Practical Ways To Deal With Unexpected Debt Claims

The slightest misstep in a debt claim could result in costly consequences, which is why it is important to determine how to deal with a debt collector the right way. Under the Fair Debt Collection Practices Act, debtors have a fighting chance against abusive collection agents who are willing to cross the line for a few thousand dollars in credit debt. Below are simple steps on how to handle a debt collection letter from the mail:

Validate the Debt First

You can’t pay for something without verifying whether or not you really do owe money. Unfortunately, many debt collection agencies send collection letters to the wrong address! Under the Fair Debt Collection Practices Act, debtors have the right to ask for debt validation from the collection company. Five days after you first contacted the debt collector, they must present a letter telling you the specifics of the debt’s ownership.

Raise a Dispute

In some cases, collection companies will try to collect out of statutes debts. If the debt is extremely old, it is best to check your state’s Statutes of Limitation on consumer debt. If your debt is out of statutes, the debt collection agency can no longer collect nor can they file a credit card lawsuit. If your debt collector is threatening you with a credit card lawsuit on out an out of statutes debt, you can turn the tables and go after them for crossing the line.

Limit Interaction

Under the FDCPA, you have the right to outline when and how a debt collector can contact you. For example, if you do not want to be phoned at certain hours, you can notify them. If you do not want to be phoned at work, you can inform them and should they persist with collecting the money the way they want at the time they choose, you can file a complaint and go after them. If the collection agent or agency was found to have violated your rights, under the FDCPA, they will have to pay you for damages done for harassment.

In addition, you can stop debt collectors from using threats or foul language to scare you into paying the debt. If you show that you will not tolerate such behavior, they are likely to take the message and back down.

Don’t be fooled into thinking that your debt collector has the upper hand when it comes to debt claims. It is important to know your rights and learn how to protect yourself from unsavory behavior in debt collecting.