How to Deal with Debt Collector Calls & Determine if Legitimate

Often times we feel a bit threatened by debt collection calls especially when we aren't familiar with the debt collector's claims. Beware that there are many scams that are often used to "phish" information from unsuspecting consumers. Also, keep in mind that debt collectors should have provided at least one mailed notice of late or delinquent payment. Be assured that the debt collection caller will ask questions. However put on the brakes so to speak and DO NOT GIVE THEM INFORMATION! Instead ask questions of the caller requiring them to give the details of the claim. Fair Credit Laws require that the information be given in proof of claims for debt repayment. If the caller is not willing to do so then something is wrong. Also, A real collector should provide the basics: name, company name, address and phone number. The verification can take many forms. It could be a copy of your contract with the original creditor, a copy of the charge-off statement or an invoice from the original creditor. Or it could simply be information about the debt, like the original creditor's name, the account number, charge-off amount and current balance. The collector should also be able to furnish at least the last four digits of your Social Security number. A scammer will usually refuse or say that they have already sent that information to you. Further, a real debt collector has 5 days from the initial call to send you confirmation of the debt. That letter should be more than just a demand to pay but should include the details of the claim. Also, remember that even if the collection is legit it doesn't mean it is necessarily your debt. Many creditors have accidentally contacted similarly named individuals or miscontrued account information of such individuals. A good practice once you have gotten the creditors information such as company name, address, phone, etc. is to call your local state's attorney general's office or consumer affairs and inquire as to whether or not the collector is licensed or allowed to work in your state. Also, ask if there are any complaints or records of improper collection practices of the debt collector. If the collector claims to be with an attorney's office take time out to check with the state bar association or check with the Office of Court Administration. Still you should not provide your information to the collector as they have the responsibility of providing you with information on the validity of thier claim. If in any event you find the collector may be a scammer immediately report them to the State Attorney General's Office or the Federal Trade Commission. You as a consumer should be checking your credit report at least once annually which can be done free once yearly by going to www.annualcreditreport.com or calling (877)322-8228. Chances are that if it is not listed on your credit report it is a scam or an error. Further, each state has statute of limitations for collections which can vary from 3 to 6 years hence make sure that if the collection is valid that it is not beyond the statute of limitations for your state. It is a proven fact also that some lenders on occassion have entered a debt on a third partie's credit in an attempt to recover lost funds hence it is a good idea to check your credit inquiry history to see if they actually appear there as having reviewed you for credit lending. Doing this often can clarify false claims. If indeed the Statute of limitations has expired the collector is barred form forced payment options such as liens, judgements, or wage garnishments. If the debt is legitimate and has exceeded 7yrs. after the date of you going into default, the debt has to come off of your report and can no longer be used in computing your credit score. If any such records exists your right as a consumer is to file a dispute with ALL THREE CREDIT BUREAUS requesting the inaccurate information be removed. Often times second & third party collections agencies will buy debts, keep in mind the debt if past 7yrs. of the original account default date still applies no matter if a new collection agency chose to acquire the debt from the original lender. Very importantly remember that some creditors attempt to use "reaffirmation" to start the whole 7yr. process working again. Hence, it is important not to inadvertantly acknowledge a debt either verbally when on the phone with the collector (as most calls are recorded) nor in writing, or by sending a payment on a debt that is past the statute of limitations. If you are unsure of the statute of limitation time period call your local Attorney General's Office or your state's consumer affairs office. Another right you the consumer should be aware of is that once you have received a debt collectors call you have up to 30 days to demand a written document of proof of such debt claim. Make sure that you send the demand letter with a return stamp required so that you may show proof of your rights having been met. Once again when sending such letters DO NOT PROVIDE YOUR INFORMATION!!!!! It would behove you to consider using a return address such as a post office box or office address instead of your home address. This ensures you not giving a potential scammer your contact information. As always I hope this information has been of value to you and ALWAYS use your credit wisely to prevent poor credit scores that may prevent future investment oppotunities.