Getting a call from a debt collector can be stressful and intimidating. You might be unsure whether to answer the call, what to say, or how to protect your rights. This guide will help you navigate debt collection communication effectively and understand your options.
Should You Answer Debt Collector Calls?
The decision of whether to answer a debt collector’s call depends on your specific situation Here are some factors to consider:
1. Validate the Debt:
- Ask for the name of the creditor, the amount of the debt, and the account number.
- If you don’t recognize the debt, request written validation within five days.
- You have 30 days to dispute the debt after receiving the validation notice.
2. Assess Your Financial Situation:
- If you can afford to pay the debt, consider negotiating a settlement or payment plan.
- If you can’t afford to pay, inform the collector of your situation and explore options like debt consolidation or bankruptcy.
3. Protect Your Rights:
- Be aware of your rights under the Fair Debt Collection Practices Act (FDCPA).
- Don’t share personal financial information unless you’re comfortable doing so.
- If the collector engages in harassment or abusive behavior, document the incidents and report them to the CFPB or FTC.
What to Do When You Answer a Debt Collector’s Call:
1. Stay Calm and Collected:
- It’s important to remain calm and polite, even if the collector is aggressive.
- Avoid getting angry or making threats, as this could escalate the situation.
2. Gather Information:
- Ask for the collector’s name, company, and contact information.
- Inquire about the debt, including the creditor, amount, and account number.
- If you don’t recognize the debt, request written validation within five days.
3. Assert Your Rights:
- Inform the collector that you’re aware of your rights under the FDCPA.
- If you don’t want them to contact you at your workplace or cell phone, tell them so.
- You can request that they only communicate with you in writing.
4. Explore Options:
- If you can afford to pay the debt, discuss a payment plan or settlement.
- If you can’t afford to pay, explain your situation and explore options like debt consolidation or bankruptcy.
5. Document Everything:
- Keep a record of all communication with the debt collector, including dates, times, and details of conversations.
- Save any voicemails or emails you receive from them.
What Not to Do When You Answer a Debt Collector’s Call:
- Don’t ignore the call, as this could lead to further collection efforts.
- Don’t admit to owing the debt or make promises you can’t keep.
- Don’t share personal financial information, such as your bank account or Social Security number, unless you’re comfortable doing so.
- Don’t get angry or make threats, as this could escalate the situation.
Additional Resources:
- Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-when-a-debt-collector-contacts-me-en-1695/
- Federal Trade Commission (FTC): https://consumer.ftc.gov/features/debt-collection
- National Consumer Law Center (NCLC): https://www.nclc.org/
Navigating debt collection communication can be challenging, but understanding your rights and options can help you manage the situation effectively. By staying calm, gathering information, asserting your rights, and exploring options, you can protect yourself and find a resolution that works for you.
Don’t Make a “Good Faith” Payment
Often, a debt collector will ask you to voluntarily make a minimal payment, not under a settlement agreement. The collector might say the payment shows youre acting in “good faith. You may believe that paying the collector now will stop them from suing you or improve your credit. Not true.
What this small payment will do is extend the statute of limitations. In most states, the statute of limitations clock starts ticking from the date you made the last payment. Every new payment, no matter how small, could restart the limitations period.
Write to the Collector to Request it Stop Contacting You (If That’s What You Want)
Subject to a few exceptions, under the federal FDCPA, a debt collector is required to comply with your request to cease all communication. Your request must be in writing. You can request in writing that the collection agency cease all communication with you by sending a letter via mail with return receipt requested (keep a copy). Additionally, if the debt collector accepts correspondence from customers electronically, you can send this letter through email or the collector’s website. (However, whether sending an electronic notification is as reliable as a written letter is unknown. So, its probably best to send an actual letter. ).
But think carefully before you tell a collector to cease communicating with you. A cease communication directive may not be in your best interest if you wish to monitor the status of the debt or communicate with the collector in order to work out a settlement. The collector cannot get in touch with you if you request that it cease communication, unless it is to serve you with a lawsuit or pursue other legal action. Remember that you have the option to request that the collector cease certain types of contact, such as to particular phone numbers or during particular hours of the day.
However, it might be a good idea to tell the collector to stop contacting you if you’re considering filing for bankruptcy. Once you file, an order called the “automatic stay” goes into place. The stay stops most collection calls, but collectors can still call before you file.