Tips for Dealing Effectively With a Collection Agency

When dealing with a collection agency, there are many things to think about and remember. 

However, there is a way to deal with them effectively so that you will increase your chances of reducing your debt and keeping this collection off of your credit report.

SCREEN YOUR CALLS:  Whether you use a caller ID system or a simple answering machine, screen all of your calls so that you don’t end up talking to a collection agency when it is not a good time for you. 

For example, there may be times when you are not in the mood to stay calm on the phone or you are distracted by other things going on in your life and can’t effectively deal with the collection agency at that point.  Check the caller ID and then don’t answer the phone.

However, don’t let this trick allow you to mentally avoid the collection agency either.  Just because you can avoid their calls doesn’t mean that you can avoid the debt.

GET A NAME:  Before starting a phone conversation with anyone from a collection agency, ask them for their full name, their employer’s company name, their supervisor’s name, and their mailing address and phone number. 

Obtain this information up front in the conversation and write it down.  If someone is hesitant to provide this information, then hang up and ask that a different collection agent calls you.

Do not give out any personal information to them as it may be a scam.

GET IT IN WRITING:  Everything you agree to with a collection agency is a legal contract.  However, if you don’t get it in writing, it never happened.

Before making any payments or agreeing to any terms, ask that they email or  mail you a written copy of the agreement for you to review.  Often you will find things that you may not have been aware of.

VERIFY THAT IT IS YOUR DEBT:

 While this may sound obvious, make sure that you really owe the debt before paying it.  Collection agencies are able to mess up just like any other company, and might have accidentally linked you to a delinquent account.

 Obtain the information about your debt in writing, including the current amount, the original amount, the original company, and the original due date.  If it is not your debt, you have 30 days to dispute it.

BRINGING IN YOUR LAWYER:

 While it might be tempting to defer all collection calls to your lawyer, think twice before stating that a collection agent must speak to your lawyer.  Once you have stated that the collection agency must speak to your lawyer, they can no longer speak with you about the collection – only with your lawyer.  Don’t make this treat idly – lawyers can get very expensive!