Debt collection is usually handled by creditors in-house for the first 90 days after delinquency. These collection callers are typically polite because they are concerned with maintaining the company’s reputation. After 90 days, you’re likely dealing with a collection agency. Collection agencies are far more aggressive in their tactics because they usually get 25% to 60% of any collected debt. As a last resort your creditor may sell the debt to a debt buyer. Debt buyers can be irritating because they purchase very old debt and often don’t know from where it originally came, which means that they sometimes try to collect from people who don’t actually owe anything.
What Does the Law Say?
Debt collectors have to play by the rules. They can only call you between 8:00 AM and 9:00 PM and can’t contact you at work unless you give them permission. You and your spouse are the only people they can contact about your debt. The law prohibits collectors from lying about your debt. It’s also important to know that they can’t garnish your wages unless they get a judgement against you, so don’t be scared by empty threats. Finally, they are not allowed to contact you if you send them a written request to cease all communication.
How Should I Deal with Collectors?
Here are some ideas on how to deal with debt collectors:
- Don’t get emotional. Debt collectors are trained to try and push as many buttons as possible because you’re more likely to pay them when your emotional.
- Get a phone which can record phone conversations. Turn on the recorder when collectors call to get proof of any illegal activity.
- Don’t send them written notice to cease all contact unless as a last resort. Doing so can increase the likelihood that they will try and get judgment against you.
- File for bankruptcy. Once you retain a bankruptcy attorney, creditors cannot contact you directly unless they receive permission from your attorney. Automatic stay goes into effect upon filing, which prevents any creditors from taking collection actions against you.
If you’re being hounded by creditors, consider giving our team of Stockton bankruptcy lawyers call for a free consultation. We’ve helped hundreds of clients in the Stockton area and would be happy to help you.