How are you going to cope with bill collectors, collection agencies, unwanted phone calls?

WHAT ABOUT THOSE BILL COLLECTORS?

The following is based on information taken from H L Saffell's book: "REPAIR YOUR CREDIT WITH LITTLE KNOWN SECRETS the scam artists hope you don't find out about". If you would like a copy for your own, CLICK HERE.

WHAT CAN YOU DO ABOUT BILL COLLECTORS?

Or the collection agencies as we call them. If you are one of those unfortunates who must deal with these fellows bear in mind that preparation is the name of the game. You must prepare yourself for their tactics and make a case for the settlement you wish to make. Bill collectors only get paid when they collect; so the more they can get the more they earn. Here's where you have to stand firm and not let them get you to repay the entire debt.

Your weapons for dealing with the collection agency is to state that you want to be fair to all of your debtors, but you only have so much money to give to each. And if all of them decided to use a collection agency to get their money you might be forced into bankruptcy. That last word will get their attention.

If you need to deal with the bill collector, then address him courteously, pointing out the reasons why you were late and the settlement you wish to make. You must sound convincing to get his attention. If the bill collector refuses to go along with your idea, make sure you leave him with a good taste in everyone's mouth. That is, you've treated him with respect and appreciate the reception he gave you.

If you have his supervisor's name, you can write a letter of commendation which will shortly be followed by a Letter of Restrictive Endorsement. Compliment everyone and include a cashier's check for 50-60% of what you owe. Type the terms on the check, such as the negative entry (mention the entry by name) will be completely erased from your credit file. If they accept and the check is cashed, you now have proof that you may, if needed, show to one and all.

To make certain the item has been removed from your record, contact the credit bureaus again with a letter of dispute and follow through in the usual fashion.

Suppose the collection agency won't accept the above cashier's check. Suppose the collection agency says they are going to take you to court to collect. Then your next recourse is to work out a payment plan which doesn't last more than 12 months. Tell the bill collector (collection agency) that you'd much rather settle the matter before it goes any further. Both of you can avoid a lot of trouble by making a reasonable settlement.

Still the bill collector is not satisfied. He wants a big percentage of the debt paid immediately with a payment plan to follow. Don't believe it. Just repeat your offer of reasonable payments over a 11 or 12 month period. Don't ask for any longer than that because the creditors will grow uncomfortable and may not approve it.

Why make an offer at all? You want to prevent your having to apply for bankruptcy. What's more, the creditor will be happier to deal with a payment plan which pays off the debt. He gets nothing if you go bankrupt. And a bankruptcy on your record will be the worst thing you can do.

But the bill collector still remains dissatisfied and begins using questionable tactics and threats on you. In this case contact and write one of the following offices of the Federal Trade Commission:

Federal Trade Commission, Washington DC 20580 202-523-3598

Federal Trade Commission, 150 Causeway St, Boston, MA 02114 617-223-6621

Federal Trade Commission, 915 Second Ave, Seattle, WA 98174 206-442-4655

Federal Trade Commission, 26 Federal Plaza, New York, NY 10278 212-264-1207

These offices are for unsecured debts owed to businesses other than banks. You can also write to the Attorney General of your state. Tell then both, in writing, how the bill collector treated you. You'll get some action then. You can also get action against bank bill collectors by contacting the Attorney General's office of your state.

Bill collectors are not allowed to harass you if you don't want them to do so. The Fair Debt Collection Act gives you the right to write the collection agency for whom the bill collector works and tell them to stop bothering you. You usually use this right when things get out of hand. You have the right to:

1. Stop all future collection attempts.

2. Prohibit bill collector from calling you at work.

3. Prohibit late calls to your home at night.

4. Make certain the money you do pay goes to the debt you want paid.

The letter must contain material which relates to your ability to pay, when and what you will be able to pay. State the abuse the collector has inflicted on you and your family and make a specific demand that the collector stop contacting you. You must be tough and stick to your guns at this point. Don't let them get away with it, The law is strictly on your side!

All of the above will work on the bill collector but not the original debtor. The law mentioned above protects you only from the bill collector being overly zealous. The creditor can take up contacts with you without worry. Normally he doesn't do this when the collection agency tells him they couldn't collect. He just files it away for the future. And usually forgets about it. Unless one fine day he sees you driving an expensive car.

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