How to deal with collection calls

By Preston Andrews

If you are in debt and have been having trouble when it comes to making your monthly payments, then there is a good chance that you will begin receiving collection calls from your lenders if you have not already. These phone calls can be extremely stressful and downright embarrassing.

Not only will these collections agents call your home or personal cell phone to harass you about your lack of payment, but many will also contact your place of employment as a way of reaching you there. So how do you properly deal with collection calls? First and foremost, it is important to know your rights.

Know the laws in place to protect you

Specifically, if you feel as though you have been threatened, harassed, or used downright obscene language against by a debt collector, you should immediately contact the Federal Trade Commission to make a report. These actions are against the law and you are protected by the regulations set forth by the Trade Commission. Keep in mind that filing a report may stop the phone calls, but this will not erase the debt that you owe and you will likely still receive collections letters.

Reach an agreement

If you have no grounds to report the debt collectors to the FTC, however, there are some other steps that you can take to end the collection calls once and for all. Obviously, if you can afford to pay off your debt, do so as soon as possible in order to avoid future late payment fees and accrued interest. If you cannot pay off your debt, however, ask to speak to somebody about setting up a payment plan. Most debt collection calls will stop once you begin making repayments on the money you owe, even if those repayments are very small.

Make a formal request

If you still receive collection calls, you should send a written letter to the collection agency acknowledging the debt that you owe and requesting for the calls to be stopped. Upon receiving this letter, the law states that debt collectors must stop calling you since it has been established that you are well aware of the debt that you owe and are not trying to deny it. If the calls still do not stop after the institution has received your letter, be sure to file a formal report with the FTC as soon as possible.

Consider filing for bankruptcy

Finally, if all else fails and you do not have any feasible way of paying the debt back, one option that you may want to consider is that of filing for bankruptcy. This is often a last resort for those who have fallen into financial hardship and need a way to negotiate with the lenders that they owe money to. If you are considering this, be sure to meet with a financial advisor to find out whether or not this would be the best option for you based on your specific financial situation.

About the author: This post was written by Preston Andrews, who has had to deal with debt collectors in the past. André Gabbay et Associés Inc. helped him through that problem, and offer help with consumers proposal as well.

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