As a debtor, you need to have all the information about what to do and not to do when a debt collector calls you.
All this information is crucial for you to pay your debt on time, and also so that a scammer harasses you in the process. For a debt collector, following the do’s and don’ts are more important because if they do fall on any law, they can get into trouble. A debtor can sue them or worse, the body governing these laws can come after you for harassing the debtor or breaking the laws.
In this blog, we will explore the do’s and don’ts for both at the time of a collection call.
Do’s for a debt collector
1. Call at the office
A debt collector can call the delinquent at their office. It is within their legal rights. But a debtor can ask the collector to not call at the office and they have to oblige.2. Call their partner or family
A collection agent has the right to call the delinquent’s family or partner or neighbors. Although, other than their spouse, a collector cannot disclose about the debt to anyone.3. Ask for personal details
A debt collector may ask for personal details like additional number, or office number, and so on. They don’t ask for bank account details, keep this in mind. Although they have the right to ask these questions, a debtor doesn’t have to answer if they want to.4. Report you
After the first call, if a debtor insists on not paying even after the validation of debt. A collector can report your collection to the credit bureau. It can result in a decrease in your credit score, which can lead to problems in securing future loans.Don’ts for a collector
1. They cannot call after or before the defined time
A collector cannot call a debtor after or before a particular time period. For most cities, that time is between 8:00 am to 9:00 pm.2. They cannot threaten or harass the debtor
Whether in Philadelphia, Lagos, Accra or any other place, A collection agency can never threaten the debtor with jail time or lawsuit. Also, they cannot use abusing words or harass their family and friends.3. They cannot lose their calm
A debt collector has to be professional and keep their calm at all times. Even if the debtor becomes rude or abusive, they cannot be unprofessional towards them.Do’s for a debtor
1. Pick up the call
Deciding to pick up the call is your right. But do remember that not picking the call won’t make the debt go away. What you can do is decide the right time to pick the call.Make sure before you answer the collector, you are aware of your rights, what to do if they harass you, and so on.
2. Write to stop the calls if you want to
As a debtor, you have the right to ask the collector to stop calling you. For that, you have to send a written letter, but it might have some serious consequences like:The debt will still be there, and it will straight away go to collections.
When you don’t answer the collector’s call, you close all the communication lines. That means you cannot negotiate or ask for a payment plan.
3. Validate the debt
The first thing you need to do when you get a collection call is to ask for the validation process. After that, write a letter asking for proof that the debt is yours. Similarly, make sure you ask questions from the debt collector about the creditor and their company’s name and so on.4. Note the call
Record the call if you can, or note everything that transpired during the call. If a debt collector is abusive or harasses you (no reputable collector does that), these logs will work as proof.Don’ts for a debtor
1. No personal detail
Don’t provide your social security number or bank information or assets details over the phone.2. Don’t make a partial payment
Paying a partial amount as a promise to pay the whole amount may compel the creditor to increase your payment period. But because of this, you don’t have the right to negotiate the debt amount.Knowledge is power, and knowing about the do’s and don’ts of both parties involve increases chances of success for everyone.
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