A debt collector is not the person you want to make a regular appearance in your life.
Their frequent phone calls, letters, and emails can have you living in fear and stressing about finances all day, every day.
However, understanding the debt collection process and your options for finding relief, you may realize it’s not as hard as you thought to deal with debt collectors.
Who Are Debt Collectors, and What Do They Do?
While there are debt collectors who may work with your original creditor such as a bank or credit card company, there are debt collectors who work for third party agencies working on behalf of the original creditor. If the debt collector is working for a third party agency , it is likely that the bill you owe is long past due.
Initially, a bank or credit card company will alert you that the time period allotted for paying a debt such as a loan or credit card statement is up. This may start as automated emails or calls, and then progress to phone calls from legitimate debt collectors who are working with the original creditor.
If you fail to respond to these messages, your debt is often moved through the debt collection process to third party debt collectors.
Should you continue to ignore getting your debt paid, your debt may then be transferred to a debt buyer, a company that purchases debts and has its own in-house debt collectors.
5 Tips for Dealing With Debt Collectors
The debt collection process can seem overwhelming and never ending, especially if you don’t have enough cash on hand to pay off your debt in one lump sum. However, there are things you can do to eliminate old debt and legally take care of what you owe.
1. Know Your Debt Collection Rights
All three kinds of debt collectors — internal collectors, third-party collectors and debt buyers — must follow the set of rules laid out in the Fair Debt Collection Practices Act (FDCPA).
The FDCPA restricts the actions debt collectors can take to collect…