How to Handle Debt Collector Calls

The federal Fair Debt Collections Practice Act regulates the behavior of debt collectors as they contact debtors by telephone. Knowing how the rule protects you makes handling debt collection calls easier. For example, debt collectors are prohibited from harassing you by calling at odd hours, such as very late at night or very early in the morning. Debt collectors also may not scream at you or attempt to intimidate you by suggesting physical harm. It's also important to note that you do not have to speak to debt collectors on the phone if you choose not to.

Instructions

1

Force the debt collector to verify the debt. Multiple collection agencies may call about a debt as it bounces from one agency to another. Most debt collectors work on commission and return the debt to the creditor if they are unable to collect. The creditor then assigns or sells the debt to another collector. By law, each debt collector must send you a written notice notifying you it is the collection agency of record. Federal law allows you to demand in writing that the debt collector provide proof that it is authorized to collect. Refuse to have telephone conversations with debt collectors until they provide this proof in the form of a credit application you signed or a copy of the most recent billing statement.

2

Write a letter to the debt collector instructing that the agency not contact you at work, if you do not wish to take the calls there. By law, the debt collector must abide by your request. In the letter, tell the debt collector that you are available only at home or on your cellphone, whichever is your preference.

3

Speak with debt collectors for just a few minutes over the phone, keeping the conversations focused. For example, tell the debt collector that you cannot afford to make a payment this month but you are willing to provide an update next month. If the debt collector protests, calmly tell him that's all the information that you have for now and that you are hanging up. Repeat the same information if the debt collector calls back. Never promise payments that you cannot make.

4

Inform the debt collector that you cannot discuss your assets, such as the number of cars you own, real estate or money in investments. An exception to this is when you are speaking with your original creditor about a hardship plan offering lower monthly payments or a loan modification. Other debt collectors, such as debt collection agencies, may use information about your finances to determine whether to file a lawsuit against you. Debtors with lots of assets and delinquent debts are sometimes targets for debt lawsuits. Debt collectors know that if they win a lawsuit, they can garnish the debtor's bank account or wages and possibly place liens on property.

5

Tell the debt collector you can make payments only by money order, cashier's check or debit card -- if you are agreeing over the phone to a payment plan or partial payment. Do not give your checking account information to the debt collector. A debt collector could use that information to garnish your bank account after a lawsuit. Ideally, make the payments using a prepaid debit card not associated with your bank account.

6

Inform debt collectors to contact you only in writing, if you would prefer not talking with them on the phone at all. This provision is available to you under federal law. After the debt collector receives the letter, the agency may call you only once more -- to notify you it will not be calling again.