It is no secret that debt collections have their niche in today’s economy. With more people behind on payments and accounts sitting delinquent for months on end, many lenders are turning to third party collection agencies more than ever before. As a debtor, it is important you know your rights and how to handle these calls when they start pouring in.
One mistake people often make is ignoring debt collection calls. It is important you answer them at least once to find out more information. You could be unaware that an account is even in collection, or that your credit score is at risk. Ask the debt collector to identify who they are, which lender they are representing, the amount of debt claimed to be owed and to send you a written verification of this debt. The written verification of the debt is important for two reasons (1) it provides you with proof of your debt liability, and (2) it buys you at least 30 days to take the next step towards debt resolution.
Once you have completed the questioning with the credit collector, contact your lender directly. It is advised that you not resolve debts with a third party company without speaking to your lender first. There are plenty of debt collection scams operating to take advantage of unsuspecting consumers, and verifying the information with your lender directly can reduce the likelihood you experience this trouble. Further, you may be able to work out a repayment plan with your lender and never need to deal with the middle man.
If debt collectors become harassing, you have assets at risk or are unable to reach an agreement with your lender directly, contact a bankruptcy attorney. Having a Fort Worth bankruptcy attorney file a petition on your behalf can put an immediate stop to debt collections while you work to resolve your debts through a legally mediated channel.