How to Deal With a Third-Party Debt Collector

Any person who directly or indirectly collects debts is a third-party debt collector. When contacted by such an entity, individuals are responsible for knowing how to correspond with them and how to protect themselves. The Federal Trade Commission (FTC) and the states have laws protecting citizens from unscrupulous and illegal debt-collection activities. With some basic education about the law, your rights and responsibilities, you can navigate your way through an encounter with a debt collector.

Instructions

1

Know your legal rights according to federal law. Request, if not provided, a "validation notice," which the FTC requires and which details the amount of the debt and the name of the original creditor.

2

Make all arrangements to pay in writing. Obtain a signature on all agreements from a debt collector. Send all paperwork by regular mail with return receipt requested.

3

Read your credit reports from all three major credit reporting companies -- Experian, TransUnion and Equifax. Use the only FTC-approved credit report source, Annual Credit Report. File a dispute with the credit-reporting companies for any unwarranted debts posted by third-party debt collectors. Provide copies of correspondence with these debt collectors.

4

Send the debt collector a letter stating that you don't owe any or all of the money, or ask for verification of the debt. Make such requests within 30 days after you receive the validation notice.

5

Contact your secretary of state. Verify that the debt collector has met all state requirements to operate in your state.