Dealing With Collection Agencies

If you receive a telephone call or letter from a debt collector (be it a collection agency or debt collecting law firm), here are some helpful hints:

The best (and safest) way to deal with debt collector is in writing. That way, you have a written record of everything that transpires between you and the debt collector. We advise our clients to send any letter via certified mail, return receipt requested, and via regular mail. If a debt collector calls you on the phone, politely ask them to stop calling you and to correspond with you only in writing.

Always request verification of the alleged debt. Under the Fair Debt Collection Practices Act (FDCPA), which is a federal statute that governs how consumer debt is collected, a debt collector must provide the consumer with written verification of the alleged debt upon written request within 30 days of the first written letter from the debt collector. The request can be as simple as "I dispute the validity of this debt. Please provide me with verification". However, a lot of debt collectors ignore consumer's request for verification. That is why it is important to communicate with the debt collector in writing, so you have proof that you requested verification.

Do not allow a debt collector to threaten or harass you. It is illegal under the FDCPA. There are numerous horror stories of debt collectors threatening to garnish people's wages, have them arrested, notify their neighbors, co-workers, employers, etc. If you experience any of this type of behaviour, be sure to make a note of the name of the debt collector, what was said to you, and the date and time.

If you feel that a debt collector has violated the FDCPA (or your state's consumer protection laws, such as Pennsylvania's Fair Credit Uniformity Extension Act), you generally can bring a claim against the debt collector in court and seek statutory damages, attorney fees, and costs. In some cases, we have been successful in having all or part of the alleged debt wiped away because of the debt collector's illegal tactics.

An attorney who handles consumer credit/debt issues can more fully explain the FDCPA and other relevant laws to you and advise you on your particular situation.