October 02, 2017 by Snupit
Debt Collectors

Dealing with debt collection agencies is no one’s idea of a good time. In fact, it is common to feel a sense of panic and hysteria rising within yourself when you are faced with these phone calls. This is exacerbated by the intimidating lingo, phone calls and sometimes subtle threats used by debt collection agencies and their employees. While the best way to avoid these situations is to pay outstanding money as fast as possible, this is not always possible, with financial constraints affecting everyone these days. When you find yourself dealing with debt collectors, these are your tips to handle the situation wisely.

1.    Verify your debt

A debt collection agency represents a company you owe money to. Remember that you do not actually owe the company that is contacting you, so don’t immediately pay out of fear of going to jail or being taken to court. The first logical step for you is to contact the company you owe money and verify that you still owe them and that they have hired the debt collectors on their behalf. There are many scams, so exercise caution.

2.    Keep records and know your rights

Record everything the debt collection agency says to you: The name of the agent assigned to you, the amount you owe and the dates you receive phone calls.  Remember that they have to follow a long legal process, and fear mongering tactics are only tactics to get you to pay. You have rights! Remember not to sign anything immediately either. Sometimes an agent will come to your work and ask you to sign papers admitting to owing money. You are not legally required to do this at all. You can request a lawyer first (remember that legal aid is available to citizens who cannot afford a private lawyer). Refuse to correspond with the company until they put everything in writing: who they are, who they represent, what you owe and who you owe. Remember that owing money is not a crime, so do not allow them to intimidate you.

3.    Try to arrange a payment plan

If you are able to pay off the amount immediately, do so, it will save you lawyers’ fees and interest. If this is beyond your abilities, try to approach the company you owe the money to and arrange to pay it off. Most companies are willing to let you pay your accounts off, provided you make a payment absolutely every month, even if it is a minimal amount. This shows the company that you genuinely wish to honour the agreement you have made with them. If you are unable to do so or if they are not willing to make a compromise in this regard, you may need to get legal advice and have a third party draw up a payment plan.

If your company frequently battles to extract payments from clients, and your financial department is suffering, consider using the help of an outside company. Browse through the debt collection agencies on our online directory, right here on Snupit.

Filed under : Debt Collection
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