30 Nov 3 Things You Need to Know When Dealing with Debt Collectors
Posted at 6:45 pm in Collections by jlbworks
Collections Nashville, TN – Clarksville, TN
Brian E. Price, Attorney at Law
This is intended for informational purposes only and is not meant to be legal advice.
- VERIFY THE DEBT Under the Fair Debt Collection Practices Act, a person has the right to ask for verification for a debt that is attempted to be collected. Within 30 days of the fist communication from the debt collector, the person must send a written request to verify the debt. This is to ensure that the debt is actually valid and the person attempting to collect actually has the legal right to collect the debt. Upon receiving the request to verify the debt the debt collector must provide the information or cease attempts to collect the debt.
Debts are constantly being bought and sold. And just like other items, debts are stolen as well. Dishonest debt collectors have been known to contact debtors using stolen lists of debts. The bad news is that if a consumer pays the debt to a dishonest debt collector then the debt is still owed. Thus, someone may end up paying twice for the same debt.
- GET EVERYTHING IN WRITING Be sure that any negotiated terms are in writing. A collection agent may say one thing over the phone but then deny ever making the statement in the event of a dispute. And don’t rely on the collection agency having a recording of the conversation because those recordings tend to disappear.
- BANK ACCOUNT INFORMATION A collection agent can clean out your account once he or she has access to your debit card or bank account. If there is a dispute, then it might take several months to get the matter cleared up. More than likely, the money will never be recovered. The debt collection agency has the money and they will be in no hurry to give the money back. Instead, pay with a money order. They are very inexpensive and easy to obtain.