How to Deal with Credit Card Debt Collectors

Credit cards are a convenient way to make purchases when you don't have cash on hand. Unfortunately, the economic downturn has forced many people to rely on credit cards to get by. The problem with using credit cards to meet your living expenses is that you eventually end up with too many bills. You continue to fall deeper into debt, and, before you know it, debt collectors are ringing your phone off the hook. You can put a stop to the constant calls and harassment once you know your rights.

Instructions

1

Read the Fair Debt Collection Practices Act, or FDCPA. Do this before you talk to any debt collector on the phone. The Fair Debt Collection Practices Act prohibits debt collectors from using abusive tactics to collect from you. There are rules under the FDCPA that debt collectors must adhere to. These rules state what a debt collector can and cannot do when collecting a debt, as well as debtors' rights. For example, a debt collector cannot threaten you with legal action, nor can he pose as an officer of the law, an attorney or any other legal authority.

2

Let calls go to your voice mail or answering machine. Caller ID can save you a lot of stress. You can let unknown or unfamiliar phone numbers go to your voice mail. Don't take calls from a debt collector unless you're in a position to pay the debt. Taking a debt collector's call to tell him you are unable to pay will only give him the ammunition he needs to pressure you into making payment arrangements you may not able to keep.

3

Request debt validation. Debt collectors are required to send debtors what is known as a dunning letter. Usually you receive a dunning letter before you start getting phone calls, but that's not always the case. The dunning letter should contain your correct name and address, the name of the original creditor, the account number and the total amount owed. You have 30 days from the date of the letter to dispute the debt. Respond to the dunning letter in writing, requesting proof that the debt is yours, especially if it's an older debt. If you don't receive a dunning letter and a debt collector calls, you have the right to request that he send written proof that the debt is yours. The collector has 30 days to honor your request or he has to cease collection activity. Validation should include the same information as a dunning letter, as well as a breakdown of charges if you are disputing the amount you owe.

4

Stay calm and document everything. Don't let a debt collector provoke you into losing your cool. Some use fear and intimidation to scare people into paying them, or making a promise to pay that they can't keep, just to get off the phone. Write down the name, company and phone number of every collector you speak to, as well as the terms of any payment arrangements. Ask for written confirmation of any payment arrangements. Politely hang up on any debt collector who becomes abusive, uses offensive or profane language or starts threatening you. By law, it's your right not to tolerate such behavior.

5

Don't make promises you can't keep. Most debt collectors will work with you and work out a suitable payment arrangement. Don't let a debt collector pressure you into paying more than you can afford. State firmly what you can afford to pay and stick to it. Your relationship with a debt collector will go much smoother if you make the agreed payments and let the debt collector know if problems arise.