You don't have to sit back helplessly while a debt collection agency harasses and threatens you. Some collection agencies do whatever it takes to collect a debt, which can include constant phone calls at your home or office. However, laws are in place to help you deal with collectors and stop harassment.
Show Evidence of Debt
Some debt collection agencies buy debts once an original creditor charges off the debt. Collection agencies attempt to recover these old debts, and they typically earn a percentage or commission on recovered debts. If dealing with constant harassment, respond to the debt collection company in writing and request proof that you owe the debt. By law, creditors have to respond to your request within 30 days, and if they can't provide evidence, they have to stop collection attempts.
Dealing with Phone Calls
Original creditors can call your home to request payment on an outstanding balance. But once a collection agency owns the debt, you can write a letter to the agency requesting that it stop telephoning your home or office. According to the Fair Debt Collection Practices Act, collection agencies must honor your request and cease telephone calls.
Pay the Balance
Paying an old outstanding balance is a way to stop harassment from a collection agency. Contact the collection agency and submit payment for the entire balance. If you don't have the necessary funds, work with the collector to try to negotiate a partial repayment or debt settlement. If the collection agency agrees to a settlement or partial repayment, it accepts less than the balance owed to satisfy the debt. The collection agency will stop sending letters and telephoning you to collect money owed. Get debt settlement agreements in writing before making a payment.
File Bankruptcy
As a last alternative, file bankruptcy to wipe out or restructure your overwhelming debts and stop creditor harassment. Upon filing bankruptcy, creditors and collection agencies handling your debts receive notification. A bankruptcy filing stops collection attempts, and collection agencies are prohibited from calling you. This is called an automatic stay, and it remains in effect until a bankruptcy judge lifts the stay or until debts are discharged by the bankruptcy court.
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