Getting a phone call from a debt collector can be very upsetting. Often, they ask for more money than you think you owe or call about a debt you may not remember. But whether or not you owe the debt, there are a few important steps you need to take to make sure you protect yourself.
Keep your cool
Keeping your cool on the phone with a debt collector can be extremely difficult, but it is very important. Even if the debt collector is polite, credit and debt is a sensitive topic, and you may feel like the debt collector is just out to get your money. And, well, they are!
But stay calm, be polite, and get all the information you can. Here is what you should find out:
- The name, phone number, and mailing address of the collection agency
- The name of the debt collector
- The original creditor (the person or company to whom you owe the debt)
- The amount of the debt
After you have that information, you can end the call. The debt collector will probably try to get you to make a payment, but you should make sure you actually owe the debt before you commit to making any payments. Inform the collector that you will be sending a request for verification (see below) so that you can make sure you owe this debt, and say goodbye.
And whatever you do, do not admit that you owe the debt. You do not have to admit that you owe a debt—even if you do—in order to pay or settle that debt. If you admit you owe it and later realize you do not, the debt collector could use your admission against you in court.
Record if you can
If you can, you should record all phone calls to or from a debt collector, as well as any voicemail messages.
First, if you reach any agreement with the debt collector, you will be able to prove you made that agreement. (Few debt collectors will confirm an agreement in writing.) Second, if the debt collector becomes abusive, lies, or uses profanity, you will have solid proof that you can use to enforce your rights in court.
Before you start recording your calls, check the RFCP guide to tape recording in all 50 states. If you have questions, call a consumer attorney in your state, who can tell you what the recording laws are in your state.
The cheapest and easiest way to record your calls is to get something like the http://www.amazon.com/Olympus-TP-7-Telephone-Recording-Device/dp/B000GU88CQOlympus phone recording device and plug it into an inexpensive voice recorder. Many music players will record, as well.
If something goes wrong—the debt collector refuses to honor an agreement or starts harassing you, for example—a recording could save you more than the cost of the equipment.
Before you try to record a debt collection call, make sure to give your equipment a couple of practice runs. After you make a recording, copy it to your computer and back it up, just in case. Do not forget to record any answering machine messages, as well.
Finally, if the debt collector calls anyone else, make sure you get recordings of those calls or answering machine messages from the recipients, as well.
Take careful notes
Whether or not you record your phone calls with a debt collector, you should take careful notes of every conversation. If you cannot record, your notes will be your only proof of what the debt collector said or agreed to. Take notes on every call and voicemail message as if you were writing a movie scriipt, and use as much detail as you can.
You can use this convenient collection communications log, available in Word format or PDF, to help you make sure you do not miss any important information.
If the debt collector calls anyone else, make sure they take notes, as well. Your goal should be to create an accurate record of every call, letter, and other communication, including what was said in each.
Request debt validation
After the first phone call, you should make the debt collector validate the debt. While you may recognize the debt, you need to make sure that the collection agency calling you actually has the right to collect the debt.
You must do this in writing, and you should do it within 30 days of the first communication from the debt collector. Requesting verification is easy. You can use this sample request for validation letter (PDF link) or look for other examples on the web.
The collection agency must send the information you request before it can do any more collecting. Don’t expect much, but at a bare minimum, you should expect to get some statements showing charges you made.
You should also expect some proof that the collection agency has the right to collect the debt, either because they were hired by the owner of the debt, or because they own the debt themselves. If you do not get something like that, you cannot know whether you will get credit for payments to the collection agency that is contacting you.
You should demand proof that the collector has the right to collect from you before you agree to make any payments.
Call a consumer rights lawyer
The Fair Debt Collection Practices Act offers consumers powerful protection, and many states have laws that offer additional protection. If a debt collector violates the FDCPA, they will be liable to you for up to $1,000 and for the emotional harm they cause. Most importantly, if you hire an attorney, the debt collector will have to pay your attorney for you if you win.
Because of this, most consumer attorneys are able to take FDCPA cases on full contingency—meaning you will not have to pay them unless they recover money for you.
To find a consumer lawyer in your state, use the lawyer database at the National Association of Consumer Advocates, a trade group for consumer rights lawyers. Enter your state and, under “Search by Areas and Level of Expertise,” look for a lawyer with experience in “Fair Debt Collection Practices.”
To find a consumer or bankruptcy lawyer, use the Caveat Emptor Consumer & Bankruptcy Lawyer Directory.
{ 3 comments… read them below or add one }
Ah keep my cool. I Wish!
my mother has passed away, and owes a credit card debt, I was an add on signer.
I can not pay this bill, how do I stop them calling
@freddieprice: See the last bit of advice: call a consumer lawyer.