One day you may be dealing with a debt collection agency, perhaps due to illness, unemployment, or an unexpected economic meltdown. This guide does not tell you how to pay off the debts you have incurred, but how to manage the phone calls so that you and the employee of the collection agency are both satisfied.
Steps
Step 1. Prepare a complete speech and keep a copy near each phone in the house
It begins like this: “Before continuing, I must tell you that I am absolutely willing to cooperate. But if you threaten me, or be aggressive, rude, disrespectful, I will hang up and never take your calls again. Agree?" If they begin to say: "Lord, we don't work like this …" let them listen and reread the sentence in a calm and well-articulated voice until they accept your rules.
Step 2. Find out about them
The next step is to say, "Before you start, you have to tell me your name, company name and phone number." Many employees get agitated feeling calm and confident. They might say, "I'll write that she doesn't cooperate" or something like that. You reply that it is your intention not to cooperate, but you are also asking for their cooperation. Write what they tell you, with the time and date of the call. Put this information in a file and save it, as this could take a long time.
Step 3. Record the phone call
In many countries, calls can be recorded without informing anyone. In others, both parties must be informed of the registration. They will usually tell you that they intend to record the conversation for the purpose of "checking the quality of service". This usually suffices as a consent to registration. Check your country's legislation before registering.
Step 4. Ask for proof of your debt
The agency that contacted you, by phone or by post, must send you a letter of validation of the debt within five days, informing you that you have the right to contest it within thirty days. If you don't, the collection agency will assume that your debt is valid. To contest you must send a written request for validation. If you do, they will not be able to continue asking you to pay the debt until the dispute is resolved.
- Send the validation request by registered letter with acknowledgment of receipt, in order to have proof that it has been sent and that it has been received. See the example below.
- Whatever you do, never admit debt. He keeps repeating: “I want to see the written tests. I don't recognize this debt”. This is a precaution for phantom debt, which is when agencies try to get you to pay off debts that you are not responsible for.
Step 5. Check the debt
In response to your request, the agency must send you the following documents:
- Proof that they have taken over the debt from the real creditor
- A copy of the original contract with your creditor
- Documentation from the creditor that you owe a debt
Step 6. Check the documentation
If it does not provide sufficient evidence, write another letter stating that they are violating the law and requesting that all attempts be stopped, alerting the protest office, or you will sue them. If they don't stop, go to the justice of the peace. If they send you proper documentation, check the statute of limitations to prove that you are no longer liable for the debt. The statute of limitations essentially defines how much time must pass from the debt contracting before the agency's right to legally recover the debt expires. Each country has different rules on when the period begins, how long it lasts and what can extend the recovery period, so you need to consult the codes or call a lawyer. If you are not responsible for the debt, send a written notice explaining it, asking them to stop bothering you or you will take legal action.
Step 7. Keep in mind an amount that you can definitely give them each month, no matter how small it is
They will probably ask for more. Don't give in and explain that these are your chances, and you can't do more. Always explain that you want to pay off the debt but, at the moment, this is what you can do. If they agree, tell them to call back in six months to see if it will be possible to increase the rate. Do not accept withdrawals from your checking account.
Step 8. Make sure they forego recovering interest on your debt
Tell him to stop calling you except to answer a call from you.
Step 9. When they accept your payment proposal, ask them to fax you your balance and terms accepted, which you will sign and fax back
Make sure you read the notes carefully before signing, as this is a contract that binds you legally (and ethically).
Method 1 of 1: Example of a Letter of Validation of Debt
For the attention of xxx Address Postcode
Dear xxx agency, This is to answer the phone call / letter received from you on xxx. In compliance with my rights under current debt collection legislation, I request proof of debt. Please note that this letter is not intended to refuse payment, but to require that I be provided with proof that I have a legal obligation to you.
You are therefore warned that, in case of no reply, I will fill in a complaint to the competent Public Prosecutor. All necessary judicial initiatives will be undertaken, both in civil and criminal matters.
In witness whereof, Name and Surname Date Place
Advice
- Write down everything, the date and time of the call, the employee's details, what they want, what you offer, etc.
- Debt collection agencies start acting in a much more sensible way if they think they can get something back. So, if the debt is valid, start by saying that you have received a large check, or a tax refund, and that you want to settle the debt. Then explain that you have other, preferably larger, and more important debts, such as rent, bills, etc., and how much of those debts you have left to pay. Once this is clarified, you can ask for education and certain benefits.
- Record the call: If they are aggressive despite your reasonable attempts to resolve the issue, you can use this against them later.
- You need to keep your voice calm, reasonable and well articulated. Yelling, insulting, and doing such things will make them doubt that you want to help pay off the debt.
- Be very careful not to make payments if the statute of limitations has expired or are about to expire, because you risk reactivating the practice and having to pay the entire amount again even if you have agreed for a smaller amount.
- You can't always win, sometimes they won't recognize your non-debt. If so, write a memoir to prove your good faith. When they return the credit to the creditor, send a copy to both of them, requesting that your name be removed from the list of bad payers.
- If they approach you in a way that you find somewhat questionable, notify them once, as mentioned above. The second time, ask to speak to a supervisor. When they pass it to you, start over from step 1.
- Many times the employees don't give their real name. One way to ascertain this is to send the registered letter with acknowledgment of receipt addressed to that specific name. If the signature on the receipt is the same, it must be that person, otherwise it is the crime of fraud.
