Know the process.

Typically, collection agencies contact you because your name has been used to charge up a debt that was left unpaid for several months (or longer, if the payment period is longer). Generally, creditors wait several pay periods before resorting to collection agencies, although this varies depending on the debt and the locale—creditors in areas with short statutes of limitations generally go to collections and court faster than those in states with long statutes.

Know your rights.

Make sure you know both the federal Fair Debt Collection Practices Act and your own state laws regarding what rights you have. These include when and how you can and cannot be contacted, what that contact can and cannot include, required information you must receive, and investigating to ensure that your debt really is yours. If there is an argument over whether or not someone else charged a debt in your name, the collection agency is required to investigate the possibility.

Get information

Find out specific information. You are allowed—and in fact legally entitled—to ask as many questions as you want, as many times as you want, regarding your debts. Initial contact is often via pre-recorded phone messages, but once you do speak to a person, find out the names of the person to whom you are speaking (and every person to whom you speak in the future, should that person change), who claims the debt, the agency’s name, contact information for the agency, and how much they believe you owe them. Most of this information should be provided to you in a written statement within a few days of the initial call.

Assert your rights.

This is the extension that is why the first 3 steps are necessary. When you know your rights accurately, you are in a much better position to assert them. You have the right to ask them not to phone you, and to request a certain type of contact—fax, email, etc. The collector is not required to abide your particular type of preferred contact, but IS required to abide by your requests to NOT contact in a specific manner. You also have the right to tell a harassing agency not to contact you at all. They must abide by this, although they are also allowed 1 future contact to alert you to their intended proceedings.

Document everything.

This should be done with all financial information, particularly if the debt is contested in some way. This is also a good reason to avoid phone contact and use written, which provides an existing record of everything you’ve done. Legitimate agencies should have no problem dealing with you in this manner, assuming you respond to them in appropriate time. Keep a file of every document they sent you, everything you sent them, and notes regarding who did what when. Dating documents is also important. This is especially important in disputed debts, which can be resold to other agencies, and if you make a repayment agreement with the collector.

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