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Getting a call from a debt collector can be jarring, whether you recognize the debt they’re calling about or not. After all, hearing a stranger on the other end of the line demand payment is not a pleasant experience, and it can be difficult to know what to do next as your mind floods with questions. But while you might be tempted to hang up or promise whatever it takes to end the call, that’s not a good solution to dealing with a debt collector.
The reality is that the debt collection process is designed to make you feel pressured and powerless. You’re actually in a stronger position than you might think, though. Every year, debt collectors contact millions of Americans about billions of dollars in alleged debts, and a surprising number of these debts are incorrect, expired or even fraudulent. Luckily, there are laws in place to protect you from being held responsible for those types of debts.
The first few minutes of contact with a debt collector are critical to preserving your rights, however. Any misstatement or hasty promise you make could restart the clock on an expired debt or saddle you with an obligation that isn’t legally yours, so you need a game plan in place for when this happens. The steps you take in these moments will determine whether this situation becomes a manageable challenge or a years-long issue.
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5 critical steps to take after a debt collector calls you
Taking these crucial steps can ensure that the situation is handled to the best of your ability:
Verify the debt
The first thing you should do is confirm whether the debt is legitimate. Mistakes happen, and you don’t want to pay for something you don’t actually owe. Ask the debt collector for details, including the name of the original creditor, the amount owed and any associated account numbers. By law, debt collectors must provide a written validation notice within five days of initial contact, and if anything seems off, request further verification before taking any action.
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Learn your rights (and use them)
Debt collectors have to follow strict laws, and you have rights under the Fair Debt Collection Practices Act (FDCPA). Knowing what they can and can’t do helps you stay in control and prevents you from being pressured into something unfair or illegal. For example, they cannot harass you, make threats, call at unreasonable hours or discuss your debt with others. If a debt collector crosses the line during their communications with you, document the behavior and report the issue to the Consumer Financial Protection Bureau (CFPB).
Wait to make any payments
It might feel like paying something — even a small amount — could help make the problem (and the debt collector) go away. But making an immediate payment without fully understanding the situation can actually reset the statute of limitations on the debt, making it legally enforceable again if the debt had been close to expiring. So, take the time to assess your finances, verify the debt and explore your options before committing to a payment.
Contact a debt relief company
If you find that you owe the debt but can’t afford to pay it in full, reaching out to a reputable debt relief company could be a game-changer. These companies can help you with a wide range of solutions, whether you want to consolidate your debts, negotiate lower settlements with a debt collector (or multiple creditors) or set up manageable repayment plans. Instead of dealing with aggressive debt collectors on your own, you’ll have professionals advocating for your best interests and helping you find a sustainable solution.
Communicate strategically
If you ultimately decide to engage with the debt collector, just be sure to do so carefully. Never give out personal financial information over the phone. If you’re open to discussing repayment, request everything in writing. You can also set boundaries, such as specifying how you prefer to be contacted. If the debt is invalid or you don’t want to be contacted further, you can send a cease-and-desist letter. However, keep in mind that this may escalate the situation if the debt is still within the statute of limitations.
The bottom line
Dealing with debt collectors requires a solid strategy, not one that you come up with in a panic, so don’t let fear or guilt rush you into decisions that could worsen your financial situation. Take the time to understand your rights, verify the debt’s validity and explore all your options. While debt collectors are doing their job, your job is to protect your financial interests while resolving the situation legally and ethically. If you find yourself overwhelmed, don’t hesitate to seek help from an expert who specializes in debt collection issues. With the right approach and support, you can navigate this challenge and get started down a path toward a more stable financial future.
