Debt Collection is an industry that works for the creditor to recover all the money you owe. They will do anything to recover their money; harassment via daily phone calls, threats to expose your debts and letters, many letters to recover the principal and interest owed.

Sure, there are federal and state laws to help the consumer, but when consumed with guilt and overwhelmed with the financial pitfall we’ve created it’s often easier for us to give in to their threats, not knowing we don’t have to.

And even those obvious laws don’t stop aggressive debt collectors. Don’t expect them to share the rules and regulations with you. But what about the little known tips and tricks that can stop them dead in their tracks?

Did You Know;

1. Debt Collectors cannot legally collect a debt unless they are registered in your state?

2. Debt Collectors must register with monetary regulators in your state before they can collect any debt or contact any consumer.

3. They must position a usury bond before performing any business in that state.

4. Third, the majority of debt collectors are not the owners of the bad debt; they are only working for the original creditor to recover what is owed.

When a debt collector contacts you, there are some specific questions you must ask before responding to them. Keep in mind, a debt collector is calling to (a) talk or threaten you into paying your debt (b) calling to get as much information on you as possible. There are various ways to deal with these scenarios.

1. Ask the debt collector what is the original creditor’s name.

2. Tell the collector point blank, you do not recall incurring any debt with that named company.

3. Most importantly, request proof or validation of the debt. They will have 30 days to send you proof.

4. Do not give out any other information. Debt collectors will ask to verify information. They only want to make sure you live and work at the same place and they are able to keep in contact with you.

Very important: Never acknowledge a debt with a collector. Doing this can restart the statute of limitations, that is, the time limit that a creditor has to sue you for non-payment, as well as the seven year credit-reporting limit.

Another technique you can try, that will only stall the collection cycle is telling the collector, “I don’t deal or discuss any debts with third party agencies and I must contact the original creditor to converse about this.”

And finally, there are many debt collection companies that purchase the debt for pennies and then try and collect on it. Your debt was sold primarily because the original creditor could not successfully collect on it.

But just think about it. If the original creditor could not collect on it, how would a debt collector become a better source to recovering old debt? They can’t; but consumers don’t realize this and by the time it makes its way onto the credit report, consumers give up.

You can stop debt collectors in their tracks, without giving up your hard earned money. The learning process is easy if you’re willing to fight back.

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