Mistakes You Should Not Make with Debt Collectors

csmart By csmart, 11th May 2012 | Follow this author | RSS Feed
Posted in Wikinut>News>Off Beat

There are several common mistakes that individuals make with debt collectors that could have serious legal ramifications. Read this article and learn how to avoid these mistakes.

Debt Collection

I am not a financial advisor or an attorney but I have a bit of experience with Debt collectors from my personal experience as well as from people I know. To avoid legal consequences there are things that you shouldn't do when dealing with a debt collector.

1) Do not make promises!

You should never make promises to a debt collector. When you speak to debt collectors over the phone, the conversation is almost always recorded; therefore, you should be careful not to make any promises. For instance, if a debt collector calls you and you tell them you will pay them on Monday but you don't then that could be used against you. Furthermore, some debt collectors could assess a late or non-payment fee and that telephone conversation could be used against you in court. When speaking to a debt collector you should avoid making promises and if a collector asks you when you are going to pay you should say "I don't have any money" or "I can't make any guarantees." If possible, when your debt collector calls you shouldn't answer the phone.

2) Do not give your bank information!

If you are ready to make a payment to a debt collector you should not make that payment from your bank account. The reason for this because a debt collector could debit your bank account for more than you owe. The only way you should pay a debt collector is through a money transfer service such as Western Union or Money Gram.

3) Do not forget to collect names and documentation!

When speaking to a debt collector over the phone you should always ask the full name and job title of the person you spoke to. If you and a debt collector makes a settlement over the phone you should ask for documentation of the settlement. For example, if your debt is $140 and the debt collector settles for $80, you should ask for documentation of this settlement and let the collector know you are not going to send payment until you get the document. I would suggest you purchase a fax machine so that you could have the debt collector fax the document to you. After you make a payment make sure you also get a document saying that your debt is paid off.

4) Do not ignore a court summons!

If you get a court summons you should not ignore it. Many people I know who have received court summonses from debt collectors have ignored it feeling that they don't have any defense. Even if you feel that you don't have any defense you should go to court for if you don't show up the judge could enter a default judgement meaning that the the debt collector (plaintiff) will be awarded the sum of money they sued for. The amount of of money the debt collector sued for could be significantly higher than what you actually owe and it would definitely include attorney fees. Not only that, in some states if you fail to appear in court even for a civil case you could be fined and/or jailed.

Tags

Debt, Debt Calculator, Debt Settlement, Debts

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author avatar csmart
I write about whatever I am interested in. I want to share my knowledge with you. If my writing helps you become a better person, then I know I did my job.

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