When debtors have missed a payment or so, it is normal for creditors to pass the burden of collection to an agency. The agency acts on behalf of the creditor by writing or calling the debtor, asking him to pay the obligation that is due. Agreeing to pay just to avoid calls from collection agents is a big mistake. When you get a call from a collection agency, make sure that the claim is legitimate. If you are unsure, you can either ask the agent to send you a written validation of the debt, or you can tell him that you would rather deal with your creditor. The Fair Debt Collection Practices Act (FDCPA) requires that all collection agencies provide debtors with proof of the debt upon request; this is known as "validation". If such a request was made, a collection agency cannot pursue with the collection unless it validates the debt. Written contracts executed in the State of Washington prescribes in six years beginning on the date the debt first becomes delinquent, except when partial payments are made in which case the prescriptive period does not reset. Open-ended accounts, such as credit cards and verbal contracts have different prescriptive periods. However, when you make a payment, acknowledge that a debt is yours, or agree to pay a debt collector, the time period allowed by law for the creditor to sue restarts. Once you have received validation of your debt, you can choose to deal with the collection agency or insist that you would rather deal with your creditor. You can write the collection agent a cease and desist letter if he refuses to stop contacting you even after you have told him not to contact you anymore because you will deal with the creditor. If the collection agent does not comply, you may file a complaint before the Federal Trade Commission (FTC). Take note that while the debt may be legitimate, the collection agency contacting you may not have the right to collect the debt. Surely you will want your payment applied to your debt. You wouldn’t want to give your hard earned money to a third party only to find out that you have to pay all over again because the collection agent has no authority to collect from the creditor. Assuming that you choose to deal with the collection agency because everything seems to be in order and there is no room for doubt, you can control the means of contact between you and the agency. Focus on the debt. Do not give the collection agent any personal information about your workplace or bank. You don't even have to explain why the debt is unpaid. You can rightfully demand that the collection agent contact you by mail or email only. Doing so lets you document all dealings with the collection agency and prove illegal collection methods. You can sue a collection agency for practices for violations of the FDCPA. Unless you tell the collection agent to stop contacting you, they will contact you. For this reason you have to be explicit about your choice. Regardless of the identity of the person contacting you, be up front in dealing with them. If you are dealing with the creditor, explain why you are unable to pay the full amount. Do not avoid his calls. I’m sure they have heard all possible excuses from debtors like you, and it is not believable that you are in the shower everytime he calls. By negotiating with the collection agency, you might end up paying lower than the original amount you owe. You can start negotiations by offering to pay one-third of your outstanding debt, or less if you cannot afford to pay one-third. It is not a secret that some collection agencies purchase debts from creditors for far less than its face value especially of the debt is old. In short, even if they settle for a lesser amount, they are still able to make a profit while making the deal seemingly sweet for you. This is why most collection agents extend settlement offers. Do not accept counter-offers unless you are sure that you are able to meet these payments. The danger of ignoring bills from your creditor is that he may take you to court to compel you to pay your outstanding obligation and lead to a string of embarrassing scenarios. If he gets a judgment in your favor, he may file an action to garnish your income and collect straight from your employer. You are given a limited time to contest the garnishment, and failure to respond in a timely manner means that your creditor will continue garnishing your income until such time that the payment of the debt and interests are satisfied. Ultimately, you will have to pay your debt, whether you choose to deal with the creditor or the collection agent. Pay because you want to relieve yourself from the debt, not to improve your credit rating because paying collection agencies will not improve your credit rating. It is wise to set aside an amount to settle the debt or liquidate some of your assets. Request a receipt everytime you make a payment. The receipt should state the amount you paid and your outstanding balance after payment. Your receipt will protect you from attempts to make double collection. This blog is not legal advice, but shares information on the law. We are living in hard times; people lose their jobs and many are struggling to make ends meet. Legalbargain.net gives back to society by sharing it’s knowledge and producing advocacy videos to put justice within the reach of those who believe justice is only for those with money.
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