Collection Agencies Calling?
Collection agencies are businesses that pursues payments on debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed.
Some agencies, referred to as “debt buyers“, also purchase debts from creditors for a fraction of the value of the debt and pursue the debtor for the full balance. Creditors typically send debts to a collection agency in order to remove them from their accounts receivable records; the difference between the amount collected and the full value of the debt is then written off as a loss.
Debt collection agencies have a reputation for engaging in threatening behavior, harassment or coercion. However, in many countries, collection agencies are governed by laws that prohibit certain abusive practices. Failure to adhere to such laws may result in lawsuits or government regulatory actions.
- Avoid the Phone – NEVER talk to a debt collector on the phone. Nothing good can come of it. The less they know about you the better. Politely tell them it’s your policy to deal with everything in writing and then hang up. If they keep calling, send them a cease & desist letter.
- Learn your rights – Debt collectors must play fair. Check out Fair Debt Collection – Facts for Consumers from the Federal Trade Commission.
- Record their calls – If you must talk with them, record them. Thirty-five states and the District of Columbia allow you to secretly tape your phone conversations. In the other 15 states, you can tape with the other party’s permission. If you tell the debt collector you are going to record and they keep talking, that’s considered giving permission. Usually they hang up.
- Debt Validation – Under the FDCPA, you have the right to “debt validation“. Debt validation requires the creditor reporting the information to prove to you the account is really your responsibility and the balances, etc are accurate.
List of Collection Agencies
Here’s a list of some of the nation’s most popular collection agencies that get removed from credit reports on a daily basis. There are many more not listed.