5 Common Mistakes You Need to Avoid When Dealing with a Debt Collector

Dealing with a Debt CollectorAt one point in life you will have to deal with a debt collector. With the harsh economic times more and more people are taking loans to help them achieve some of their tasks. 50% of people seeking for debt collectors services are known to make some common mistakes which put them in undue pressure after forfeiting the debt repayment.

Have you ever dealt with a debt collection agency? At times, it can be a stressful experience. There are debt collectors who are known to be very rude and make endless demanding calls and letters which are capable of evening shaking some of the toughest people. The confusion and stress that most of the debt collectors’ cause can easily make most consumers make mistakes which can result in future legal or financial difficulties. Here are some of the five common mistakes you need to avoid whenever you are dealing with a debt collector.

1. Conducting Businesses over the Phone

In case you are dealing with an international debt collection company, you need to consider that you might at one point end up in a court. The debt agency might decide to sue you for the forfeited debt or you might decide to sue the debt collection company for harassment. You might not be in a position to successfully defend your case whatever the situation if you do not have a proper documentation. One important rule to remember whenever you are dealing with a debt collection agency is not to conduct any business over the phone. You should always notify any collection agency to contact you via email or using written letters and it is their obligation to comply.

Your main goal is to ensure all the communication with the collection agency is done via writing. These will not only act as a proof in case of any claim but it will also help prevent endless annoying calls from the debtors.

2. Always Accepting a Computer Print Out as Debt Validation

Requesting for a debt validation from the debt collection agency is one of the most basic methods of credit repair. The credit agency is required by the law to remove any type of entry it has placed on your credit report in case it fails to issue you with any validation. Most collection companies will always issue you with a print out that contains your current account information upon receiving your dispute.

3. Providing Your Personal Information

In case you have ever read a fine print of a collection letter, I am quite sure you might have noticed a stipulation stating any information you provide to the debt collection company will be used in collecting the debt from you. It does not mean that an agency has your personal information such as social security number just because it trying to collect your old debts.

4. Making Payment on an Old Debt

The process of paying a debt collection agency can quickly turn into a nightmare. Every nation is known to have a statute of limitations that regulates the time the creditor has to collect the debt via a lawsuit. Immediately the debt collection statute expires in your state, then you are safe from the lawsuit. This can quickly turn into a lawsuit, bank account levy, wage garnishment or even property liens. Though the law does not permit any collection agency to empty your bank account without getting a legal permission from the courts that does not mean the vice does not occur at times.

5. Failing to Get Agreements in Writing

It can be a great relief when you finally come into an agreement with your debt collection agency over your debt. It does not matter the type of agreement you are having, it is always appropriate to ensure you have the agreement in writing before you make any payments. For example, in case a debt collector makes a verbal agreement with you before he or she leaves the company, there may not be any record of the agreement.