Dealing with debt collectors can be an unpleasant and stressful experience. You may feel pressured to make payments you can’t afford or agree to terms you don’t fully understand. While it’s important to take debt collection seriously, you also have certain rights when it comes to interacting with collectors. Knowing what not to say is just as important as knowing what to say. Here are some key things you should avoid saying to a collection agency.
Do Not Provide Sensitive Personal Information
Collectors may try to get you to volunteer personal financial information like your bank account numbers Social Security number, or other sensitive details. Never provide this type of information to a collector over the phone. Only give out what is absolutely necessary like your name, current address and details specifically about the debt in question. Providing extra information just gives them more ammunition.
Do Not Agree to Unreasonable Payment Terms
Collectors may push you to make very high monthly payments that don’t fit your budget. They may say things like “Can’t you just skip that car payment this month?” While you want to make a good faith effort to pay what you can, don’t agree to payment terms you know you can’t meet. This will just set you up for failure down the road.
Do Not Make Partial Payments
Some collectors will ask you to make a small “good faith” payment, even if you can’t pay the full amount It may seem harmless, but making even a tiny payment can reset the statute of limitations period on old debt This gives collectors more time to sue you for the remaining balance. Don’t start making payments until you’re sure you can continue.
Do Not Admit the Debt is Yours
You should never say “the debt is mine” or “I owe this money,” even if you’re sure you owe it. Collectors may try to record you saying that you agree to pay the debt. This gives them proof if they decide to sue. You should say things like “I’m calling about the account” instead.
Do Not Agree to Revive Old Debt
If the statute of limitations has expired on a debt, it generally becomes uncollectable. However, making any payment toward it or even just acknowledging that you owe it can revive the debt and reset the clock. Don’t make agreements on old debts without first determining if the time limit for legal action has passed.
Do Not Lose Your Cool
Collectors frequently use aggressive, high-pressure tactics to get debtors to pay. As frustrating as this can be, it’s important to keep your composure. Yelling, making threats or using profanity may feel cathartic in the moment, but it ultimately works against you. Stay focused and polite to avoid giving them ammunition.
Do Not Confirm Your Contact Information
People who are collecting debts will often call to “confirm your mailing address and phone number.” This is mostly an underhanded way for them to get you to agree that what they say is true. Just say that you don’t want to confirm anything over the phone. Write down your contact information only after making sure the information they already have is correct.
Do Not Ignore Legal Notifications
You can ignore a lot of collector calls, but you can’t ignore legal notices like a court summons. If you get papers saying you are being sued, you need to answer them. Talk to a lawyer and send in the right response before the deadline to keep from getting a default judgment.
Do Not Fall for Threats
Threats of lawsuits or even arrest are common ways for collectors to get people to pay. However, they can’t really arrest you for not paying your debt. They can also sue, but most of the time they only do that as a last resort. Don’t let false threats rush you into unwise choices. Know your rights.
Do Not Pay Debts You Don’t Owe
You are under no obligation to pay debts that don’t belong to you. Collectors frequently pursue the wrong people for debts or seek payment for non-existent debts. Never pay a collector unless they have provided complete proof the debt is yours and the amount is correct. Dispute debts that aren’t yours.
Interacting with collectors can be intimidating. But knowing your rights and what not to say helps ensure you don’t make missteps that hurt your position. Work with a credit counselor or lawyer if you are unsure how to respond to collection calls. And don’t be afraid to simply hang up – you are under no obligation to engage.
Learn About Your Legal Rights Under the Federal Fair Debt Collection Practices Act
The federal Fair Debt Collection Practices Act (FDCPA) (15 U.S.C. §§ 1692 and following) limits what collectors can and cant do. For instance, this law prohibits debt collectors from using obscene language or threatening you with violence if you dont pay. It also sets limits on when and where the collector can contact you, prohibits collectors from communicating with others about your debt, with a few exceptions, and more.
If the collector crosses the line and violates the law, you might be able to use the violation as leverage in settlement negotiations.
Tell the Collector You Can’t Afford to Pay (If You Can’t)
A collector doesnt have to stop trying to collect just because you cant pay. But telling collectors that you cant pay and giving them a short explanation of your financial difficulties might lead them to move on to other consumers. It might also prevent your file from being referred to litigation.
But be sure not to admit that you owe the debt or say anything that might restart an expired statute of limitations. Depending on your state, you might restart the statute of limitations if you make a partial payment on a debt or otherwise acknowledge that you owe a debt you havent been paying. A new promise to pay a debt might also revive the statute of limitations in some circumstances.
Do NOT Pay Collections Agencies | Debt Collectors EXPOSED
FAQ
How do you outsmart a debt collector?
6 steps for dealing with a debt collectorDon’t give in to pressure to pay on first contact. Gather the facts. Know your rights around communicating with debt collectors. Submit a complaint if the debt collector violates your rights. Never ignore a court summons for debt collection.
What is the 777 rule with debt collectors?
The 7-in-7 rule, also known as the 777 rule or 7×7 rule, is a guideline in debt collection that limits how often a debt collector can contact a person about a particular debt. In particular, it means that a debt collector can’t call a customer more than seven times in seven days about the same debt.
What should I not give to a collection agency?
The debt collector should never get your Social Security number, bank account number, or the value of your assets. You should only give them this information if you are making a payment.
What is the 11 word phrase to stop debt collectors?
To get debt collectors to stop calling and writing to you, say these 11 words: “Please stop all calls and contact with me immediately.” ” .