How to Stop Collection Companies From Bothering You

When a consumer does not fulfill the terms of a credit line or loan by failing to repay, the creditor may sell the debt to a collection agency. Some debts are sold outright for pennies on the dollar, while others are collected by a third-party agency for a flat fee or percentage of the amount owed. Collection agencies may contact the debtor but must follow the laws set forth in the Fair Debt Collection Practices Act.

Instructions

1

Request contact only through written communication. Write a "cease communication" letter to each collection agency. State you only wish to be contacted by mail and give a reason why you are asking not to be contacted such as your not owing the debt, an inability to pay the debt at this time, a dispute about the debt, or your not having received the product or service.

2

Arrange a payment agreement. Phone the collection agency or mail a letter stating you wish to resolve the matter and offer to settle the debt. Begin by offering to pay twenty-five cents on the dollar and be prepared to negotiate up to paying half the debt. Collection agencies would rather collect something than nothing. Get the agreement in writing and pay by money order or cashier's check.

3

Consider engaging the services of a debt settlement company. Go to the local chapter of the Better Business Bureau as well as the local Chamber of Commerce to find a licensed, reputable debt settlement agency. The agency will deal directly with the collection companies.

4

Hire an attorney. If your debts are significant enough, you should consult an attorney about filing for federal bankruptcy protection. By law, once an attorney is retained by a debtor for the purpose of filing bankruptcy, collection companies and creditors may not contact the debtor by any means.