whats the best way to deal with a collections agency ?

Question

any tips ? about how much max time do they give you to pay the money ?

Answer 1

Holy smokes! It's like I walked into a room filled with collection agents...all this "pay the bills" nonsense!

And nobody answers your question.

Once the bill falls into the hands of the evil collection agent, they must wait at least 30 days from the time they contact you to do anything at all.

Then they will usually harrass for about 4-6 months.

After that will depend on a few things.

1) How much do you owe them?
Usually they don't mess with debts under $500. If you owe over $2000 you are definately going to be a target.

2) Where is the collection agency located. If they have an office near where live, that increases the likelyhood they will sue you. They probably are in court a lot, and it's not going to be difficult to get your case added to the docket on the same date, so it will be easy for them to appear. I've seen the same lawyer handle 12 cases in a row on the same day! So even a small debt is going to be sued for.

But if they are in a differant state, they would have to hire a local lawyer/agency to sue you. That cuts into their profits, and makes it much harder for them to sue.

Remember that collection agents work mostly for commission. They are NOT going to waste several hours of time working to collect a $500 debt, only to get $130 out of it. For the same effort, they will go after a $2000 debt and get $600. They got families to feed too.

So weigh these factors and decide how much danger you are in. If you think you are safe, send the collection agency a "cease and desist" letter so they will be forced to stop calling you or bothering you. This is a "put up or shut up" letter....if they want your money they will have to go to court.

In many cases they will be content just to destroy your credit history for the next 7 years.

Answer 2

Whoa! First of all, are they collecting a debt that's the right amount? Many collection agencies tack on their fees, etc. even if the original creditor didn't have a contractual right to do that and they're not supposed to do that unless there's a law saying they can. Secondly, how long ago was the debt incurred? Because, if the debt was created years ago (the time varies from state to state) then the debt might be barred by the Statute of Limitations. If so, you have no legal duty to pay it UNLESS YOU RE-AFFIRM THE DEBT BY ADMITTING YOU OWE IT. That starts the time limit running again. So, if they say "Pay" and the debt was incurred say 3 years ago in a state where the Statute of Limitations is 2 years, then you can say "Hey, I don't owe that and, even if I once did, the Statute of Limitations has barred your claim." Thirdly, assuming you owe the debt and it's all valid, they still don't have a right to harass you and there are attorneys that specialize in prosecuting violators of the "Fair Debt Collection" laws. If it's a fair debt and they aren't violating the law, I recomment folks send in an amount that a judge would see is a reasonable attempt to pay off the debt (e.g. maybe $25 a month on a $600 debt would work if you honestly don't make much money but sending $10 a month when you owe $5000 isn't going to work unless you're on welfare). It would help to have more information. Are they threatening to sue unless you pay the whole thing right away? Well, a lot of judges can be sympathetic if you've made "a good faith effort" to pay. You really need the advice of an attorney knowledgeable in the laws of your area. If you don't have the money to pay an attorney, consider looking for the local "legal aid" that provides free legal assistance to low-income people and see if you income-qualify for a consultation. Don't confuse "legal aid" with "public defenders" because "legal aid" is for civil matters, like debt collection, while "public defenders" help people accused of committing a crime.

Answer 3

I will try to answer this question to the best of my knowledge.
I remember that it runs like this: 21-30, 30-60, 90-120.
Now, what that means is if you have maybe a payment less than
a month late they may send you a reminder. If longer than a month running into 11/2 to 2 you are making them nervous about their money. 30-60 days, in a gentle warning and beyond that...look for your check to be garnished, if you don't make some type of arrangement with them.
Responsibility is your job, IOU is what you said when you used their service now they want you to be responsible to live up to your word. If you are having some type of difficulty call them and let them know along with your desire to pay what you can without putting yourself in the street. If that does not work for you go quickly to a financial counselor to help you with further in-site on what to do. Good luck .

Answer 4

The best thing to do is talk to them. Don't avoid their phone calls at home. If you don't answer at home and don't return their phone messages, they then begin calling you at work and you really don't need the stress that can cause. They will work with you.

Also, do not give them your checking account and routing number and let them take payments from your checking account. Tell them you will send in a money order and pay yourself. My dad was in his 70's and gave them his checking account number and they took out money whenever they wanted.

Definitely work with them though and be kind on the telephone, no arguments. If they state you must pay $200 per month and all you can afford to pay is $100, then state that. They can't make you pay what you cannot afford. Things will work out better for you that way. I hope this helps and things work out for you soon.

Answer 5

Number 1, be honest with them, do not dodge them, answer their calls.

Explain to them you know you owe the debt, if you do, tell them if you have the money they would have theirs also. You would much rather avoid the harrasement than to deal with them but that is the way your situation is right now.

Make an arrangement with them. One you can live by. Remember, they just want their money, they want to get paid, but they can't if you don't have it. When you make an arrangement, make one you can pay. Pay by that arrangement and pay on time. They want to see that you are trying to pay them back.

I am not sure on the time frame but I do know their ultimate goal is to be paid in full.

Good luck.

Answer 6

The best way to deal with a collection agendy is to pay them.

Better than that, pay the bill before it goes for collection.

Answer 7

collection agencys try to screw you they dont care about u all they want is your money try to contact a laywer for a free avice they will help a great deal

p.s. collection agencys break the law everyday yu just need the right info from a attorney

Answer 8

You can ignore them for awhile and they'll usually give up after awhile. They can sue you though so be careful. It's best to work out a payment plan if you can or pay it in full and be done with it.

Answer 9

Don't ignore them,it'll only cost you lots more if they take you to court.Work out a reasonable sum you can pay them each week/month,but make sure it's a sum you can afford.Phone and talk with them.Don't let them scare you into agreeing to pay more than you offer.Good luck

Answer 10

Whatever communication you have with them should be done in writing. They determine how much time you have to pay a debt. And be firm with them-- do not let them intimidate you--you have rights even though you may owe money.