Dealing With Debt Collection Companies

by Steven on February 18, 2012

Because of the downturn in the economy many lawyers have gotten into the debt collection business. It seems to be a personality type thing…if the lawyer has compassion they become a bankruptcy attorney, if they don’t give a damn about anyone except themselves they become a debt collection firm.

My blog is all about dealing with debt and dealing with debt collection companies is a specialty of mine. Even though I’m not an attorney I’ve been in court dealing with my own debt issue’s from the past and I’ve help hundreds of individuals and families execute their rights against debt collection companies either in court, phone or via mail.

The most common mistake you can make when dealing with a debt collection company is to not respond to their letters or calls about a specific debt you may or may not owe.

I understand that you might be under a lot of stress and anxiety about your financial situation I’ve been their myself but you need to face up to it and find out the entire situation.

When it comes to debt collection company calls always answer the phone and tell them to send what they are talking about in writing. Don’t answer any question about where you work, if you have open balances on your credit cards, about paying monthly payment, etc.

Keep the conversations short, simple and to the point. Tell them that you are not denying or acknowledging the debt and that you are requesting that they send you all the information about what they are saying you owe in writing immediately.

This is where most people make their first mistakes dealing with debt collection companies. What is they have already sent the documentation about the debt and they haven’t gotten a response from you and that’s why they are calling?

First you’ll need to find that letter and HOPEFULLY it isn’t past the 30 day grace period that debt collectors are given when asking you to acknowledge a debt.

Every debt collection company must send you a letter in writing giving you 30 days to agree or disagree that you owe a specific debt that they might have purchased or taken over as a collection account for the original creditor.

If it isn’t past the 30 day grace period you should immediately send a letter back stating that you don’t acknowledge the debt. For more information on how to do this please visit my website at NOMOREDEBT2011.COM to get all the documents you’ll need to submit this.

The main reason why that is so important is because if you don’t respond with in 30 days you are acknowledging that you owe the debt and that allow the debt collection company to move forward.

If you respond you put them back on their heals and started a process of making them come up with all the necessary documentation proving that you actually owe the debt in question.

Because these debt collection companies are buying thousands of old account at a time they rarely do their homework and get the necessary paperwork proving that each account is valid under the law.

The law states that they must prove with original documents from the original creditor. Because most people don’t challenge this because they are stressed out, afraid or going through severe financial problems they don’t even show up to court to execute their rights.

If you have already past the 30 day grace period you can attempt to request the documentation from the debt collection company but they might have already moved forward to a court summons.

If you receive the court summons don’t be afraid because I’m about to tell you how to deal with that also.

A court summons is a request made by the Plaintiff such as a debt collection company or a creditor to have you come to court to tell the court what you are going to do with the debt that you owe.

Here’s the BIG MISTAKE most people make when getting summoned to court.

They just show up to court with out answering the summons. If you have a summons you’ll notice that they haave questions that they wanted you to answer about the debt. They didn’t just say “Joe Blow owes me $35,000” they actually wrote out a summons request with specific questions.

The first thing you should do is answer all the questions on the summons. Again please refer to my website for documentation on how to do this at NOMOREDEBT2011.COM

They do this for two reasons. Reason #1 it’s the law and Reason #2 it’s a great way to confuse you about what you should do about them summoning you into court.

I’ve heard of lawyers taking their clients to court without answering the summons point by point. This can actually make you lose your rights even if you are not at fault.

After you’ve answered the summons regardless if you owe the debt or not this will buy you much needed time to allow you to make a possible settlement of the debt at a more favorable amount.

If you have any question about dealing with debt collection companies please feel free to post to my blog or go and sign up for a FREE Membership to my Real Debt Solution Software system to help you deal with debt, budgeting, credit repair and much more.


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