FAQs
Don't provide personal or sensitive financial information
What should you not say to a collection agency? ›
You can also stop some kinds of collection contacts, like through certain mediums or at specific times. On the other hand, here's what you shouldn't do. Don't give a collector any personal financial information. Don't make a "good faith" payment, promise to pay, or admit the debt is valid.
What information must a debt collector provide? ›
Within five days after a debt collector first contacts you, it must send you a written notice, called a "validation notice," that tells you (1) the amount it thinks you owe, (2) the name of the creditor, and (3) how to dispute the debt in writing.
What is the 777 rule with debt collectors? ›
The “777 Rule” states that debt collectors may attempt to contact a consumer about a single debt up to seven times in seven days. Phone numbers do not matter; it's the number of debts that matters.
What debt collectors don't want you to know? ›
Here, then, are ten of the best-kept collection secrets.
- The More You Pay, the More They Earn. ...
- Payment Deadlines Are Phony. ...
- They Don't Need a 'Financial Statement' ...
- The Threats Are Inflated. ...
- You Can Stop Their Calls. ...
- They Can Find Out How Much You Have in the Bank. ...
- If You're Out of State, They're Out of Luck.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
How do you outsmart a debt collector? ›
You can outsmart debt collectors by following these tips:
- Keep a record of all communication with debt collectors.
- Send a Debt Validation Letter and force them to verify your debt.
- Write a cease and desist letter.
- Explain the debt is not legitimate.
- Review your credit reports.
- Explain that you cannot afford to pay.
In order to win a court case, a debt collector must prove that they have proper ownership of the debt, that you actually owe the debt, and that the amount they claim you owe is correct.
How to tell if a debt collector is legit? ›
Send the agency a letter by mail asking them to confirm their debt in writing. Search for the company name on the internet, review their website, call their number, etc. Do your homework. If they refuse to answer all of your questions, there's a good chance you're in the middle of a scam.
What is a drop dead letter? ›
You have the right to send what's referred to as a “drop dead letter. '' It's a cease-and-desist motion that will prevent the collector from contacting you again about the debt. Be aware that you still owe the money, and you can be sued for the debt.
Statute of limitations on debt for all states
| State | Written | Oral |
|---|
| Alaska | 6 years | 6 |
| Arizona | 5 years | 3 |
| Arkansas | 6 years | 3 |
| California | 4 years | 2 |
46 more rowsJul 19, 2023
The FDCPA and Regulation F set forth broad prohibitions on using unfair, unconscionable, false, deceptive, misleading, harassing, abusive or oppressive practices or means to collect a consumer debt.
Is it worth paying a debt collector? ›
Not necessarily. It's not always wise to pay a debt collection agency, even though that may be your first instinct. Depending on your circ*mstances, doing so may only worsen your financial situation and compound your problems.
What's the worst a debt collector can do? ›
The worst thing they can do
If you fail to pay it off, the collection agency could file a suit. If you were to fail to show up for your court date, the debt collector could get a summary judgment. If you make an appearance, the collector might still get a judgment.
Why should you never pay a collection agency? ›
By paying the collection agency directly, the notification of the debt could stay on your credit report longer than if you attempt to use another option, like filing for bankruptcy. When institutions check your credit report and see this information on it, it may harm your ability to obtain loans.
Why should you never pay a charge off? ›
A charge-off can have a negative impact on your credit score and could stay on your credit report for up to seven years.
Which item cannot be used to secure a debt? ›
credit card cannot be used to secure a debt because it is not an asset, but rather a line of credit. Tangible assets like houses, cars, or collections can be used as collateral due to their quantifiable value. Explanation: The item that cannot be used to secure a debt among those listed is a credit card.
