![]() However, if you make a payment, it will reset the clock. By making even a small payment on the debt, you acknowledge that it’s yours, and that can be a big mistake.įor example, if the debt is past the statute of limitations, you are no longer legally obligated to pay it. Politely ask for information about the debt, then tell them you’ll call back later to discuss it. However, before making a payment, you should carefully consider all of your options. ![]() When a debt collector contacts you, they will try to pressure you into paying them. What should I do when a debt collector contacts me? If they can’t provide this information, they cannot legally pursue payment. The debt collector must provide you with the name and address of the original creditor, along with how much money you owe. You also have the right to request verification of the debt. In addition, you are entitled to request the name and address of the original creditor. They are required to notify you in writing within five days of their first contact with you that you have the right to dispute the debt. Withholding Information About a Debtĭebt collectors cannot legally withhold information from you about a debt. Knowing how to deal with debt collectors during the debt collection process can help you spot predatory practices and make the whole process much smoother for you. The Fair Debt Collection Practices Act (FDCPA) prevents the use of abusive or deceptive tactics to collect any debt, whether you owe it or not. There are strict regulations about what a debt collector can and cannot do in the United States. Once you have an agreement in writing, you can make a payment. ![]() If you choose to negotiate with a debt collector on your own, you must get it in writing. However, if your account has been sent to collections, you’re already looking at negative marks on your credit report.ĭebt collectors are notorious for taking advantage of unwary consumers who make verbal agreements over the telephone. Third-party debt collectors may or may not be able to negotiate. Others will contract a debt collector to act on their behalf, and they only get paid if you pay up. Third-Party Debt CollectorsĪfter 90 to 180 days, many companies will sell your debt to a third-party debt collector for pennies on the dollar. The internal collection department is still your original creditor, though you will be speaking with agents specifically trained in debt collection versus customer support.ĭepending on the debt collector, you may be able to negotiate a flexible payment plan and prevent harmful information from being reported to the credit bureaus. In most cases, you deal with the original lender or credit card issuer’s internal collection departments for the first 90 to 180 days that your debt is delinquent. There are two main types of debt collectors: third-party debt collectors and internal collection departments.
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