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A financial debt went delinquent and now the collection agencies are calling you persistently. You don’t especially like nor enjoy their practices, nevertheless you understand that you are obligated to pay the debt. Really the only option to get them to stop calling you is to clear up the debt.
ENSURE IT IS ACTUALLY YOUR OBLIGATION
You should know whether it is your obligation. Nevertheless, accounts can get mixed up. It could be that a different person with your name is the real debtor. Or perhaps somebody with a social security number resembling yours. These situations do occur. People really end up repaying debt they usually do not owe since they do not check into the situation and get intimidated by the methods employed by demanding collection agencies.
When you are called by a debt collection agency, ask them to verify that you are the account holder. Ask them to supply records with your name, the account number, your address, the original creditor and the balance due. When you submit to them written communication requesting certification of a debt, they have 30 days to answer in writing, and are not allowed to contact you in those 30 days by phone.
DO NOT TAKE THEIR OFFER, MAKE ONE OF YOUR OWN
In cases where the debt has been sold by your original creditor to a debt collector, this agency now legitimately owns the debt. Now you are in debt to them. These debt collectors pay pennies on the dollar for the debt. This means on a $100 dollar debt, they could pay as little as $20 or less! Being aware of this puts you at a definite advantage in dealing with them. They will make an attempt to get the total balance and usually seek to setup payment. They will let you know that the deal is only good for so many days and they need to have payment at once. You should not take this deal. You will get a significantly better one.
The best agreement you can make with a collection agency is to suggest them a portion of the amount due as payment in full. Depending on how old the debt is, you might could pay it off, in full for as little as 25% of the unpaid debt. If you don’t have that amount of cash on hand, do whatever you can to save that money up to propose an offer. Should you present them with payment in full, they are more inclined to accept it. Even so
DO NOT GIVE THEM ELECTRONIC ACCESS TO YOUR BANK ACCOUNT
Collection agencies will strive to force you into giving them electronic access to your checking account. They will propose offers stating that they require payment by a certain date, normally that day, and that they will need the means to access your checking account for electronic transfers. Don t provide anyone electronic access to your checking account, particularly debt collectors.
Avoid being forced into this. When you give them access to your account, it is likely they will take more than the negotiated sum and might take everything you have in the account.
Don’t give them your checking account number. Never give them your bank routing number. Do not give them your debit card number. You should not send them a check. To protect yourself, you ought to
GET THE DEAL IN WRITING
After you make whatever deal it is that you are able to make with them, get it in writing. Tell them to forward you the conditions you’ve approved. When it arrives at your house, check it to ensure it correctly describes the deal you made. Should it not, don’t send them payment. Call them and discuss it further. If they have done their part and the document accurately details the deal you made with them, you may send them payment. You should
SEND CASHIER’S CHECKS OR MONEY ORDERS
Contrary to sending a check or providing them access to your account, send a cashier’s check or money order. You’ll pay for the cashier’s check or money order, but it is worth every penny spent. When you do this, you do not permit them access to your private accounts and thenceforth keep them secure. A cashier’s check or money order is pretty much cash.
Retain a copy of the cashier’s check and attach it to the letter you received which outlines the new terms of your deal. Preserve this paperwork for ever. You may find that you will need this years in the future when a different shady collection agency starts calling concerning the same exact debt.
SEND YOUR PAYMENT VIA USPS WITH SIGNATURE CONFIRMATION
When you submit your payment, you must make certain that they get it. If you send it via USPS with signature confirmation, someone at their location (the location the letter says to remit the payment to) must sign that they have actually received it and you will get a copy of their signature. Keep a copy of this with the letter and cashier’s check. For ever.
IN SUMMARY, HOW TO PROTECT YOURSELF WHEN DEALING WITH BILL COLLECTORS:
1. Verify the debt
2. Negotiate a deal, and ask for the specs in writing
3. Send a cashier’s check, do not give electronic access of any kind to your checking account with Signature Confirmation
4. Preserve copies of everything, for ever.