Learning how to deal with debt collectors
Learning how to deal with debt collectors is important if you cannot afford to pay your minimum monthly credit card payment. In my personal and advisory experience, legal proceedings related to credit card debt are the result of the debtor exhibiting weakness to debt collectors. You can reduce the chances of receiving a summons for unpaid credit card debt by understanding more about debt collectors and collection attorneys.
When responding to debt collectors avoid;
- Not responding to every initial communication from a junk debt buyer, collection agency or collection attorney with a deny/dispute/demand documentation letter sent CRRR.
- Not following up with further deny/dispute/documentation demands in response to poor documentation sent by the collector.
- Allowing debt collector harassment and talking to them on the phone, or worse returning their phone calls.
- Calling a debt collection agency or attorney to discuss a debt when invited to do so in a letter from them.
- While on the phone with a debt collector innocently, naively, honestly revealing personal information that can be used against you to collect the debt. This will not stop debt collectors but make them worst.
- Admitting (and re-contracting) to the debt on the phone or, worse, in writing.
- Not sending written communications CMRRR – certified mail return receipt requested. [CMRRR alone sets you apart from every other debtor not doing this.]
- Attempting to settle with a collection agency or collection attorney for a junk debt buyer.
- Not documenting and filing/saving written communications to and from debt collectors and referencing those in future written communications.
These are some of the ways someone with delinquent credit card debt can show weakness or opportunity to an original creditor, junk debt buyer, collection agency or collection attorney, and indicate that they probably will not answer a summons? Collection attorneys expect default judgments. They do not want to go to court to actually try a case. They just want their paralegals to mail the summons and file for a default judgment when the consumer does not answer. If you do the right things, collections attorneys and their paralegals will decide to spend their time more productively with other, weaker indebted consumers. [Here is a link to American Banker’s report on how one major credit card bank could not document its credit card accounts.] Knowing how to properly handle debt collector harassment is essential if you have credit card debt you cannot afford to pay. Read my Nonpayment Page posts.