Debt Collection: Do’s and Don’ts
Man sitting on the sofa talking on the phone with debt collector

When a debt collector calls you, you may be caught off guard.

Being unprepared in such a scenario could make you agree to unfavorable terms offered by the debt collector. You may also lose your temper, which would not play out in your favor.

3 Strategies for Debt Management

What Should You Do When a Debt Collector Calls?

  • Ask for documentation. Request that they provide you with a debt validation letter.
  • Record conversation details. It would be bet if you had a collections entry, a recorded sheet with the time and date whey your debt collector called, their name, and the highlight of the conversation.
  • Negotiate payment terms. If the debt owed is a considerably large amount, creditors might be willing to agree to a single payment of only 40% to 60% of the debt amount.
  • Talk to an attorney about your options.
Young woman on the telephone with debt collector
What should you do if a debt collector calls?

What Not to Do

  • Disclose personal information such as your bank account number or social security number.
  • Make a payment in good faith. This will only increase the statute of limitations.

About Attorney Ryan Peterson

Ryan D. Peterson is a former debt collection attorney turned consumer rights expert and advocate. After graduating from William Mitchell law school in 2008, Ryan opened his own criminal defense firm.

Written by Diane Nelson

February 26, 2021

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