It's scary when you find out one of your debts has been handed over to a collection agency. You're not sure what to expect, aside from harrassing phone calls and humiliation. It does not have to be that bad. You do have rights.
Hopefully, the cause of your debts being handed over to a collection agency is a temporary setback and you will be able to pay it back shortly. If you're worried about your debts being handed over to a collection agency but it hasn't happened yet, take my advice and call your creditors now. Try to make arrangements with them. Most are very understanding and would rather get the money from you, even slowly, than hand it over to a collection agency.
On the other hand, if your debt is already in the hands of a collection agency, you need to know how to handle the situation.
First, don't panic. It's not the end of the world.
Second, remember that it will no longer do you any good to contact the original creditor. They have nothing to do with the debt now.
Third, talk to the collection agency. See how they can work with you to get the debt paid. Work out a plan for either a lump sum or a series of payments and when the payments are to be made. Do this over the phone then send a copy to the collection agency in writing, keeping a copy for yourself.
Next, remember to send in some sort of payment as soon as possible to the collection agency. This will show them that you do intend to pay. NEVER SEND CASH! Make sure you make payments in something that can be tracked, such as a check or money order.
Collection agencies are subject to a code of ethics under the Fair Debt Collection Practices Act. They may not:
Site Map - Privacy Policy - Disclaimer
copyright © 2004-2008
