When dealing with a collection agency, you should always make sure that they provide you with proof that you indeed owe the debt
So, You’ve Been Contacted By A Collection Agency, What Should You Do?
It’s a sad state of affairs, but the fact is that the recent downturn in the economy has caused many otherwise responsible people to fall behind in their financial obligations. More and more people who owe money are being contacted by collection agencies than ever before, and while most of the time the process goes smoothly, there are some horror stories about collection agencies that have recently come to light.
A collection agency is basically a company that agrees to purchase debts at a low cost from other companies. Companies sell these debts (called charge offs) because they realize that the longer a debt goes unpaid, the odds that they’ll ever get paid go much lower. It’s often better for them in the long run to sell the debt, get some up-front cash to recoup some of their losses and hand the headache of collection to someone else.
More often than not, the first contact a person will have with a collection agency is in the form of a form letter. These initial letters will often have the tone of a “friendly reminder.” If the first round of letters doesn’t generate a response, the next round may be more harsh in their tone, saying that action on your part must be taken by a certain date or else – the “or else” meaning that they’ll be sending more letters.
If all of the mailings go unanswered, the agency will then resort to contacting the debtor by phone.
Dealing with a collection agent over the phone can be an extremely unpleasant experience depending on the firm and the particular agent making the call. You have to understand that most collection agents work for low wages and only make their money in the form of bonuses or commissions based off the amount of money they’re able to bring in, which is why they push so hard for payment.
Keep in mind that, while some agents do resort to intimidation tactics, a collection agency cannot legally seize your bank account, your personal belongings, your house, your paycheck or get you fired from your job despite what they may say. Many agents are like car salesmen who depend on making the sale to put food on the table. Lawsuits are also extremely rare because it’s better – and more profitable – to the collection agency to get paid without having to go through the expense of a lawsuit.
When dealing with a collection agency, you should always make sure that they provide you with proof that you indeed owe the debt. They have to give you this information by law, and since no one is above making mistakes, it’s always in your best interest to ask for the proper documentation.
Also, it’s always better for you if you contact the collection agency right after getting your first letter. Try to negotiate to pay the debt all at once or set up a payment plan that you can afford. While there are many things that a collection agency can’t do, they can report you to credit bureaus like Equifax, which in turn can damage your credit for years to come.
Remember too that when dealing with a collection agent on the phone, it’s important to always remain calm and to not let yourself be intimidated by scare tactics. They can’t refuse you if you’re willing to pay even if it’s on your own terms.
If you’d like to know more about debt or want an easy way to pay off your debts, log on to Pay Star’s website at www.paystarintl.com.
Additional Resources
Paystar International :: Home Page
Paystar International :: Article on Betaflow
Paystar International :: Listed on Review-inc.com
Paystar International :: Information on Incprofile.com
Paystar International :: Article on 800review.com
Paystar International :: Article on 4WorkLife