The Wrong Way To Deal With Debt Collectors

For every situation in life there is a right way to respond and a wrong way to respond. In the case of financial decisions, making the wrong choices can often result in negative consequences down the road. One of the consequences you might face if you have managed your finances poorly or face a financial hardship is having to communicate with collection agencies and debt collectors. When it comes to dealing with debt collectors- reacting the wrong way can end up costing you big time in the end. Here are a few examples of what NOT to do when dealing with a debt collector.

• Do not agree to make a payment without a confirmation notice. If you and the debt collector have come to some sort of agreement on payment, make sure you get this agreement in writing. Failing to do so might result in an account that remains active despite the fact you paid the “agreed” amount.

• Do not lie. The truth shall set you free, alright- perhaps not in all situations but in this case you should avoid lying to a debt collector. They are notorious for not playing by the rules and if you get caught in a lie, they will likely use it against you at some point. Not to mention it is much easier to keep track of the truth.

• Do not allow yourself to be bullied. Debt collectors get paid based on how much debt they collect. They have a vested interest in doing whatever it takes to get you to pay. Although the Fair Debt Collection Practices Act prohibits certain tactics, that is not to say they are never used against consumers. Know your rights and refuse to allow a debt collector to treat you in a disrespectful or intimidating fashion.

• Do not agree to a payment you cannot make. You may be tempted to agree to send a payment knowing you will not have the money to do so. So you are either lying or you will send a check that is going to bounce like a rubber ball. Both scenarios end badly for you, as you give the creditor more ammunition in a court case. If you say you can pay then pay and if not, don’t make the promise.

• Do not pretend they don’t exist- Debt collectors will call incessantly and sometimes you might just think it better to avoid the calls or ignore the notices in the mail. This rarely works out in your favor. The calls will keep coming until one of two things happen, you pay your debt or you get sued. This is one situation where you have to face the facts and come up with a plan to address the debt.

• Do not authorize automatic drafts from your bank account. Never, ever give you checking account information to a debt collector. You can agree to send a payment, but should you authorize a debt collector to deduct money from your account you no longer have control over how much and when deductions might appear. Retain control and avoid a situation where a higher payment amount or multiple payments are withdrawn without your consent.

Dealing with debt collectors is something we all want to avoid. Unfortunately with the current state of the economy, people are struggling financially making it a reality for many. By knowing what you should and should NOT do when dealing with a debt collector you increase the odds of coming out the winner in this situation.