How to Cooperate With Debt Collection Agencies

Collection agencies can be frustrating to deal with if you don't know how to properly work with them. It's important to cooperate with debt collection agencies to resolve your debt problems and prevent your credit from permanently being destroyed. Avoiding phone calls and collection letters from a debt collection agency will only create more problems. By dealing with debt collection agencies and responding to collection letters, you can work out payment plans and have a better chance of protecting your assets and credit. It's important that you understand your rights under the fair debt collection practices act, and how to make the right choices when cooperating with collection agencies. By understanding your rights, you'll avoid being unlawfully pressured by a debt collection agency. Here's some tips for dealing with collection agencies.

Instructions

1




Before you do anything, you must confirm that the debt reported by the debt collection agency is valid. You can do this by requesting a debt validation from the collection agency. Under debt collection laws, a debt collection agency must comply with requests for debt validations. If you have problems then you should speak with a collection attorney.

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Gather all of your financial records and statements regarding your debt amounts. You will need this information when working with the debt collection agency. Review your copy of the debt validation after you receive it from the collection agency. Compare the amounts on the validation form and collection letters to your own records, to see if the collection agency has been accurate in their reporting. Contact the original creditor or credit reporting agency, if you believe the information is not accurate. In the meantime, do not avoid the debt collection agency when they call or send collection letters to you. This will only make matters worse.

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Next, you should learn your rights under the Fair Debt Collection Practices Act. There are certain things that debt collection agencies are not allowed to do and you should know your rights so you can avoid being pressured by a debt collection agency. By understanding the debt collection laws under the fair debt collection act, you'll know your rights throughout the entire process. Report any violations of the fair debt collection act to the attorney general's office in your state, as well as to the Federal Trade Commission.

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Explain your financial situation and arrange repayment plans with the collection agency. You can also offer a potential payoff settlement if the debt is small enough that you feel you can pay a portion of it off in a lump sum. In some cases, debt collection agencies will still offer you a debt settlement even if you are not able to pay the settlement in full at once. A debt collection agency may even break up the settlement into several different payments if you ask them too. Make sure you arrange repayments in confidence so you can avoid further problems with debt collection agencies.

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Get everything in writing! Any payment plans or agreements that have been made with a debt collection agency should be submitted to you in writing. Make sure you have copies detailing the payment terms and agreements. The letter should state that the original creditor has agreed to accept the payment as payment in full. You should also ask the debt collection agency to report the debt as being paid in full even if you are offered a reduced payoff option to the credit reporting agencies.