10 TIPS ON COLLECTION AGENCIES

With troubling times seemingly ahead, many people will be dealing with a collection agency, maybe for the first time in their lives. The following information is provided to you in an effort to help you understand how to better manage communications from an agency.

A few facts and suggestions for those dealing with collection agencies: First, all agencies have access to the same tools. We all utilize the same credit reporting companies to affect credit and if a debtor does not pay a debt that is valid, we may sue that account in civil court to receive a judgment. Most good agencies use professional collectors whose job is to talk to debtors to insure the valid debt is paid. Some agencies use different strategies and tactics but all are governed by the Fair Debt Collections and Practices Act which is enforced by the Federal Trade Commission and in place to prevent deceptive, abusive and unfair tactics. Now that you know a few facts, let us share with you 10 things to keep in mind should you get a call from a collection agency:

First and foremost, the best way to prevent getting a communication from a collection agency is to call your creditor immediately at the first sign of a problem. Most creditors do not want to place your account for collection. If you call them and keep them up to date on your situation honestly, most are willing to work with you. Remember, you aren’t the first person to be in this type of situation.

1. Don't panic and don't get angry, this isn't the end of the world, as you know it.
2. Call the agency and get the facts. If the debt is valid, work with them to figure out the best way to approach the problem. Be straightforward about any financial situation you may be in. Collectors are trained to help consumers with collection issues.
3. Be respectful and expect respect. You have the right to be treated with dignity but the debt still needs to be taken care of.
4. Attitude. As with most issues in life, attitude determines outcome. If the attitude of the collector is rude, simply ask to speak with their supervisor. Rude collectors have no place in most collection organizations.
5. Remember, the company that extended you credit, counts on that money just as you count on your paycheck.
6. Ask the agency what their intent is. If they are going to affect your credit, they will tell you. If you refuse to pay or fail to keep an arrangement, they may place the account with an attorney and yes, they can sue you; however, they cannot do it overnight and they can't come and take your first-born.
7. In the case of a civil suit, the court will determine whether a debt is owed. It is not the jurisdiction of a court to determine how the debt is to be paid out. If you fail to pay or work out an arrangement within a specific time frame, then your wages may be garnished. No agency can take your entire paycheck. Wage garnishment laws determine how much can be withheld.
8. If you believe you do not owe a particular bill, you have the right to dispute a debt, which should be done in writing, to validate the debt for you. You also have the right to request an itemized statement; again it should be in written form.
9. Understand that the agency has a job to do, just like you do, and that they want a resolution to the problem that is a win/win for everyone.
10. Keep your promises. If you cannot make a scheduled payment, don't wait for the agency to call you. Call and keep them posted on what is going on in your world. This might not save your credit from being affected, but it will help to create a good rapport with the collector who will work with you as much as possible.
Keep in mind that we all owe money at some point in our lives. If you communicate with your creditors and be proactive, you will find that the process can be relatively painless.


Jeff Chambers
President
Alliance Collection Service, Inc.

Ken Dulaney, Sales & Marketing Director
Alliance Collection Service, Inc.