Get Rid of Collection Agents – Dealing with Credit Card Debt

Did you know that debt collection agencies buy your personal debt from the credit card company when you’ve been in default for a very long time? However, this does not mean that your debt disappears over time. Every time you get a call from a debt collector, it’s mostly because you may not even have made the minimum payment for about a month. But if you haven’t paid it in months, your credit card issuer will pass the debt on to third-party agencies called debt collection agencies.

So if you have withdrawn into your credit card debt payments and it’s already hurting your credit score, you should know how to get out of this precarious situation. Here are some ways to deal with aggressive debt collectors.

Would you ever make the mistake of entering into a contract or agreement before understanding the terms and conditions? Certainly not! Likewise, you should not be forced to reimburse the debt collector as soon as he contacts you. Take the time to browse through your debt repayment options through collections. Do not promise to pay and never give payment details to the debt collector as they may misuse them later.

Whenever the credit card company sells a specific debt to a third-party debt collection agency, the agency moves on to resell the debt. The majority of debt sold has errors in the total amount you owe or who owes it. Debt collection measures are the main source of complaints to the CFPB. Here are the steps to follow:

  • Ask for a validation letter in case you do not receive it within the first 5 days of the first contact. The letter should include details about the debt, the collection company, and how to dispute the debt.

  • Maintain appropriate communication records with the collector and any payments you have made previously.

  • Gather your personal debt records, once you are sure it is yours. There should be details of the original credit card company and payment history.

  • Know how to use and exercise your rights

Your closest friend during this time is the Fair Debt Collection Practices Act. This is a law that outlines consumer rights and protects you from harsh debt collection tactics. Be communicative about how and when debt collectors should contact you. Collection agents should not mislead you about the payments you need to make. Collection agents are never allowed to use threatening or abusive language. You also have the right to dispute this debt. If you do so within the first 30 days, the collector is prohibited from seeking payment until the dispute is over.

If the debt collector is violating your rights under the FDCPA, you can notify the CFPB. You can also check with Legal Aid or the state attorney general’s office.

This article does not necessarily reflect the views of the editors or management of EconoTimes