I got a call recently from a close friend who was a bit disturbed by a phone call she received. See, over the last few years, she has been very diligent with staying debt free, paying her bills on time and keeping a close eye on her credit scores.
Life didn’t start off this way for her, but she has been able to accomplish so much by sticking to her plan. Now, she is seeing the benefits of her hard work.
Well, back to the story. She received a phone call from a collection agency. The collector started off with the preliminaries verifying name, previous addresses, etc. Receiving these types of phone calls is out of the norm for her so she asked that he get straight to the point.
He was trying to collect on a automatic deduction payment debt that she cancelled sometime last year. The collection amount was about $89.00. She politely informed him that she did not owe this debt and that there must be some miscommunication.
At some point and time during the conversation, he even offered to settle the debt for $70.00. Again, she declined and stated that she would call the original creditor. The collector stated that she could do that, but to save herself some time and trouble she could just pay the debt…“That way, it won’t go on your credit. It’s only $70.00”, he said. Her response to him was…“I’ll just take my chances.”
She did not allow the collector to intimidate or coerce her into paying a bill she did not owe. She immediately called the original creditor and got the matter cleared within a few minutes. I love the fact that she showed the greater strength, as Abraham Lincoln said -
Be sure you put your feet in the right place, then stand firm.
Don’t get me wrong; I know that talking to most collectors is like talking to a rock. They don’t hear you. But what’s so important about this is that she had a leg to stand on . My friend knew she didn’t owe the bill and had the records to back up her claim.
As I see it, there are a few things she did right:
Spoke respectfully. There’s no sense in getting agitated over an easily solvable matter.
Kept good records. The best thing to do this day and age is to leave some sort of paper trail. This can be by way of written contracts, bank statements, cancelled checks, emails, etc. When questions about payments arise, the proof is easily accessible.
Followed up immediately with the original creditor. I know…it’s a pain in the rear, but allowing problems to linger only makes it worse later.
Asked for proof that the debt has been cleared. This is very important. Having a statement from the original creditor can be useful if this debt resurfaces in the future.
If this was a debt my friend really owed, this would have been a different story. More on that later; but for now, if you owe a debt and are being contacted by a collector, here’s my advice: Don’t allow yourself to be bullied. Collectors do have rules and laws that they are held accountable to. I encourage you though to find a way to resolve your debts so that you can build a solid financial house. A house with holes in a few windows (the bad debts) doesn’t look too appealing. Does it?
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As always, thank you so much for reading. If you have a question or a tip of your own to share, feel free to do so in the comments. Also, don’t forget to spread the word about PFN – new readers are always welcome. 
Standing Tall Image by Orin Zebest
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Good article. Too many times we just give in to this type of bullying, just to avoid the “hassle” of pursuing what is right.
Definitely. I just found this article (http://bit.ly/bUAFj3) today where a man was awarded $1.5 million dollars against a vulgar debt collector. It’s one thing to collect a debt, but there is a line that just doesn’t have to be crossed. Thanks Khaleef.
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