How to Deal With Collection Companies

When debts fall past due 180 days a creditor will usually forward them to a collection agency, also know as third party debt collectors, for further collection activity. Some collection agencies abide by the rules and some don't. According to MoneyCentral.com, consumers reported threatening and harassing phone calls made during times which are prohibited by collection agencies. There are, however, ways to stop overly aggressive collection agencies in their attempts to collect a debt.

Instructions

1

Study the Fair Debt Collection Practices Act, (FDCPA). Congress signed this act into law in 1978 to govern the activities of third-party debt collectors. Once you are familiar with the terms and conditions, you will be able to challenge activities that violate these policies.

2

Make arrangements for payments based on your budget. Never let a collection agency force you into paying more than you can afford. If you cannot pay, let them know you will contact them when your situation changes or when you can make a payment.

3

Notice the time you receive phone calls. According to the FDCPA, a collection agency must call you between the hours of 8 a.m. and 9 p.m., unless they have your permission to call at different times of the day. Some collection agencies have a tendency to violate this rule. According to the FDCPA, you can submit written correspondence requesting that a collection agency not communicate with you and they have to comply with your request.

4

Check to see if the statute of limitations has expired on your debt. It can vary from state to state. When the statute of limitations has expired, a collection agency can still sue you, but they will not win a judgment if you show up in court and provide proof of the expiration.

5

Watch out for threats and harassment. Collection agencies cannot make threats, such as legal action and garnishment of wages, that they have no intention of carrying out or don't have the authority to carry out. Harassing and abusive phone calls are prohibited by the FDCPA.

6

Make sure you don't volunteer too much information. A collection agency could use it against you in the future. If they have your checking account information, they could get a bank levy after a judgment is received.

7

Contact the Federal Trade Commission to report violations. Whenever a collection agency violates the FDCPA you should contact the FTC. Your claim or report will be investigated. You can reach the FTC at 1-877-382-4357.