Dealing With Debt Collectors - Smart Strategies to Remember

When a debt has been left unpaid for a long time, creditors will usually pass on their duty to collect to an independent debt collection agency. However, there are debt collection agencies that violate consumer rights as stipulated in the Fair Debt Collection Practices Act. If you are in a similar situation, below are smart tips for you: 1. Try to negotiate with your original creditor. As much as possible, negotiate with your original creditor before your creditor assigns a debt collection agency. It will be more difficult to come up with a negotiation with a third-party debt collector since they make money through collection. 2.

Know your consumer rights. Read the Fair Debt Collection Practices Act and if you think your debt collector is guilty of a violation, you can file a complaint to the FTC (Federal Trade Commission) and the Attorney Generalâ&#x20AC;&#x2122;s Office in your State.

3. Face up to the challenges. The FDCPA states that a debt collector must first notify the borrower about the arrangement prior to debt collection. When you receive the notice, review the details of your debts to make sure that you are not being made to pay for more than the amount you owe. As a borrower, it is your right to request for verification of your debts by sending a credit dispute letter to the debt collection agency. Upon receiving your letter, the agency must cease all its attempts to collect debts until the investigation has been completed.