What You Risk By Talking To Collection Agencies and How to Protect Yourself

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What can go wrong when you talk with employees from collection agencies?

A lot.

It’s not to say that you shouldn’t communicate with employees from collection agencies when they contact you about a debt.  However, you should think very carefully about what you say to them before you open your mouth.

The Collection Agency Employees Are Not Your Friends

You need to remember that they are not your friends, they are not there to help you, and information that you give them to them – to borrow a police phrase, “can and will be used against you”.

Don’t tell them where you work.

They can start calling your employer and harassing you there.

Don’t tell them where you bank.

It makes it easier for them to pursue a judgement against you.

Don’t acknowledge the debt that they claim that you owe, when they call you.

Instead, tell them that you of course want to pay off any debts that you owe, but you will need them to mail you a copy of any documentation that they claim proves that you owe the debt, as well as a complete account history.

If you have a P.O. Box to give them, rather than your home address.

This is another layer of protection against harassment.

If You Want to Work Out a Payment Plan

If the debt is legitimate and you want to work out a payment plan with them, make sure of two things.

First, get the agreement in writing.

Do not proceed until you have this documentation.

Second, if you do reach an agreement, be consistent.

Make absolutely sure to make all of your payments on time.

If possible you should pay them with cashier’s checks – and save the receipt!

You are better off doing that then writing checks from your bank account. You do not want them to have access to your checking account information.

Also, make copies of all correspondence that you send to them.

Put CC: (Name of Debt Collection Agency) on the letter so they know that you made a copy.  Send all of your letters to them by certified mail with a return receipt request.

If they know that you are keeping track of all conversations and correspondence with them, they are much less likely to try to pull a fast one on you. And if you keep accurate records, and they do try something shady, they are less likely to get away with it.