Dealing with debt collectors

Dealing with debt collectors is difficult for many reasons, but debtors have little choice. While debt collectors may violate the Fair Debt Collection Practices Act, suing those debt collectors does not affect the underlying debt. Even if a debtor wins a FDCPA lawsuit, he or she still owes the debt.

To salvage credit ratings and stop collection activity, paying the debt is almost always the best course, if the debtor owes the debt and can afford to do so. On the other hand, the consumer may not owe the debt. He or she may not actually owe the debt because of identity theft, because the debt was already paid, or due to a case of mistaken identity. This is where dealing with debt collectors can get especially difficult, but I think consumers can still get results with a bit of work, documentation, and follow-through.

I would guess that many debtors claim they do not owe a debt in hopes of getting collectors to leave them alone. So for someone who really does not owe the debt, it can be much more difficult to get any cooperation. This is unfortunate, as the FDCPA is designed to protect non-debtor consumers as well as debtors.

From my own experience, it seems like collectors are much more likely to listen once a consumer has hired me to represent them. Unfortunately, this results in expense for the innocent debtor. But I think a few simple steps by any consumer will help to get similar results, even if not in every case.

Most importantly, nothing is much good as evidence unless it is in writing. If you hope to convince a debt collector you do not owe a debt, there must be some proof. This can take various forms.

For example, if your identity was stolen, take all the necessary steps. File a police report, put together an identity theft affidavit, put a fraud alert on each of your credit reports, and challenge any related negative marks on your credit reports. Once you have that information, send it to the debt collection company with a cover letter explaining the situation, and include your file number.

If you already paid the debt, you should have insisted on written confirmation that the debt was satisfied in full. If you did not, you may have to track down the original debt collector to get that written confirmation. A certified letter might help you get their attention. If that doesn’t work, you should have some payment records from when you paid the debt. That should help you start making your case, at least. It may take some creativity from there.

Cases of mistaken identity may be more easy to prove in many cases, and since debt collectors know that mistaken identity is not exactly rare, they should be more helpful. It should be as simple as providing a driver’s license and some additional identifying information.

Be persistent, and follow up when you say you will. Record conversations (with or without permission, as permitted in your state) to get a record of any agreements or harassment. As a last resort, hire an attorney to help you make your case. Most importantly, if you are sued, deal with the lawsuit. If you do not submit a written answer in the time period allowed, you may lose the lawsuit. Simply calling the debt collector or opposing attorney is not sufficient.

A final warning: be careful what information you give to a debt collector. Give only as much as you need to. The last thing you want is a careless (or dishonest) debt collector subjecting you to another round of identity theft.