According to Time Magazine, over a third of all Americans have some sort of debt reported to debt collection agencies. There are a variety of reasons behind this, ranging from switching cell phone carriers with a balance still due to one service provider all the way to to not paying larger loans. Nobody wants to come face to face with debt collector. It can result in some of your possessions being repossessed, or at the very least continual phone calls and mail to your address. But what can you do, especially if you don’t have the money? Here are five ways to avoid debt collectors legally while taking care of your money situation.
Check on the Debt
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While a third of Americans have debt reported to debt collectors, around a quarter of this is reported on the wrong person’s account. According to the Federal Trade Commission, 24 percent of mistakes of reported debt to collectors is for the wrong person. There is nothing worse than being hounded for someone else’s debt. Perhaps it is a different person with the same name, or maybe a previous tenant in the same address. Whatever it is, checking out what the debt is, where it comes from and if it really is someone’s or not is important and can help turn the debt collectors away.
Ask For Proof
Even if you know you likely owe the debt and you have been waiting on the collectors for some time, there is a way to buy you more freedom while you get your money in order to pay the debt back. After receiving a written notice for the debt, contact the debt collector through certified mail, asking for verified proof of the debt. This can take a bit of time for the company to put together and, as it does this, you should experience a bit of freedom from the harassing phone calls. The debt collector is required to stop collection activity while they provide you with verification of the debt. After all, you did not take money or a service from this particular company, but a different company altogether. They need physical proof it is them you owe money to, not another entity all together.
Don’t Fall For Scare Tactics
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Many debt collectors will try to incorporate scare tactics into collecting money. However, this can be illegal. For starters, they are not allowed to call you before 8 a.m. or after 9 p.m.. They are not able to threaten legal action, state they will garnish your wages or seize any kind of property. Should a debt collector make such a violation, you need to file a complaint with the FTC and the state Attorney General.
Can’t Charge You Fees
Has the debt collecting agency started mailing you documents, stating you owe more and more money? Perhaps the collector is starting to tack on fees? They are not allowed to do this. You did not sign a contract with the debt collector. Due to this, they are not allowed to start adding on fees. If you are looking to pay the debt and you notice this, point it out and tell the debt collector you are not paying the fees. You don’t have a contract with them and you don’t need to pay it.
Always Negotiate
Negotiation is the name of the game. While nobody likes to deal with debt collection agencies over money, it might work out in the long run for you. Contact the company and negotiate a payment deal. You’ll be able to lower the amount (typically) you need to pay.
