by Frances Stanford

Created on: July 08, 2010

When you borrow money, whether it is through a bank or a credit card, you do have an obligation to repay the debt. However, there are times when life throws you a curve and you find yourself in an impossible financial situation where you just don’t have the money to pay your monthly bills. This happens to everyone from time to time, so you are not alone. Creditors want their money and when your payment is late they will call or contact you by mail to inform you that your payment is due. If you do not respond to the communication then after several missed payments you can expect to receive contact from a debt collection agency.

Late bill collectors can be very harassing – calling you early in the morning or late at night when they are sure that you are at home. If you have caller ID, which almost everyone has on their telephones today, you can choose to ignore the call, but this will not stop the calls from coming. In fact, it will only make the problem worse because after repeated attempts to contact you, the debt collectors will come knocking at your door.

In order to deal effectively with debt collectors, the best advice is to take the call. Explain your financial situation and if it is at all possible make arrangements to pay the bill. If you are polite, chances are they will accept whatever payment you can make at the present time. This can result in giving you a lower monthly payment, although there is no doubt it will take you longer to repay the money you owe and result in higher interest payments.

It is also important to know your rights when it comes to dealing with late bill collectors. Under the Fair Trade Debt Collection Practices Act, debt collectors are held to a standard of conduct. They are not permitted to harass you or to become abusive when they contact you. If this happens, you should report the activity immediately. They are also not permitted to reveal any personal information regarding your account to anyone whose name is not on the account.

After you do take the first contact with a debt collector, if you do not wish to receive any further communication, you should write a “Cease and Desist” letter to the debt collection agency. In this letter you make the request that the late bill collectors not call you at home in the future and to make all future contact by mail. Send this letter by registered mail so that it requires a signature to prove it has been received by the agency. Keep a copy of the letter and the signature card so that you have proof you have taken this action.

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