People with immense debt can expect debt collectors to call them on a regular basis. However, it is important to know that even though you have debts, you still have rights these collectors must respect, such as the right to obtain written verification of your debts.
Sometimes collectors can be quite persistent, but there are actions they cannot take by law. For starters, a debt collector may say a company will garnish your wages if you do not pay within a given timeframe. There is a legal process a debt collection agency must follow, and that includes sending you a written confirmation of the court date when you will have a chance to dispute the debt. Here are other common lies to watch out for:
“The issue will go away if you simply send a post-dated check.”
An oral agreement over the phone will not hold up in court. If you send a check, then you have no idea what the debt collector will actually do with it, and now, the collection agency has your bank information. You should only send money to make payments using a certified check or money order.
“You can improve your credit score if you pay the debt off immediately.”
Even after you pay off a debt, your credit report will still contain a phrase along the lines of, “Was 90 days past due.” There will not be an immediate benefit to your credit rating. The only way you can improve a score is if you receive a written agreement up front that the collection agency will remove all negative information for you.
“I can explain the situation to your friends or family if you want.”
Debt collectors may say this under the guise that they want to help you. However, they may use the contact information of friends and family to track you down later if you fall off the grid. You can simply respond to this statement with, “I have exhausted all options, and I have no funds available to pay.”