Talking to a Debt Collector? Avoid These 5 Grave Mistakes

There are about 70 million Americans in the country who have some debt in collection. Alternatively, they have been contacted by a debt collection company. The chances of you being one of these millions of people is unfortunately quite high.
But the thing is that the way you handle these interactions and the mistakes you avoid will decide if your debt collection process goes smoothly. If you freak out and make debt collector mistakes then get ready to say goodbye to a good credit score of your dreams. 
It isn’t so pleasing to be in debt, but things can get worse if you don’t know the right way of dealing with debt collectors because you could land in another unwanted situation. While we’ll cover the 5 grave mistakes you must not make while in talks with a debt collector, it only makes sense to start with knowing your rights first. And this is where having a debt lawyer can make a lot of difference in how to deal with these collectors the legal way. 

First, Know What Your Rights Are

Many of us start to feel scared when a collector calls but knowing your rights can help you be more confident and not intimidated easily. 

Read the Fair Debt Collection Practices Act 

The FDCPA federal law is made to protect you from debt collectors who use unfair, abusive and deceptive practices in their process. This law defines very clearly what a debt collector can or can not do. Let’s take an example: a collector cannot call you before 8 AM or after 9 PM, and they can’t even harass you with constant calls. Read through the FDCPA very thoroughly so you know exactly what you’re obliged to do and what your right is in a situation where a debt collector is harassing you. 

Are You Sure Their Practices Are Legal?

Debt collectors know the vulnerability of your situation and would use a variety of tactics to trap you, even if they have to resort to what’s considered illegal. 
Here are some activities that should serve as red flags for you to look out for when dealing with debt collectors: 

• Calling you again and again and using obscene language or threats of violence
• Giving incorrect debt figures and using scare tactics to make you give in
• Putting out your debts to the public or sending letters to embarrass you

Here’s What to Do When That Happens

What are you doing when a debt collector crosses the line? Don’t even think twice before reporting such behavior to the different authorities or even the attorney general of your state. 

Mistake #1: Giving Away Too Much Personal Info

Almost always, the debt collector will resort to illegal tactics to get you to pay the debt. Once the collectors start threatening, most of us feel under pressure and just share too much personal information with them. This is one of the easiest debt collector mistakes that will backfire very badly later. 

What Information Should You Keep With Yourself? 

Debt collectors really don’t need to know all the details about your family, your finances, where you work or how you commute. Remember, less is more. 
Here’s what you should never give them:

• Your SSN 
• Bank account and routing number
• Any unnecessary financial information

Safe Ways to Communicate with Debt Collectors

Do this to keep control of your conversation while talking to a collector: 

1. Keep the conversation limited to the debt and don’t wander off topic.
2. Ask for all communication to be done in writing so you can document everything and even request the collector to stop calling you. 
3. Write a debt validation letter to keep your interactions focused on the debt only so you won’t give away any personal information. 
4. You’ve decided to settle the debt, but there’s no reason to disclose your bank details and hurry to clear the required payment.

Mistake #2: Ignoring the Debt Collector Temporarily

Ignoring is never the right option when you have debt collectors calling you or trying to get in touch with you. 

Does It Really Benefit You to Ignore the Debt Collector? 

If you don’t allow them to get in touch with you, you do run the risk of being sued by them. Your credit score is the next thing that will be targeted and even if you resolve the debt later, the effects will stay on your score for up to seven years. 

How to Answer Without Being Overwhelmed? 

The thought of paying a huge debt instantaneously can scare anyone, but that’s not what the agenda of the call is or should be. 
Here is some useful debt management advice on how to respond: 

Writing a Debt Validation Letter

You can think of this letter as a request to the collector so they can prove the debt is yours and give all the details about it. 
Here’s what to include: 

• Your name and contact information
• A request for written proof of the debt
• A statement that you are disputing the validity of the debt until it is verified
• A request that all further communication be in writing

Record ALL Communication 

Are you communicating with your debt collector via calls or text messages? Record EVERYTHING. This will protect you from any disputes if the debt collector tries to take the illegal route. 

Mistake #3: Not Having a Proper Repayment Plan

Want to know one of the most underrated debt collection tips that nobody will tell you? If you don’t have a plan, you’ll find yourself in quicksand faster than you may realize due to the unavailability of cash for your daily and monthly household expenses. 

Risks of Unplanned Payments

When you’re making debt payments without planning it out, you might put a big chunk of your income into the debt, and this will end up with shortcomings in other essentials like rent or groceries. If you have different unpaid debts, then most of us make the mistake of paying off just one debt only while neglecting the others. Do remember that this will only add up to more penalties, late fees, and interest for you to pay later. 
Rushing into payments can feel like you’re avoiding debt collector errors but it often makes things worse. 

Creating a Payment Strategy

Before hitting the pay button, take a real hard look at your income, expenses and total debt. Stay aware of all your financial obligations so you can decide what’s manageable and what’s not. 
The most important thing here is to decide how much you can afford to pay every month without actually putting the other expenses in jeopardy. 

Deciding Which Debts Need to Paid First

You have to take a careful look at your debts and decide which one needs to be paid first because every one of them could have a different effect. If one of them would pull your credit score down then the other would have a high interest rate. The first thing you need to do is pay off the debt with a high interest rate because these can get out of hand really quickly. After that, pay off the debts tied to assets like a mortgage or car loan so you don’t lose your property. 
If a debt collector is threatening legal action, this debt might need to be addressed more quickly, but not before verifying the debt and negotiating better terms.

You Can Negotiate, and You Should

You don’t have to fear paying everything all at once since most professional and legal debt collectors keep the option of installments open for you. It’s best you use that option if it’s present. 
If your debt has grown due to high interest or fees, try negotiating these down. They may be able to slash such fees to provide you with some relief with your debt repayment.

Mistake #4: Not Verifying Your Debt Before Paying 

Always, always verify your debt before making the payment or negotiating with the collector. 

Why Verify at All? 

The first ever thing you do when you’re trying to avoid debt collector errors is verify. 

• They might have contacted the wrong person. 
• Every state has a statute of limitations on how long a debt collector can legally sue you for repayment and if the debt is too old, then you might not even have to pay it. 
• Verifying a debt can help you match the amount they claim you owe them versus what’s actually owed. 

How to Verify? 

Debt verification is a very simple process that gives you the peace of mind too that you’re paying the right debts off. Follow these steps: 

Requesting a Debt Validation Letter

We can’t emphasize this enough if you want to avoid debt collector errors: ask for a debt validation letter as soon as a debt collector contacts you. Always keep a copy of the letter you send and use certified mail with a return receipt so you have proof that the collector received your request.

Reviewing the Debt Collector’s Response

Read through the validation letter very thoroughly when you get it back from the debt collectors. Double-check the information like the amount you owe or the name of the original creditor so there’s no foul play. Dispute the debt right there if you notice anything suspicious or if the details don’t add up. 

Mistake #5: Not Taking Help or Legal Advice When Things Get Overwhelming

Debt collectors will keep on pestering you until and unless you decide to pay off the debts and they might even use illegal ways to get to you. Having a debt lawyer can really help with how to deal with collectors in a legal way. 

When to Consult an Attorney

The moment your debt collector decides to threaten or sue you with a lawsuit, you should know that it’s time to call an attorney. 

Why Get Legal Help? 

Most of the attorneys know the laws related to debt and can help advocate on your behalf when you can’t handle it alone. 

You Must Protect Your Lawful Rights

Let an attorney be there to help you when a fake or fraudulent debt collector is violating FCDPA protocols to make your life difficult. 

Don’t Take the Stress of the Legalities 

You might’ve watched an episode of Suits and now you’re thinking that being an attorney doesn’t look that hard. It’s actually the opposite here. Attorneys deal with all the jargon and tons of paperwork of debt collection so you don’t have any added stress. 

Recap of Key Points

• Never ignore a debt collector’s calls or letters. 
• Don’t overshare. 
• Don’t make impulsive payments and think your other expenses through. 
• Request a debt validation letter because you have the right to and verify everything before agreeing to make the payment.
• Get help from an attorney.

While doing all of the above, make sure you’re keeping a record of your transactions and conversations with the debt collector.