When debt collection agencies call

All debt collection agencies, like any other businesses, have laws governing their behavior and service. You have the right to not be harassed by debt recovery agencies. However, scary they may seem they are not really interested in you as a person all they want is your money. This means there are ways in which you can negotiate with debt collection agencies as they are limited by law as to what they can do.

Debt collection agencies work for original creditors, debt collectors work for debt collection agencies. Therefore debt collection agencies cannot sue without the instructions of your original creditors. Very often it is easier to just go to your origional creditor and try to work out a deal with them. Failing that here are a few tips in dealing with debt collectors and debt collection agencies.

The first thing you should be aware of is that debt collection agencies cannot settle for less than 100% of the debt if those are the instructions of the creditor. Most debt collection agencies usually earn a commission of 25-60% of the debt collected. Therefore the debt collection agencies may be willing to settle for less if a good enough lump sum is offered. Creditors are more likely to agree to such a settlement at the end of the month. This must however be agreed with the creditors, this is the job of the debt collection agencies. Make sure you get the agreement in writing before you pay any money. When you do pay the money make sure a paid in full statement is given to you when paying off the full debt.

If this is not an option and you feel you are being harassed by debt collection agencies knowing your rights puts you in a much stronger position.