Collection Company Facts/Tips

Collection Company Facts/Tips

By Sonya M. Dod

A collection company is a company that has been retained/hired by the original creditor to collect on an outstanding debt. Collection companies can be very aggressive in their attempts to collect a debt. Their aggressive practices make them appealing to creditors. The Original creditor would like to be as aggressive, but would rather not to ensure they do not receive a bad reputation in the industry. That could potentially turn away new business.

It is important to know your rights when dealing with a collection company. As mentioned, they can be very aggressive, and deceptive. They are looking for you to own up0 to the fact that the debt is yours. Keep in mind that every phone conversation is recorded for that very purpose.

It is recommended that you request that they supply evidence supporting their ability to collect the debt. The evidence they are required to supply includes signed documentation/contracts proving that the debt does belong to you. Giving them verbal ownership is the same as a signed contract. When a collection company calls you, deny them the ability to speak to you over the phone.

If you do speak to them, do not lie or incriminate yourself, but at the same time do not provide them with any information or agree to anything over the phone. They can be very sneaky about this. The best thing to do is to state:

"I will only correspond with your company in writing. At this time I am requesting that you cease and desist any future phone calls. If I receive any phone calls pertaining to this account from your company it will be deemed as harassment, and I may exercise my right to sue your company.. This is not a refusal to pay, but simply a request that you uphold my request."

If they are calling you at work then inform them that this is my work number and I am unable to receive personal phone calls at this number. If they do continue to harass you, keep a log including time, date and the name of the person calling.

Sonya Dod is a certified credit consultant with Clear Credit Exchange. She can be reached at sonyadod@earthlink.net