A CFPB (Consumer Financial Protection Bureau) study has revealed more than one in four consumers in our country have third-party debt collections tradeline reporting.
So, if you have started receiving collection calls, you may have some unpaid debts. But the collection agencies have a terrible reputation of harassing people to squeeze out money as much as possible. So, you might be worried thinking about how to get rid of this situation.
Don’t worry. Here we have listed some of the best possible tips to deal with debt collection agencies and stop receiving collection calls.
Is the debt truly yours?
Before proceeding, you need to find out whether or not you owe the debt. In many cases, it has been found that the collection agencies claim to collect debts that they can’t legally do or have already been paid.
So, while receiving collection calls, make sure to note the collector’s name, name of the collection agency, office address, and phone number. Besides, ask for a debt validation letter that clearly states the outstanding debt amount, details of the original creditor, etc.
Once you receive it, you can check with your original creditor about the legitimacy of the debt. If you don’t owe the debt or you have already paid it off, dispute it along with supporting documents within 30 days. If your claim is valid, the collection agency should stop attempting to collect the debt.
Besides, make sure to verify whether or not the debt has crossed the statute of limitations (SOL) in your state. If the debt has crossed the SOL, you are not legally obligated to repay it. Eventually, the collectors can’t call you to make payments for time-barred (which has crossed the SOL) debts.
Thirdly, you might receive collection calls for the debts that you don’t owe at all. This kind of incident can happen when you have opted for a new mobile number, and the collectors are trying to reach its previous owner. In that case, you will have to send a cease and desist letter to stop calling you since you are not the debtor.
Know your rights (FDCPA)
The primary step to deal with debt collectors is to know your rights under the FDCPA (Fair Debt Collection Practices Act). According to the FDCPA, the collectors can’t:
Call at your workplace
Call you before 8 AM and after 9 PM
Contact your friends and family, employers, neighbors
Call you if you have an attorney representing you
If you feel that the collectors have violated any one of your rights, you can file a complaint with the CFPB.
Besides, you can hire an FDCPA attorney to sue the collection agency in the state court for violating your legal rights. If it is proven that the collection agency has violated the FDCPA rules, you can collect about $1,000 for statutory damages, including your attorney’s fees and costs.
Try to settle the debts
Let’s say you genuinely owe some debts, and the statute of limitations has not crossed yet. But the outstanding balance amount is so high that you can’t afford to pay in full.
In that case, you can try to negotiate with the collectors to reduce the outstanding balance amount by offering a lump sum payment. You can explain why you are unable to repay in full with supporting documents.
If the collectors agree to a settlement, make sure to keep a copy of the agreement in writing. It should clearly mention that you have paid the settled amount, and you don’t owe these debts anymore. Thereby, you won’t receive collection calls.
But in reality, negotiating with debt collectors is usually a complicated process, requiring professional skills. So, you can consult a reputable debt relief company to deal with the collectors on your behalf. By doing so, you can repay your debts with ease and stop receiving collection calls.
Request the collection agency to stop contacting you
According to the FDCPA laws, you have the right to ask the collectors to stop contacting you. For that, you will have to send a cease and desist letter to stop communicating with the collectors.
However, that won’t change the fact of you owing the debt. The collection agency can sue you for nonpayment of debt. If the collection agency wins the judgment, the court can order your wage garnishment.
If you owe the debt and it has not crossed the SOL period, I would suggest you communicate with the collection agency and seek more information on the debts. Based on that, try to chalk out a repayment plan to get rid of the debt as soon as possible.
The bottom line is, receiving collection calls can be annoying, especially if the collection agency is not following the laws properly. That’s why you should be aware of your FDCPA rights that we discussed above. At the same time, hopefully, the above tips will help you to get rid of incessant collection calls and live with peace.
(855) 254-7841
(855) 254-7841
