Are collectors calling you day and night?
Are you having trouble keeping up with your bills?
Are you drowning in debt
and living in fear of your creditors?
If you answered YES to any of the above questions OR you are thinking about bankruptcy, credit
counseling, debt management plans, home equity loans or debt settlement; this
information is for YOU!
This section of our website is designed to inform you about the collection
process and the SCARE
TACTICS used by debt collectors so that you don't have to live in FEAR. Your
biggest weapon in the battle against debt collectors is KNOWLEDGE. Study the
following information closely and you will soon realize that there is really NOTHING to fear in the
collection process and you will be armed to do battle with even the best debt
Ways to Deal with Collectors
Do not answer creditor
or collection calls!
Talking to your creditors can only harm the negotiation process
and can make things more difficult for your settlement company. Other than a
quick phone call to your creditors, after they start calling you, to inform
them of your situation (usually a month or two after you stop paying your
bills) and possibly a short monthly follow up call, there is really no reason
to talk to them.
Any communication should be initiated by YOU. Use a call script
"I realize your company has been trying to get in contact
with me. I am in a tough financial situation right now because I lost my job
and I am struggling just to keep food on my family's table. I am not able to
make ANY financial commitments right now but I will be back in touch with you
in a few weeks to update you on my situation."
The credit card company will note your account and proceed with
their normal collection process. This may not stop them from harassing you and
trying to get you to make a payment but it can definitely help. Call back about
once a month to update them on your situation.
Get a "pay per use" cell phone.
the number your creditors have on file to the new cell phone number. This will
enable you to call your creditors from the number they have on file and you
will be able to turn off your phone so you are not bothered by their harassing
calls. You will usually be able to call your new cell phone to retrieve your
messages from another phone so you don't incur any unnecessary charges.
Keep a call log and record collector's calls.
get harassing phone calls and you feel like a collector is breaking the rules,
you should record your calls and keep a log. You can easily file a counter
claim in court and receive a $1000 judgment even if you can't prove actual
damages. If you can prove that you have been damaged, you can file a claim in
the amount of the debt you owe or more and can end up winning in court. Make
sure to check into the laws in your state to see if you need to inform the
party you are recording. If you are just looking to stop the harassment, inform
the collector you are recording the call and keeping a call log (this should
stop most of the harassment).
Change your number or screen your calls by using an answering
machine or Caller ID.
Do not call your creditors from any number
that you don't want them to have. They have systems that are capable of
detecting the number you call from and disabling call screening.
Hang up when they call. If a collector catches you off guard and
gets you on the phone, don't be afraid to just hang up. If they
already know your situation, there is no reason to talk to them. It's not rude
for you to hang up on them; it's rude of them to continue calling you when they
already know your financial situation. Don't waste your time talking to them or
trying to explain anything. Hang up, don't give into their high pressure
tactics and let them move on to their next victim.
If creditors call you at work, use a script like the following:
"I am not allowed to receive personal calls at work. Your
calls are interfering with my ability to do my job. Please do not call me here
anymore or I will file a formal complaint with the State Attorney General and
the Federal Trade Commission."
If calls continue, follow up and file complaints with these
There are rules and regulations prescribed by the federal
government that collectors are supposed to follow but many collectors
completely disregard them. Make sure you know your rights. Become familiar with the Fair
Debt Collection Practices Act (FDCPA) and learn what these collectors can
and can't do. If they break the rules, report them or turn the table and file a
lawsuit against them. For more information on the Fair Debt
Collection Practices Act (FDCPA) visit our Links page or click here
It is not always a good idea to tell your creditors that you have
joined a settlement program right away. Different credit card companies have
different policies and it’s usually best to let your settlement company
inform them when they decide the time is right.
Everyone’s situation is different and not all methods presented will
work 100% of the time, the information provided is designed to help you
understand the process and arm you with knowledge. The information provided is
not intended to give anyone legal advice, and if you feel you need to speak
with an attorney for professional advice them please contact an attorney and
get legal advice. Most attorneys will offer a free consultation.
To download a copy of Scare
tactics ---Ways to Deal with Collectors please click the link below