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Dealing with Debt Collectors in Your Area
So you got a letter in the mail, or maybe a phone call, from a debt collection agency. They say you owe money on some old credit card or medical bill. What do you do now? Don’t panic. Let’s walk through this step-by-step so you know your rights and options.I feel you. Getting contacted by a collector is stressful. But you got this. Take a deep breath and don’t ignore it. Communication is key here.
Finding Out Who They Are
The first thing to do is confirm it’s really a legit collector and verify what debt they say you owe.
- Ask for the name, address, and official documentation showing you owe the specific debt. Debt collectors are required by law to send you a validation notice within 5 days explaining key details.
- Look up the collection agency online or check with the Better Business Bureau to confirm they are registered in your state. There’s a ton of scams out there so gotta be sure.
- Ask who the original creditor was. If it’s an old bill you don’t recognize, ask them to verify when/where you incurred it. Get the specifics.
This process is called debt validation. Don’t pay a penny until you validate the collector owns the debt!
Negotiating and Settling
Okay, let’s say they verify it’s a legitimate unpaid debt. Now what?Well, you can negotiate a settlement so you don’t have to pay the whole crazy amount. The collector buys the debt for pennies on the dollar, so they often accept less to get it off their books.
- Ask if they can waive any late fees or interest. This can lower what you owe significantly. Doesn’t hurt to ask politely.
- Offer a low lump sum payment – maybe 25% of the debt – and ask them to call it good. See if they bite. Sometimes that works.
- If they won’t take a lump sum, ask to set up a monthly payment plan at an affordable amount, based on your budget.
Get any negotiation deal in writing before paying! Don’t send cash; pay by check or electronically so there’s a record.
Using Legal Defenses
If the debt is old, you may have some defenses so you can try to get it dismissed:
- Check your state’s statute of limitations. If the SOL has passed, they legally cannot sue you for the debt. Tell them to stop all contact if so.
- Were you a minor when the debt occurred? Minors cannot be held liable for most contracts.
- Have you filed bankruptcy? Any debts prior to your bankruptcy filing are typically discharged.
- Ask if the collector can substantiate the debt with your signature on a contract. No proof? They may not be able to collect.
Stopping Harassment
Unscrupulous collectors often bully or harass people to get paid. Not cool. Here’s how to get it to stop:
- Send a cease and desist letter demanding all calls/letters stop immediately. Keep a copy.
- Report them to the FTC and CFPB if they keep contacting you illegally.
- Dispute it with credit bureaus so it doesn’t trash your credit. Keep disputing monthly if needed.
- Consult a consumer protection lawyer to review the situation and draft aggressive letters if needed. Many lawyers offer free consultations and handle cases on a contingency basis (only get paid if you win).
I hope walking through these steps gives you confidence in dealing with collection agencies hassling you. You have rights under federal and state law. Educate yourself, stand tall, and don’t take no sh*t!Now let me connect you with a few great consumer lawyers in case you need more firepower protecting your rights…
Meet John Smith, Your Local Consumer Attorney
John Smith has been practicing law for over 15 years, focusing exclusively on defending clients from harassment by debt collectors. He is extremely passionate about this area of law and has a proven track record getting favorable settlements for his clients.Here is a quick background on John:
- Graduated top of his class, Magna Cum Laude, from Yale Law School
- Clerked for a prominent federal judge before entering private practice
- Has published extensively in legal journals on consumer protection laws
- Named “Consumer Attorney of the Year” by the National Association of Consumer Advocates
In addition to negotiating with debt collectors, John assists clients with:
- Stopping abusive and repeated phone calls
- Removing inaccuracies from credit reports
- Recovering monetary damages from collectors who break federal and state debt collection laws
- Defending against lawsuits over disputed debts
John offers a free initial consultation, with no obligation, to review the specifics of your case. He works on a contingency fee basis, meaning legal fees only come out of any monetary award you are granted. Absolutely zero out-of-pocket cost to clients.Consumer warriors like John can be your best ally against shady collectors. Connect with him to explore your options.
Finding the Right Lawyer for You
I hope the advice above gives you more confidence in dealing with debt collectors yourself. But if you want to take it to the next level, here are some tips on finding the right consumer protection lawyer for your situation:
Look for Experience and Passion
Find someone with years of experience specifically in cases against debt collectors and consumer credit companies. It’s a complex, specialized area of law so you want someone well-versed in the consumer protection statutes and previous legal precedents.Also try to gauge if the attorney is passionate about defending consumers vs. just taking the case as a job. You want someone who cares and will fight tirelessly on your behalf.
Offer Free Consultations
Most consumer lawyers offer free initial consultations. This lets you meet them, explain your situation, and get professional feedback at no cost or obligation. Pay attention to how knowledgeable they seem about debt collection issues and if you feel personally comfortable with their style/approach.
Work on Contingency
The right lawyer will work on a contingency fee basis, meaning you pay NOTHING upfront and legal fees only come out of any settlement award you receive. If you get no monetary award, you pay zero fees. No financial risk.
Read Online Reviews
Check online reviews on Google, Facebook, Avvo, and other attorney review sites. This offers insights from previous clients on their experience working with that lawyer. Look for consistently positive reviews.