8 Things to Know When Dealing With Debt Collectors
Russ Wiles in The Detroit News reports:
If you’re contacted by a collection agency, consumer advocates say the first step is not to ignore the notification. If you fail to acknowledge a notice or phone call, a collector can place a demerit in your credit files after 30 days.
You can stop further contact by requesting this in a letter to the collection agency, although it’s possible another agency will step up.
Many collectors work on commission, a situation that can encourage aggressive tactics. Also, some agencies buy bad debts from merchants, banks and other businesses for pennies on the dollar, creating huge motivations to collect as much as possible.
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