6 things to keep in mind when dealing with a debt collector

As a consumer, we all dread calls by a debt collector asking about an outstanding payment on our credit card bills or medical debt or so on. It is best to not avoid a debt collector’s call, because firstly, it won't make the debt go away. Secondly, a collector has the right to update your credit report with collections, which can decrease your credit score.

If you can figure out a payment option with the creditor itself, great if you can’t, working with the collector is a good option. Read customer reviews of Cedar financial to know how a collector works. They don’t harass you or threaten you into paying.

Still, it is best to be an informed citizen, so that you are best equipped to deal with a debt collector.

Here are some tips that can help you deal with collectors.

Educate yourself by knowing consumer rights

As a debtor, you have rights that keep you safe from misconduct. A reputable collection firm will never misuse their power, but a scammer or dishonest collector might.

If you want to keep yourself safe, it is best to educate yourself about the rights. For instance, most collection laws state that a collector cannot call the delinquent late nights or early mornings, if a collector does, you can note it for further use or complaint about the misconduct.

Ignoring collection calls or lawsuits is not smart

If you think you can ignore a debt collector’s attempt to contact you, you are wrong. Ignoring their calls or emails will only make the situation worse. It is because it will make them take extreme measure like updating your credit report with collection or call your family or call you at your office.

The same goes for a lawsuit. If the collector or creditor serves you with a court summons, go to it and defend yourself.

Validate the debt

It is best practice to verify the debt before agreeing to pay the debt or take responsibility for it. A collector will tell you the procedure for the same, which is sending a written request for debt validation within 30 days of initial contact with the debt collector.

Make sure you look closely at the documents provided, if you still have debts, talk to an attorney on how to proceed further.

Statute of limitation

Statute of limitation is the limit on the collection period of debt. When a debt collector calls you, make sure you check its statute of limitation. A collector cannot collect the debt after its period is over. In some circumstances they can, which a lawyer can inform you better.

Documentation is crucial

It is best to keep all debt related documents as long as possible. Also, whenever you get a call or mail from a debtor, make a record of it for future use.

A written contract is must

If you negotiate with a debt collector, make sure to get the new agreement in writing with signatures from all parties involved. If you don’t have a written agreement, it can any party can go back on their word.

It is best to pay off the debt as quickly as you can. If you are in financial crisis, filing for bankruptcy is also an option.

Jackson Gilbert is a Blogger. With his skills, he has been helping fellow marketers and brands worldwide. When not glued to his laptop, he can be found making travel plans that rarely happen.