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Home > Blog > How to handle debt collection phone calls
Nov 6, 2018
How to handle debt collection phone calls

payment-overdueNo one likes to receive phone calls from their creditors, but if circumstances have made it impossible to pay your bills on time, then the calls are going to come sooner or later. However, just because you have fallen behind on your payments doesn’t mean that debt collection phone calls have to be an entirely unpleasant or unproductive experience.

Negotiate

Ideally, you should be able to end the debt collection process by negotiating a repayment schedule you can meet. Try to avoid having the debt sold to a third party for collection. The original creditor will have negotiating flexibility that a third party collector will not.

Know your rights

Citizens of the U.K. have rights and protections under the law against unreasonable debt collection practices. However, you will have no way of determining whether the debt collector is respecting your rights unless you first know what they are. Regulations vary depending on location and circumstances, but contact a consumer protection bureau or public library to find out what conduct is permissible in collecting a debt.

Stay aware

There is always the temptation to just ignore debt collection calls in hopes they will somehow go away. They won’t. The longer you fail to respond the more the law works against you. This is especially true if the debt is not yours or is inaccurate. Trying to avoid acknowledging the debt collection process make you look like you are guilty. Staying on top of the process is necessary if you are going to have any chance of settling the debt on terms favorable to you.

Keep records

During a debt collection process, do not put your faith in your memory or the honesty of the creditor. Either could fail you at any time. The best defense you have against unjust or illegal debt collection procedures is to have everything that happened in writing. Save all the correspondence and write down anything of importance that happens in a phone call right after it occurs. Get the name of the person calling you. If the person calling is unusually abusive, consider recording the calls.

Don’t be overly co-operative

Just because you owe money doesn’t mean your creditor can demand any information they like from you. Your bank account numbers or other personal financial information is not something you have to give them just because they ask. They are the ones claiming you owe them money, so make them document it if they can. Don’t give them information that will only make it easier to seize your funds against your will or in a way you wouldn’t choose.

Sometimes people feel guilty about their debts and that makes them accept abusive treatment because they think they deserve it. But falling behind on your bills is something that can happen to anyone, sometimes for reasons over which you have no control. Through negotiation, awareness of your rights, good record keeping and a self-defensive engagement with the process, it is possible to handle debt collection phone calls in a manner that ends well for everyone involved.

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