How to Respond to Collection Agencies
- 1). Do not ignore agency calls or letters. Ignoring the problem will not make it go away. Speaking with the company allows to you hear the case against you, identify the agency and obtain preliminary information.
- 2). Record all conversations with the agency representatives on a tape recorder and keep copies of all documents. At the beginning of each call, tell the representative you are going to record the conversation. Keeping records allows you to access information readily and comes in handy in case the matter goes to court.
- 3). Ask the collector to mail copies of all documents related to debt validity to your home address. Documents include the original signed loan agreement or credit card application, full payment history on the account and the contract between the original creditor and the debt collection agency.
- 4). Research the statute of limitations, which gives the time frame during which a debt is collectible, to determine if the debt the agency is trying to collect is valid. Check with your state government as statutes vary from state to state. If the statute of limitations has run out, send the agency a letter stating so. After a certain date, debt is known as time-barred or zombie debt, meaning it is too old for legal collection efforts.
- 5). Write and send a debt collection dispute letter to the agency if you do not agree with its findings and do not plan to pay. See the resource at the end of this article for a sample dispute letter.
- 6). If you agree to pay, do so only by bank draft or cashier's check and registered mail. This keeps your bank account information private from the agency.
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