Handling debt collectors during debt management efforts

Many Connecticut residents prioritize achieving financial stability over most other goals. Debt management is a process that can have numerous rewards, but it also takes a certain period of time to accomplish. During that time, debt collectors may come calling. Consumers need to know how to respond when contacted by a debt collection agency, and they should understand their rights and responsibilities in regard to debt collection efforts.

The first thing to understand is that it is never necessary to provide personal information simply because a request is made by a debt collector. Debt collection agencies have files on the consumers they contact. It is not necessary to provide them with additional information. In fact, since many scams are disguised as debt collection efforts, answering personal questions increases one’s risk of falling victim to a scam.

It is also important to understand that debt collection falls under a clearly outlined statute of limitations. According to state law, there is a period of time that creditors have to collect debts. Once that period of time has passed, creditors are unable to continue pursuing payment of the debt. However, creditors often sell old debts to collection agencies, which will continue to try and collect. Discussing a debt that has passed the statute of limitations with a debt collection agency can actually serve to turn back the clock and reset that account.

For those in Connecticut who are struggling in their debt management efforts, interacting with debt collectors can make the situation even more stressful. One way to offset that stress is by becoming fully informed of one’s rights and responsibilities in regard to debt collections. It is perfectly reasonable to request that all debt collection efforts be made in writing, thus removing the need to interact with debt collectors over the phone. That alone can make the situation far easier to manage.

Source: wrex.com, “6 things debt collectors may not want you to know“, Andrew Housser, Aug. 21, 2017