directly.

There is actually very little a debt collector can do if the debt is unsecured. Knowing this puts you in a powerful position.


Within 5 days of the initial contact with you, the collection

agency is required, in writing, to provide information regarding the debt. This includes the nature of the debt and your right to dispute it.

You have 30-days to dispute the debt, in writing. No further collection attempts or communication may occur until the debt has been verified in writing.

Knowing your rights is the best way to fight back against debt collectors. The Consumer Credit Protection Act (CCPA) contains the rules that you’ll find most useful. This act only applies to secondary parties, such as a collection agency, and not the original creditor.

Your Rights and the Law


• It’s illegal for a collection agency to threaten you

with arrest for your debt.

• Collection agencies can only make phone calls between the hours of 8 a.m. and 9 p.m. in your time zone.

• The collection agency isn’t allowed to use inappropriate language or unreasonable threats.

Guidelines of the Fair Debt Collection Practices Act (FDCPA)


• It’s not permissible for a collection agency to contact

your friends, family, coworkers, employer, or neighbors to discuss your debt. They may contact your employer to verify your employment, but that’s all they may inquire about.

• No one from a collection agency can pretend to be a court employee or an attorney.

Guidelines of the Fair Debt Collection Practices Act (FDCPA)


“When a man is in love or in debt, someone else has the advantage.”

~Bill Balance


Your Options if Debt Collectors are Breaking the Law

• Make note of the date, time, and name of the debt collector.

• Record the nature of the call.• Have a third party witness.

Document illegal communication

or behavior

• The FTC regulates collection activities.• You can file your complaint online.

File a complaint with the FTC

(Federal Trade Commission)

• Find an agency that regulates debt collection.

• The state government website can help.

Send a copy of the complaint to

a state level agency


Your Options if Debt Collectors are Breaking the Law

• Original creditors sometimes cancel debt due to liability concerns.

• The collection agency might also toss the debt back to the original creditor.

Share complaint with the

creditor and the collection agency

• Any violation of the FDCPA results in a $1,000 fine.

• Take the case to small court, or choose regular court if you can afford counsel.

Sue the collection agency


The debt collector’s only concern is quickly

collecting as much as possible.

The collection agency wants to minimize its costs. Collection agencies would rather get a reasonable amount today than the full amount in 6 years.

Know your financial situation. If you don’t have the financial resources to make a lump sum payment or keep up with a payment plan, there’s little point in attempting to negotiate.

Things to Consider When Negotiating with Debt

Collectors


Eliminate your debt with a one-time lump settlement.

Every collection agency will likely accept a reduced amount as payment in full. Some agencies will accept 50%.

Remember your credit report. Your credit score will take a hit if your debt has reached the collections phase. If you’re willing to pay something to settle your debt, the collection agency and the original creditor may clean up your credit issue.

Set up a payment plan. If you decide to go this route, understand that you’ll likely be on the hook for the full amount.

Options for Negotiating Your Debt


Talking about debt collectors...

“One guy called me everyday last week. I said, 'Look, every month I put everyone I owe

into a hat, I pick three names, I pay those people. And if you call me one more time I'm

taking you out of the hat.'

They all want to be in the hat.”

~Margaret Smith, Comedian


Get a second

job

Ask family & friends

Cut expense

s

Sell some assets

Finding the Money to Satisfy Your Debt


Debt Positive

Future

Understand your missteps

Create a budget

Increase your income

Pay your bills on time

Unpaid bills

Steps to Creating a Positive Financial Future


“Debt is like any other trap, easy enough to get into, but hard enough to get out of.”

~Henry Wheeler Shaw


Get a new copy of your credit report to verify that the unverified items have been removed.

Dispute negative information. If they fail to verify the information on time (30 days) or don’t have the supporting information, `the item must be removed

from your credit report.

Get copies of your credit reports from all three major credit-reporting agencies.

Removing Negative Credit Information


• Simply paying your bills on time has a huge

positive effect on your credit score.

Make your payments on time.

• While having a loan doesn’t boost your credit, paying off a loan does. Put down cash collateral to get a loan, then use that loan amount to apply for a loan elsewhere.

Take out a loan.

• Credit cards have the potential to be positive or negative, depending on your ability to use them responsibly.

Get a credit card and be responsible.

Adding Positive Information to Your Credit Report


• When you apply for credit, your potential creditor

will do a credit check. Credit checks lower your credit score.

Avoid applying for too much credit.

• If you’re using more than 30% of your available credit, it’s hurting your credit score.

Keep your credit card balances low.

• If you know someone with stellar credit, ask to be listed on their account. You’ll be associated with their credit report.

Ask to become an authorized user on another’s account.

Adding Positive Information to Your Credit Report


“Creditors have better memories than debtors.”

~Benjamin Franklin


Reminders for Your Peace of Mind

You’re not going to prison just because

you’re unable to pay your debts.

You can easily stop all

communications from debt

collectors by making the

request in writing.

Your wages can be garnished up to

25%, but the creditor will have to win a lawsuit

first.


Debt collectors are a tiresome burden and they can

really detract from the quality of your life!

If you have significant debts, bankruptcy might be another option to consider. It would be worth contacting an attorney to explore the possibility of eliminating much of your debt.

For your own peace of mind and a secure financial future, it’s important to address your debts directly and start working on solutions to both eliminate your debt and boost your credit score.

Conclusion


“Some debts are fun when you are acquiring them,

but none are fun when you set about retiring them.”

~Ogden Nash


Get Help Addressing Your Debts

Dealing with collection agencies or debt collectors is unpleasant. There are many things you can do to reduce your debt and stop the daily harassment.

Don’t wait. Start now.

Get started today by downloading this helpful worksheet.


http://wp.me/a2TgQz-OR

go head to head with debt collectors and come out smiling

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