Stop Bill Collectors Dead in Their Tracks, IRED

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Stop Bill Collectors Dead in Their Tracks

By W. J. Fontenote

Oh no. The worst has happened. You've lost your job, or you've gotten sick and can't work, or your work schedule has been cut back, or any number of things that cause your income to be reduced. Bills are piling up and the bill collectors are circling like hungry sharks. What in the world are you going to do to handle this problem?

Well, first of all, take a deep breath and relax. There are no debtor prisons in the United States. There is no shame in not being able to pay all your bills. If you think logically about the circumstances, you can get the situation under control.

The first thing you should do is to check the bill that the collector says that you owe. They could be wrong about the creditor and/or the amount. You usually have 30 days to respond to their letter before they start the collection activities.

If you do owe what they say, you have to realize that bill collectors are tough, professional negotiators that will generally use aggressive tactics to collect on a bill. After all, they get paid only when they collect. However, there are rules that they must follow according the laws of this country and your state

Learn your rights.

By law, the bill collectors must play fair. Learn you rights by going to the Federal Trade Commission web site. There is a wealth of information about The Fair Debt Collection Practices Act on this web site. Also, many states have their own debt collection laws. Check with your state on the existing laws. They may be more stringent than the Federal law.

One thing you can do is to tell them not to call you at home or at work. Tell them that you deal only with the written word and that you will contact them to negotiate a payment. This should stop them from calling.

Get your bills in order

You must pay necessities first. You have to have a place to live, utilities, telephone, an automobile, gasoline, auto insurance, etc. They have to be paid first. Don't ever get in the position of not being able to pay your necessary bills.

See what is left and spit it among your bills

Never pay what you can't afford. Offer what you can to each collector and tell them to take it or leave it. Don't send postdated checks or allow them to draft on your checking account. Send them a check for the amount and ask them to send a receipt. You cannot afford to trust their good will.

Don't ramble on with the collectors

Don't say any more than you have to. Don't give them any sob stories, no personal information, no life history. It won't affect their collection goals, and what is worse is that they can use all of this information against you to collect the debt. Remember to say as little as possible and stay with the facts.

Be a cool dude

Stay calm and quiet as you talk with the collector, No matter what they say, stick to your story and don't get diverted. The collectors will try to rattle you and get you to say things that will help them. The more you stay in control, the more likely the negotiations will go your way.

Tape the call if you can, but be sure and follow the laws of your state. Tell them you are taping and they will act nice.

Keep meticulous records

Make sure that you keep notes of all calls. Write down the date, time, name of the collector, name of the collection agency, and what the final agreement was. Try very hard to keep the agreement since it will help you in future negotiations.

File all correspondence neatly so you can keep track of the details. Don't try to remember things because you memory will fail you when you need it the most.

Get your credit cleared

Before you make a final agreement, try to get the collector to clear up your credit. Ask them to delete any negative information that they have put in your credit report. Tell them that a final agreement is contingent on this action. Some creditors will do this and some won't do it. Hold out as long as possible for the best deal. As a minimum, the collector must up date your credit report to show that it is paid when you complete all payments.

Don't be in a big hurry to settle

Don't let the collector rush you. They will try to get you to send money immediately using check by phone or credit card. Don't do it. Take your time. Make them send you a confirmation of the agreement in writing before you send them anything. This will keep them honest.

It is also wise to talk to them at the end of the month since a collector's monthly commission is based on what they collected for the month. They may be more flexible since they are trying to maximize their commissions for the month

Remember that this is just money your dealing with

This whole situation can be very stressful for you. But it is not life threating and it won't kill you. This is just a business transaction and it will be taken care of with time. This too will pass.

GOOD LUCK AND BE HAPPY

W.J. Fontenote
William Jarrell Fontenote succumbed to cancer on February 12, 2006. Rest in Peace, Beloved Friend.

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