How to Identify the Debt Collectors After You

Facing growing debts? Do you wonder about the exact amounts owed to creditors? This resource will help you determine precisely what and whom you owe, enabling you to regain financial control and manage your debts effectively.

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Why It’s Important to Be Aware of Whom You Are Indebted To

Understanding whom you owe enables you to
negotiate
Or resolve your debt. This way, you can also steer clear of fraudulent collection efforts from debt collectors who are scams since you will be capable of determining that the debt they’re contacting you about doesn’t actually exist.

Should someone reach out claiming they’re a debt collector, follow these steps to ensure they aren’t part of a scam:

• Understand the debt collector’s details.
• Reach out to the creditor to confirm that your account has been sent to collections.
• Check the debt collector’s identity and license number via the National Multistate Licensing System Consumer Access portal.

Begin with Your Credit Report

To determine if you have debts in collection, check your credit report.
credit report
.

You can get a complimentary credit report from each of the three primary credit reporting agencies:

• Equifax
• Experian
• TransUnion

You can obtain a complimentary credit report each year from A

nnualCreditReport.

com.

Should you possess any accounts with outstanding debts sent for collection, these will appear as distinct entries on your credit report. When a collection account appears on your credit report, reach out to either the creditor or the debt collection agency mentioned. However, keep in mind that not every collector submits information to credit reporting agencies.

Contact Your Original Creditors

If you’re aware of an outstanding debt that remains unpaid, reach out to the initial lender—despite uncertainty about who currently holds your obligation. This creditor ought to inform you whether the debt has been transferred or sold to a collections agency.

Pro Tip

Whenever you communicate with a creditor, maintain thorough documentation of the contact details including telephone numbers and timestamps of your calls within a notebook or a spreadsheet. Record the conversation’s content along with identifying information about whom you talked to. This will provide evidence of all interactions that are systematically arranged for quick access, safeguarding you from potential scammers or future legal disputes.

Should the debt get sold, the initial lender won’t be able to discuss terms with you anymore—instead, you’ll need to reach out to the debt collection agency.

Examine Previous Correspondence and E-mails for Collection Notifications

Debt collection agencies receive payment solely when they manage to retrieve funds from you; therefore, typically, you’ll be aware if your account has been sent to collections. Nonetheless, should you relocate or update your telephone number, a collector might attempt to connect with you using outdated contact information. Apart from making phone calls and sending texts, these agents may also communicate through letters, emails, and direct messages over your social media platforms.

Understand Your Rights When Interacting With Debt Collectors

Here are your rights when interacting with debt collectors, as outlined by the Consumer Financial Protection Bureau (CFPB):

• 
  Validation:
  
  Within five days after initial contact, debt collectors are required to disclose their identity, the total debt owed, and provide information on how to contest the debt.
• 
  Time limits:
  
  Collectors aren’t allowed to phone you before 8 a.m. or after 9 p.m., unless you have consented to such calls. Additionally, they must cease contacting you at your workplace once you’ve asked them to do so.
• 
  Call frequency:
  
  A maximum of seven calls within a 7-day span. Additionally, there should be a mandatory 7-day break following any telephone conversation regarding the identical debt.
• 
  Communication:
  
  Debt collectors may reach out to you via telephone, postal mail, email, text messages, or social media platforms—provided you haven’t instructed them not to.
• 
  No harassment:
  
  Debt collectors cannot employ threats, use profane language, or make repeated calls solely to intimidate you.
• 
  No lying:
  
  They cannot misrepresent the debt amount, impersonate another person, or falsely claim impending legal action.
• 
  No unfair practices:
  
  No hidden charges, premature check redemption, or disclosing your financial obligations to third parties.
• 
  Protecting your privacy is important:
  
  They aren’t allowed to include details on the envelope exterior that would indicate they are a debt collector.

Request Debt Collectors to Confirm the Debt

Under the Fair Debt Collection Practices Act, consumers possess the authority to demand verification of their debts from debt collectors. Should you get a debt collection notice regarding a debt you’re uncertain about, you have the option to request validation of that debt.

Here’s how:

1. Within 30 days from receiving the collection notice, send a letter to the debt collector.
2. The letter must indicate that you contest some or all of the debt.
3. As soon as the debt collector gets your letter, they cannot reach out to ask for payment until they respond to you and confirm the validity of the debt.

What Actions Should Be Taken Once You Pinpoint Your Collectors?

Once you pinpoint the debt collectors you’re indebted to, cross-check the sums they claim you owe with your own financial documents, like your latest credit card statements.

Next, determine if you wish to pay off, renegotiate, or contest the debts. Should you be uncertain about your course of action, reach out to a non-profit credit counseling agency like the National Foundation for Credit Counseling for assistance.

Pay Off the Debt

The simplest approach to handling debts in collection is to
settle your debts
. Ensure, however, that you’re compensating the correct party.

When your debt has been sold, simply paying the initial creditor won’t suffice since the collection agency currently holds the rights to the debt. Keep in mind that settling your obligation may have no impact on your credit rating.

Your credit report will reflect that the collection account has been settled, yet this information will stay on your record for seven years from the initial delinquency date.

Negotiate the Debt

If you’re unable to repay the full debt,
You could potentially negotiate your debts.
By repaying a reduced sum in return for the lender waiving the remaining debt. Follow these steps:

1. Ensure you’re discussing with the party that holds your debt, be it the collection agency or the initial lender.
2. During negotiations, you have the option to propose a single large payment or to devise a fresh, more adaptable repayment schedule.
3. Keep in mind that the creditor or debt collector isn’t obligated to reach an agreement with you.
4. Should you manage to come to an understanding, ensure you put it in writing. This way, you will have documentation of the agreed-upon conditions should the creditor or debt collector later claim that you still owe funds.

Dispute the Debt

Sometimes, the debt may genuinely not belong to you, for instance, if your identity has been stolen.

Should you get a notification from a collections agency about a debt that doesn’t belong to you, immediately contest it. Below are your options:

1. Record your disagreement in written form within the initial 30-day period.
2. As soon as the collection agency gets your dispute, it needs to stop communicating with you until it gives proof of the debt.
3. You should also challenge the details with all three credit reporting agencies.
4. Offer extensive details to demonstrate that you did not initially accrue the debt.

Advice for Preventing Subsequent Confusion

Understanding which debts you have and whom they are owed to is a crucial aspect of being financially responsible.

Configure payment alerts or set up automated payments to prevent late or omitted payments.

Maintain documentation of your debtors, the sums owed, along with the timing and value of each payment made.

Furthermore, keep an eye on your credit reports consistently to spot any missed payments or debt collection actions that might show up.

By maintaining well-organized and easily accessible information, you safeguard yourself, your finances, and ultimately conquer your debts.

Michael Keenan
participated in the research and writing of this piece.

The piece initially appeared on
:
How to Identify Which Debt Collectors You Are Owed By