Should i call collection agency

Debt Collection. This information could include: The origin of the debt: o What it was for o What date was it incurred The statute of limitations or the limited period of time a creditor or collector has to file a lawsuit to recover a debt. Possible repayment or settlement options. In some cases, you may be able to settle the debt for less than what you owe. How to Respond to a Debt Collector in Writing For additional resources on responding to a debt collector, we have prepared sample letters.

Don't see what you're looking for? Browse related questions What should I do when a debt collector contacts me? What may happen if I ignore or avoid a debt collector? Under the federal FDCPA, if you request that a debt collector stop contacting you completely, it must do so, subject to a few exceptions.

Your request must be in writing. But think carefully before you tell a collector to cease communicating with you. If you want to keep tabs on the debt status or open up the lines of communication with the collector to negotiate a settlement , a cease communication directive might not be in your best interest.

If you ask the collector to stop corresponding with you, it can't contact you except to serve you with a lawsuit.

However, if you're thinking about filing for bankruptcy , telling the collector to stop contacting you might be a good idea. Once you file, the court puts in place an order called the automatic stay. The stay stops most collection calls, but collectors can still call before you file. If you feel the debt isn't legitimate or you don't owe it, you should tell the collector why. Often, collectors aren't even aware that your debt might be uncollectable. If your reason is valid, the collector might voluntarily cease collection on the debt.

Their resources could be better used on consumers who don't have a valid objection to paying the money. If you act quickly, you can request in writing that the debt collector validate the debt , and the collector must stop collection activities while it does so.

A collector doesn't have to stop trying to collect just because you can't pay. But telling collectors that you can't pay, and giving them a short explanation of your financial difficulties, might lead them to move on to other consumers.

It might also prevent your file from being referred to litigation. But be sure not to admit that you owe the debt or say anything that might restart an expired statute of limitations. Depending on your state, you might restart the statute of limitations if you make a partial payment on a debt or otherwise acknowledge that you owe a debt that you haven't been paying.

A new promise to pay a debt might also revive the statute of limitations in some circumstances. Your instinct might be to hide from collectors by changing your phone number or refusing to provide your address. But hiding your whereabouts won't prevent a collector from trying to collect—it just will mean they might send letters and make calls to others that they think might know where you are or who they think are you. Collectors who don't know your location have a lot more legal leeway to contact employers or friends to ask for information about you, like for your address.

But if the collector has your location information, then talking to employers or friends is illegal. While some collectors might say they want information about your income to qualify you for a lower payment amount, you should never provide your personal financial information, including your:. This information might be used to collect from you through a wage garnishment , bank levy, or property lien if the creditor or collector gets a judgment against you.

Often, a debt collector will ask for you to voluntarily make a minimal payment, not under a settlement agreement. The collector might say that the payment shows you're acting in "good faith.

Not true. What this small payment will do is extend the statute of limitations. In most states, the statute of limitations clock starts ticking from the date you made the last payment. Every new payment, no matter how small, could restart the limitations period. Even if it's clear you owe the money, you should refrain from making any statements such as "I know I owe this and will pay you as soon as I can" or "I can start paying you next month. Any promise you make to make a payment could be interpreted as a separate contract, renewing the statute of limitations for the debt.

Using profanity, screaming, or getting hostile, won't help you. Depending on your personal situation, there may be different steps to take. As with other business matters, get everything in writing before you proceed. If you recognize the debt: You can contact the debt collector and work out a repayment plan that makes sense for you.

You may wish to consult an attorney or the applicable law in your state. If the debt is not yours: Write the debt collector to tell it the debt is not yours and that you do not want to be contacted about it again.