It is important to note that while you must verify this information, you should not confirm this information over the phone with a collection agency. You can also hire a credit advisor to negotiate with your collection agency on your behalf and set up a payment plan. They can give you advice on how to proceed and deal with annoying calls from debt collection agencies legally. If you win the lawsuit under the FDCPA, the collection agency must pay your lawyer’s fees and other damages.
How do I get out of debt collection agencies without paying?
Consider talking to the collector at least once, even if you think you don’t owe the debt or can’t repay it right away. If you ask about your debts, remember that in some states, the clock is reset and a new statute of limitations begins when you confirm in writing that you owe the debt. In general, the goal of collection agencies is to get you to pay, so you may be able to negotiate a payment plan or a lower amount. When you pay off the debt, some collectors report this on your credit report to show that you haven’t paid the full amount.
References:
Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.