Without admitting that the debt is yours, check with the collection agencies before you make plans to deal with it. If you ask about your debts, remember that in some states, the clock is reset and a new statute of limitations begins when you confirm in writing that you owe the debt. A collector can contact other people to find out your address, home phone number, and place of work, but they can’t usually contact them more than once and can’t tell them that you owe debts.
What shouldn’t you tell a collection agency?
Don’t let a collection agency bully you into anything, learn about your legal rights under the Fair Debt Collection Practices Act and defend yourself against predatory collectors. If you want to keep an eye on debt status or open up lines of communication with the collector to negotiate a settlement, a policy to stop communication may not be in your best interest. Debt Management Mortgage Government %26 Policy collection agencies have a reputation for being disgusting, rude, and even scary in some cases while trying to get borrowers to pay.
References:
- https://www.consumerfinance.gov/ask-cfpb/how-can-i-stop-debt-collectors-from-contacting-me-en-1405/
- How To Pay Off A Debt In Collections | Bankrate
Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.