How to Negotiate with Debt Collectors
An average person might think that it is an unpleasant and intimidating experience to try to negotiate with debt collectors. If a credit professional doesn’t help you or guide you in the process, the entire experience could get even worse. When it comes to how to negotiate with debt collectors, there are several important tips you have to remember before you pick up that phone and try settling a collection account or outstanding debt.
Know All Your Rights
Never be intimated every time your debt collector calls you. Under the law, you have some rights when you deal with debt collection companies and as a result, they have certain protocols to follow when they call you on the phone. It is a must to know these limitations since every time a debt collector crosses them, you have all the right to take legal actions against them.
Record Every Correspondence
It is likely that debt collectors will be calling you every day, at times even several times in a day. They will even send you letters. Make sure you record all phone calls you had with your debt collector through writing down the time of day and date they call you, their name, as well as the collection agency’s name they call from.
You also need to keep all the letters you got over the mail since these doesn’t just help you staying on top of debt resolution and tracking your progress as it will also be crucial evidence for you when your debt collector questions your debt history or breaks the law.
Request agreements conducted over the phone with your debt collector in writing for you to have proof and something you can refer to later on when needed. Make sure you refrain from speaking with your collection agency again until you got the letters in writing.
Dispute Those You Don’t Owe
Make it a point that you request proof of all your debts in writing from your collection agency. This way, you can be sure that they will chase you only for those you owe. If you don’t owe the debt they chase you for, you can dispute this in writing. If you already finished paying off the debt, you can send copies of your payment proofs. Just ensure that you keep copies of each correspondence you make with the collector for you to have a solid evidence trail to refer to in the future if the need arises. A lot of people are chased by debt collectors for debts they don’t owe or debts they already paid off.
Negotiate within What You Can Pay
The main problem with loans and credit cards these days is that a lot of people spend much more than what they can afford that can lead to insurmountable debt, with debt collectors harassing you to pay it. if you cannot pay your debt back in a single lump sum, you can reassess your finances and try negotiating an affordable payment plan with your debt collector.
