How to Deal with Nasty Creditors and Collection Agencies

Have you ever had a past due bill or collection account? If so, then you've probably been harassed by a debt collection agency. Although each person is responsible for repaying debts owed, this does not give debt collectors the right to be nasty or cruel. About a month ago, Dateline broadcasted a report about nasty collection agencies. Collectors would telephone debtors several times a day, and leave threatening messages. One debt collector even threaten to take a borrower's life is he didn't payback the money owed on a credit card. In hindsight, debt collectors are simply employees - people paid to make phone calls and negotiate a repayment plan. However, some debt collectors take their position a little too seriously, and take pleasure in intimidation. Yet, there are a number of ways to deal with nasty debt collectors and stop threatening telephone calls.

1. Record the Telephone Call: By law, debt collection agencies have the right to contact a person who owes money. On the flip side, they do not have the right to harass or bully the debtor. Many debt collection telephone representatives have lost their jobs due to overuse of power. To stop harassing telephone calls, simply notify the debt collector of your intentions to record the conversation. Some collectors are bold and leave nasty messages on voicemails. If this happens, contact the agency immediately and ask to speak with a department head or manager. If this doesn't work, consult an attorney. Sometimes, all it takes is a letter from a lawyer to stop threatening telephone calls and correspondences

2. Negotiate a Payment Plan: If the debt is legitimate, the only way to get the creditor or collection agency off your back is to repay the money. Due to various circumstances, repaying a debt may be difficult or impossible. Whatever your reasons, try and work out a repayment plan with the creditor or debt collector. Settle on a specific payment amount each week or month. If you submit regular payments, the debt collector may leave you alone.

3. Dispute a Debt: Have you ever had an old debt re-surface? Perhaps you filed bankruptcy or stopped making payments on a loan. After seven years, the debt is usually erased from your credit file. Occasionally, a debt recovery agency will purchase an old debt and attempt collection. Don't fall for this trick. The original creditor likely wrote-off the debt. If you acknowledge the old debt or negotiate a payment plan, the debt collection agency makes money. Instead, dispute the debt. Submit a written request and ask the collection agency to provide evidence that you owe the money. If the debt collector cannot provide verification, they must stop all collection attempts.