Collection Agency

If you have a history of bad debt, your financial records could be in the hands of a collection agency. The following information will help you deal with collection agencies and will teach you what debt collectors can and can't do in the eyes of the law.

You can expect to be contacted by a debt collection agency if you have missed several payments on a loan or credit card. Usually if you miss one or two payments, the institution that lent you the money will contact you directly. You may incur a late payment fee but if you assure your provider that the situation will not reoccur and prove it by making regular payments in the future, you are unlikely to be contacted by a collection agency.

However, if you get into the habit of ignoring telephone calls and correspondence from your provider relating to your debt, your case could be passed over to a collection agency. While some debt collectors are not the aggressive people portrayed in the movies, it is worthwhile bearing in mind that the majority do receive commission for their services. Therefore it is in their best interests to convince you to pay off your debt.

The best way to deal with a collection agency is to know your rights. You are entitled to negotiate payment plans with them and should never be coerced into making a full repayment of the debt. An agency is not permitted to contact you after 9pm or to make repeat telephone calls to your place of residence or employment. They are not allowed to threaten you either verbally or physically or use obscene language.

When dealing with collection agencies, make sure you document the times they contact you and the details of each conversation. If you feel you are being harassed or unfairly treated, contact the Federal Trade Commission (FTC). This organization manages a Fair Debt Collection policy and will be able to offer you assistance if you feel a collection agency is operating inappropriately.