Debt Collection - Slowing Down The Process

Consumers are federally protected in their dealings with collection agencies who must abide by these rules or face possible fines or sanctions. If you want to take control when facing debt collection efforts, you need to know your rights related to such actions. Here's some rules to consider.

Cease and Desist Order

You are within your rights to demand that a collection agency cease all further contact with you and they must comply, except if they want to inform you that either your debt has been canceled or that you will be sued. Going forward, they must direct all communication through your lawyer to which he/she must respond. Alternatively, you can tell them that you want to deal only with the original creditor, not with them. Then you need to reopen negotiations with that creditor.

Real Intentions - Not Just Threats

Collection agencies are prohibited by law from threatening actions they do not actually intend to take. For example, if they inform you they are planning to sue you to recover your debt, they must follow through with the action, or they are guilty of intimidation and coercion, which they are not allowed to do. If this has happened to you, you can file a complaint with either your state Attorney General's office or the Federal Trade Commission.

Verification of Debt

At your request, a collection agency must provide written verification of your outstanding debt that includes how much and to whom your debt is owed. In the interim, you might be able to either negotiate a settlement, or come up with the needed funds. Within five days, you must be given validation of your liabilities, as well as proof the agency is authorized to collect on it.

If, once you receive proof of your debt, you think the facts are wrong, you must send the collection agency evidence of the error by certified mail within 30 days of its receipt. If you don't dispute the facts at this time, the collection agency will assume the debt is valid and continue to pursue action against you.

There is one more way to delay actions within the 30 days following receipt of the notice of validation. You can request further proof of a judgment against you, as well as detailed address and contact information on the original creditor. Your attorney can advise you on what's right for you.

While the facts in your case are in dispute, the collection agency must postpone all debt collection activities until the information requested is received. Contact the proper authorities to complain about any violations. Don't assume that just because the facts back you up that everything will resolve in your favor. Inaction on your part can result in a judgment against you.

Make Them Play Fair

Collection agencies are governed by federal laws when trying to collect what's owed them, but you need to hold them accountable for playing by the rules. Seek government intervention if you have been mistreated or not heard. Delaying the process can give you just enough time to negotiate an equitable settlement, either with the debt collector, or your original creditor. Remember to get any such agreement in writing, stating it's payment in full and ask that any negative marks be stricken from your credit report.

If you find yourself in a situation where you need to settle a debt with a collection agency, it's important to know the rules. Understanding the process can save you a lot of hassle and possibly even save some money and help repair your credit.

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