Maricor Bunal
At lunch one day you’re checking your voicemail messages and hear one that doesn’t make sense. According to the call, you still owe money on a hospital bill from two years ago. You’re sure the call is wrong and so you ignore it. Or, maybe you know the call is correct, and you do owe the money, but you also know that you can’t afford to pay the debt. You feel overwhelmed and embarrassed and so choose to ignore the call.
Whether you owe the money or not, ignoring the call is never the right decision to make. Doing so can set off a chain of unfortunate events that can cost you money and affect your credit for years to come.
Getting a call from a collection agent isn’t pleasant, but it can happen to even the most careful bill payer. Whether you receive one of these calls by surprise, or you’re expecting to receive it, there are five things you should do.
Get the complete information
It’s important to understand your situation. Ask the debt collector for a complete explanation of what you owe and when the debt and any associated fees were incurred. If possible, request the explanation in writing or via email.
Keep records
The laws about how debt collectors can legally operate vary between countries and even within countries, but it’s always a good idea to write down the date someone called, who you spoke with, and what was said. Also keep a record of any emails or written communication. If a debt collector is harassing you, you may have legal recourse.
If you owe it, pay it
If you know you owe the debt and you can afford to repay it, do so quickly. The sooner you repay the debt the sooner the calls stop, the less you’ll incur in penalties, and the less likely you are to harm your credit.
If you don’t owe it, say so
Debt collectors are often unaware of the specific details of your debt. If there’s a valid reason you feel you don’t owe the money, explain it. The debt collector may still choose to pursue the debt, but oftentimes, a professional debt collector knows that his or her resources are better spent pursuing legitimate debt.
Negotiate new terms
If you know that you owe the money but you can’t afford to repay it all at once, attempt to negotiate new terms. Do not simply make a “good faith” payment and assume that will satisfy the debt collector. Doing so can actually cost you more money. Make sure you fully understand the terms of any negotiation before agreeing to it.
As with any legal or financial issue, it’s often best to ask for help. For a large debt, working with an experienced lawyer may save you time and even money, as the lawyer can often negotiate better terms than you can on your own. For smaller amounts, consider contacting nonprofits that specialize in helping consumers with debt collection issues. Whether you choose to solve the problem alone or ask for help, do not ignore debt collection calls.
