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Mistakes to Avoid when Dealing with a Debt Collector

Have you been harassed by a debt collection agency? The mistake might be yours. There are ways in which you can avoid being a victim of debt collectors who are willing to go to any length to recover their client’s money.

Debt collector

By being harsh on you, a debt collector is just doing his/her job. They are known to have an aggressive attitude towards people who delay or refuse repayment. This sounds quite fair. But there are times when a debt collector may take you for granted and treat you in an unscrupulous way. This is why you should avoid making some common mistakes that debtors make.

Avoid the following mistakes when dealing with a debt collector.

1. Engaging the debt collector on the phone

To save time and effort, the debt collector hired by your creditor might call you on your phone to have a dialogue. Do no absolutely engage them on the phone. You can ask them for a meeting or provide your email address for further communication. Debt collection agencies are clever when it comes to collecting evidence that can frame a debtor as the culprit. They might find use the recorded phone call against you in court.

2. Sharing personal information

Sharing personal information with a customer care executive via phone is never a good idea. The executives at your creditor’s debt collection agency will try to contact you via phone/email/in-person to retrieve your personal information. This does not necessarily mean they will use it to steal your identity but they will surely keep it as collateral to attack you when your back is against the wall. 

3. Failing to get agreements in writing

Even if the debt collector agency is willing to settle for an amount lower than the principal amount(that you owe your creditor), ask the debt collector to produce everything in writing. Do not accept a digital copy of the agreement. Debt collectors are notorious and will try to come back at you to recover more money.

Secondly, even if you build a rapport with the debt collector, a legal written agreement is a must for whatever transactions you do with them. You can’t rely on their word. What if the representative you spoke to quits his job or joins another company. You don’t want to do the dirty work of tracking them to confront in a hostile manner.

4. Not knowing about the statute of limitations

Every state in the United States has its own statute of limitations– as far as debt repayment is concerned. If your creditor fails to recover his money within the given time frame, you can get away without paying the debt. Basically, due to negligence or inefficiency of the debt collection agency, your debt can be legally waived off. So, do not respond to the debt collectors threats if the time limit of repayment has already passed.

Summary

Realize that the debt collection company buys the debt owed by you to your creditor by paying a certain percentage of the principal amount in advance. So, you no longer have to worry about your creditor. But the agency will put pressure on you to pay the full amount that you owe. Do not fall for their tricks. Always negotiate and settle for an amount that you find reasonable.

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