Collection agency contacts and tips to deal with them

Having a collection agency contact you is almost an inevitable fact of life. Even if you always pay your debts on time, there’s no guarantee someone else won’t steal your identity and litter your credit record with unpaid bills in your name. In this era of massive data breaches, the question isn’t how to avoid having to deal with a collection agency, it’s how to deal with them when they make an initial contact.

Collection agency do’s and don’ts

• Don’t panic when a collection agency contacts you. I know, this is easier said than done. But the fact is, if you let your emotions get in the way, you’ll make your situation worse and may wind up paying a bill you don’t owe.
• Collection agencies are governed by the Fair Credit Collection Practices Act. As such they are required to provide you with proof of the debt. If they contact you by phone, tell them to send you written proof of the debt. Under the law, they must do this within five days of contacting you.
• If you believe the debt isn’t yours, dispute it in writing. You can tell a collector on the phone that the debt isn’t yours, but you have no protection unless you put your claims in writing.
• Keep a log of all communications with the collector. The log should include the day and time of the call and the name of the person and agency contacting you.
• Collectors are not allowed to engage in harassing or deceptive behavior. If you find them doing this, tell them in writing to leave you alone. If they contact you after they’ve been notified, they’re breaking the law.

Collection agency workings

A collection agency is like any other business. They exist to make money. They buy or are assigned the debts they are collecting. They make money only when they collect, so they won’t harass you forever. Unfortunately, if you don’t pay a legitimate bill when contacted by a collection agency, that hurts your credit record. Therefore, you never want to ignore a collection agency contact. They may stop making contact, but the debt hasn’t gone away, it’s only further sullying your credit record.

Fake debt collectors

This is where things get really tricky. Is the collection agency that is contacting you legitimate or not? The surest way is to tell them to send you a written “validation notice.” According to the Federal Trade Commission, “The notice must include the amount of the debt, the name of the creditor you owe, and your rights under the federal Fair Debt Collection Practices Act.”