Credit Card Debt Collection

Credit card debt collection, which is usually done by a debt collector, is one of the most stressed experiences for anybody. If you ignore the process these debt collection agencies would drive you crazy. And to make matters worse, you can expect anything from repeated threat calls to mails and these people can also go to the extent of informing your employees and neighbors about the unpaid loans. However, there are certain tactical ways of dealing with a serious issue such as debt collection. Let us see how.

Credit Card Debt Collection

Talk to the original creditor

If possible, you should first make an effort to negotiate with the actual creditor of the card before it reaches a point when a debt collector has to interfere in the process. When you talk to the credit card company try to negotiate a reasonable payment amount and settle the due before matters become more complicated in the hands of a third-party debt collector.

Be aware of your rights

It is essential to become aware of the credit card debt collection system in the U.S. The Federal Trade Commission (FTC) brings out a number of publications for educating credit card holders of their rights. The law also states that if you are harassed of phone calls or any forms of threat, you should report it to the FTC and they would take steps against collecting agency.

Do not ignore collector’s correspondence

This is one mistake which many people make. They often do not bother about the letters or calls and even court notices that they get about debt lawsuits and gets trapped later. Immediately send a mail or any type of correspondence to clarify the crisis and also immediately contact the agency if you feel the information about debt is not true to avoid any kind of confusion at a later stage.

Keep a record of all correspondence

Keep a record of all the documents you have received and produce them in case you have already settled your debts, so that you are not cheated later. It is advisable to get everything in writing. This includes any amount already paid to the creditor for settling credit card debts, if any. You should use it as a proof of evidence if the collecting agency questions you on debt settlement. You need to also get a confirmation mail from the debt collector as the next step to prevent yourself during the debt collection procedure.

Talk to a consumer lawyer

You should consult a consumer lawyer in case the collecting agency gives you a notice of a lawsuit. The lawyer should specialize in such matters. Often times these lawsuits are baseless and if you have sufficient evidences to prove your point, you would not face much trouble in winning the suit. You can also look for an accredited counseling agency and together work out on a payment plan as per your budget.

Announce bankruptcy

Declaring bankruptcy is also one way to protect you from the hassles of credit card debt collection. It will in fact stop the debt collection efforts. But this should be your last resort.

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