Negotiating With Debt Collectors

1. Don’t believe most of their threats. One of the greatest advantages afforded to clients in debt negotiation programs is that most of the communication occurs between the debt settlement company and the collectors. When dealing with debt collectors, remember that they will do almost anything to get full payment, even if that means misleading the true consequences of defaulting on your financial obligations. Many debt collectors will threaten legal action even if they have no intention of ever pursuing this avenue for collection, which is a violation of the Fair Debt Collections Practices Act (FDCPA) but very difficult to prove.

2. Figure out what you can afford. By prioritizing your bills and budgeting accordingly, dealing with a collector is much easier. After all, it’s not very difficult to turn down a payment plan if you know it’s impossible for you to afford it.

3. Tape the telephone call. Many times this simple tip will cause the collector to treat you with more civility and respect. Even better, if the collector insults you, threatens violence, or anything else that violates the specific provisions of the FDCPA, you can be awarded up to $1000 plus damages if you pursued the issue in court.

4. Never disclose private information. Most importantly, never disclose where you work or any checking account information. Equipped with this information a debt collector has greater incentive than before to pursue legal action to obtain a court judgment. Part of the reason why creditors tend to use legal action as a last resort is because it can be very expensive. Paying a lawyer to locate any assets or employment information about a debtor is unnecessary when the collection agency already has your checking account information.

5. Get everything in writing. To repeat the first point: many debt collectors will do anything to get full payment. If saying one thing and doing another helps their bottom line, then expect them to do this. Sample settlement letters can be found online. Another trick is to write “settled in full” on the payment that you send to them. Cashing the check legally constitutes acceptance of the payment as full settlement of the debt, even if they cross out what you wrote.

Don’t want to deal with the stress of debt negotiations? Please feel free to call (877) 274-1260 or fill out a form and we’ll contact you as soon as possible.