COLLECTORS -3rd party-

Thrid Party Collections


If you are being contacted by a 3rd party agency or law firm in the connection of a debt you should familiarize yourself with the Fair Debt Collection Practices Act, commonly called the
F.D.C.P.A. It is designed to outline which actions are appropriate for "third party" debt collection activities.

This by no way is a law used to help consumers avoid paying the account.
NOTE: Mostly all collectors are familiar with the FDCPA and have been thoroughly trained.

Misconceptions:

Contacting a consumer regarding the debt, is considered harassment. FALSE

Contacting any other person other than the consumer in an attempt to locate the consumer is
against the law. FALSE

Contacting the consumer at work is against the law. FALSE-however there are certain stipulation s in different states regarding this also, there are certain stipulations regarding if the consumer expresses or the collector knows it isn't permissible to contact consumer at work

Representing checks is against the law. FALSE, FDCPA has no mention regarding re-presentment of bounced checks

Check by phones are illegal according to the FDCPA. FALSE

Collection agency has to accept proposal offered in order to reduce or repay the debt FALSE

Collector must accept any payment as a sufficient payment arrangement in order to cease collection activity if necessary. FALSE

Collection agency must report all payment to the credit bureau as they are being paid. FALSE

PAYMENT ARRANGMENT

1) Confirm the name of the original creditor
2) Get the ballance
3) Ask if interest is accruing
4) Ask if there are any payment options
5) Document who you spoke with
6) Review your finances
7) Propose payment plan
IF accepted, find out their method of verification and keep all records
If Rejected follow 8-13
8) Ask for the consequences
9) Ask for the reason why the proposal isnt sufficent, is it a time table, a minimum, or the collectors desgression
10) Ask to call back
11) Check your finances to See if this is feasable
12) Attempt to see if you can come up with a closer conter offer to the collection agency
13) Deal with the consequences if unable to work it out