Understanding How to Deal With Debt Collectors

Dealing with debt collectors does not have to be difficult. If you are cooperative, they will treat you professionally. Nonetheless, there are a few unprofessional debt collectors who may threaten you or use abusive language. To prevent this kind of harassment, here is how to deal with debt collectors when they come calling.

how to deal with debt collectors

Ask the debt collectors to give the information in writing

A collector should send you a written debt notice detailing the amount you owe, your creditors’ name and the action you can take if you believe that you do not owe any money as stated in the debt collection act. Ensure that you receive the written information before engaging in any chitchat with the debt collectors. If you do not recognise the debt, notify the debt collectors in writing within 30 days after receiving an official communication.

What to do if you acknowledge the debt and can pay

Delaying a debt payment may result to further nagging from the debt collectors or court cases that may require more money. Therefore, if you own the debt, source the required amount of money and pay. You could borrow from a friend or take out a personal loan. After paying the debt, request for a written acknowledgement from the debt collection company as proof that they are satisfied with the payment and should not contact you again.

What to do if you cannot pay

If you owe the money in question but cannot afford to repay it immediately, request the debt collectors to design a repayment plan for you. The plan should work in your favour. Do not strain to fit in a repayment plan that favours the debt collectors. Bear in mind that, you are entitled to a 30 days grace period to sort your finances out and determine what you can afford to pay. Check out Debt Mediators

Set your limits

Do not allow the debt collectors to contact during odd hours. Set the contact limit to working hours only. If you cannot receive personal calls at work, inform them to contact you after office hours but before 9 pm. If you do not want any contact from them, design a repayment plan, promise to adhere to it and request them to stop contacting you.

What are debt collectors allowed to do?

You may think you know how to deal with debt collectors by evading them, but, they also have their rights especially when dealing with rogue debtors. Therefore, if you are not cooperative, debt collectors are allowed to seek legal assistance. If your debt represents unpaid child support, they are allowed to contact your employer. They are allowed to design a repayment plan when they deem fit. The plan should favour both parties and you have to support the idea. Above all, they are permitted to remind you of payments if you delay or do not pay as agreed.

Conclusion

Knowing how to deal with debt collectors when they approach you for money ensures that you are not misled or intimidated. Though there are rules that govern debt collection companies, they can be barely followed and some companies use unscrupulous ways to recover debts. For more details, just visit https://www.debtmediators.com.au/debt-articles/how-to-deal-with-debt-collectors/

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