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“It is the debtor that is ruined by hard times.” 
~Rutherford B. Hayes 
Copyright © Lorene Collier Purcy: www.lorenecollie...
 Debt is one of the most stressful situations anyone 
can face. Dealing with collection agencies or debt 
collectors is e...
Your Rights and the Law 
 
 Within 5 days of the initial contact with you, the collection 
agency is required, in writin...
Guidelines of the Fair Debt 
Collection Practices Act (FDCPA) 
 
• It’s illegal for a collection agency to threaten you 
...
Guidelines of the Fair Debt 
Collection Practices Act (FDCPA) 
 
• It’s not permissible for a collection agency to contac...
 
“When a man is in love or in debt, 
someone else has the advantage.” 
~Bill Balance 
Copyright © Lorene Collier Purcy: ...
Your Options if Debt Collectors 
are Breaking the Law 
 
• Make note of the date, time, and name 
of the debt collector. ...
Your Options if Debt Collectors 
are Breaking the Law 
 
• Original creditors sometimes cancel 
debt due to liability con...
Things to Consider When 
Negotiating with Debt Collectors 
 
 The debt collector’s only concern is quickly 
collecting a...
Options for Negotiating 
Your Debt 
 
 Eliminate your debt with a one-time lump settlement. Every 
collection agency wil...
 
Talking about debt collectors... 
“One guy called me everyday last week. I said, 
'Look, every month I put everyone I o...
Finding the Money to Satisfy 
Your Debt 
 
Get a 
second 
job 
Ask family 
& friends 
Cut 
expenses 
Sell some 
assets 
C...
Steps to Creating a Positive 
Financial Future 
 
Debt 
Positive 
Future 
Copyright © Lorene Collier Purcy: www.lorenecol...
 
“Debt is like any other trap, easy 
enough to get into, but hard 
enough to get out of.” 
~Henry Wheeler Shaw 
Copyrigh...
Removing Negative 
Credit Information 
 
Get copies of your credit reports from all three major credit-reporting 
agencie...
Adding Positive Information 
to Your Credit Report 
 
Make your payments on time. 
• Simply paying your bills on time has...
Adding Positive Information 
to Your Credit Report 
 
Avoid applying for too much credit. 
• When you apply for credit, y...
 
“Creditors have better memories 
than debtors.” 
~Benjamin Franklin 
Copyright © Lorene Collier Purcy: www.lorenecollie...
Reminders for Your Peace of Mind 
 
You’re not going to 
prison just because 
you’re unable to pay 
your debts. 
You can ...
Conclusion 
 
 Debt collectors are a tiresome burden and they can really 
detract from the quality of your life! 
 If y...
 
“Some debts are fun when you 
are acquiring them, 
but none are fun when you set 
about retiring them.” 
~Ogden Nash 
C...
Get Help Addressing Your Debts 
 
Dealing with collection agencies or debt collectors is 
unpleasant. There are many thin...
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Go Head to Head with Debt Collectors and Come Out Smiling

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Debt is one of the most stressful situations anyone can face. Dealing with collection agencies or debt collectors is even more unpleasant.

There are many things you can do to reduce your debt and stop the daily harassment. It’s important to address your debt and debt collectors directly.

Published in: Economy & Finance
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Go Head to Head with Debt Collectors and Come Out Smiling

  1. 1. “It is the debtor that is ruined by hard times.” ~Rutherford B. Hayes Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  2. 2.  Debt is one of the most stressful situations anyone can face. Dealing with collection agencies or debt collectors is even more unpleasant.  There are many things you can do to reduce your debt and stop the daily harassment. It’s important to address your debt and debt collectors directly.  There is actually very little a debt collector can do if the debt is unsecured. Knowing this puts you in a powerful position. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  3. 3. Your Rights and the Law   Within 5 days of the initial contact with you, the collection agency is required, in writing, to provide information regarding the debt. This includes the nature of the debt and your right to dispute it.  You have 30-days to dispute the debt, in writing. No further collection attempts or communication may occur until the debt has been verified in writing.  Knowing your rights is the best way to fight back against debt collectors. The Consumer Credit Protection Act (CCPA) contains the rules that you’ll find most useful. This act only applies to secondary parties, such as a collection agency, and not the original creditor. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  4. 4. Guidelines of the Fair Debt Collection Practices Act (FDCPA)  • It’s illegal for a collection agency to threaten you with arrest for your debt. • Collection agencies can only make phone calls between the hours of 8 a.m. and 9 p.m. in your time zone. • The collection agency isn’t allowed to use inappropriate language or unreasonable threats. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  5. 5. Guidelines of the Fair Debt Collection Practices Act (FDCPA)  • It’s not permissible for a collection agency to contact your friends, family, coworkers, employer, or neighbors to discuss your debt. They may contact your employer to verify your employment, but that’s all they may inquire about. • No one from a collection agency can pretend to be a court employee or an attorney. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  6. 6.  “When a man is in love or in debt, someone else has the advantage.” ~Bill Balance Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  7. 7. Your Options if Debt Collectors are Breaking the Law  • Make note of the date, time, and name of the debt collector. • Record the nature of the call. • Have a third party witness. Document illegal communication or behavior • The FTC regulates collection activities. • You can file your complaint online. File a complaint with the FTC (Federal Trade Commission) • Find an agency that regulates debt collection. • The state government website can help. Send a copy of the complaint to a state level agency Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  8. 8. Your Options if Debt Collectors are Breaking the Law  • Original creditors sometimes cancel debt due to liability concerns. • The collection agency might also toss the debt back to the original creditor. Share complaint with the creditor and the collection agency • Any violation of the FDCPA results in a $1,000 fine. • Take the case to small court, or choose regular court if you can afford counsel. Sue the collection agency Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  9. 9. Things to Consider When Negotiating with Debt Collectors   The debt collector’s only concern is quickly collecting as much as possible.  The collection agency wants to minimize its costs. Collection agencies would rather get a reasonable amount today than the full amount in 6 years.  Know your financial situation. If you don’t have the financial resources to make a lump sum payment or keep up with a payment plan, there’s little point in attempting to negotiate. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  10. 10. Options for Negotiating Your Debt   Eliminate your debt with a one-time lump settlement. Every collection agency will likely accept a reduced amount as payment in full. Some agencies will accept 50%.  Remember your credit report. Your credit score will take a hit if your debt has reached the collections phase. If you’re willing to pay something to settle your debt, the collection agency and the original creditor may clean up your credit issue.  Set up a payment plan. If you decide to go this route, understand that you’ll likely be on the hook for the full amount. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  11. 11.  Talking about debt collectors... “One guy called me everyday last week. I said, 'Look, every month I put everyone I owe into a hat, I pick three names, I pay those people. And if you call me one more time I'm taking you out of the hat.' They all want to be in the hat.” ~Margaret Smith, Comedian Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  12. 12. Finding the Money to Satisfy Your Debt  Get a second job Ask family & friends Cut expenses Sell some assets Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  13. 13. Steps to Creating a Positive Financial Future  Debt Positive Future Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  14. 14.  “Debt is like any other trap, easy enough to get into, but hard enough to get out of.” ~Henry Wheeler Shaw Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  15. 15. Removing Negative Credit Information  Get copies of your credit reports from all three major credit-reporting agencies. Dispute negative information. If they fail to verify the information on time (30 days) or don’t have the supporting information, `the item must be removed from your credit report. Get a new copy of your credit report to verify that the unverified items have been removed. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  16. 16. Adding Positive Information to Your Credit Report  Make your payments on time. • Simply paying your bills on time has a huge positive effect on your credit score. Take out a loan. • While having a loan doesn’t boost your credit, paying off a loan does. Put down cash collateral to get a loan, then use that loan amount to apply for a loan elsewhere. Get a credit card and be responsible. • Credit cards have the potential to be positive or negative, depending on your ability to use them responsibly. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  17. 17. Adding Positive Information to Your Credit Report  Avoid applying for too much credit. • When you apply for credit, your potential creditor will do a credit check. Credit checks lower your credit score. Keep your credit card balances low. • If you’re using more than 30% of your available credit, it’s hurting your credit score. Ask to become an authorized user on another’s account. • If you know someone with stellar credit, ask to be listed on their account. You’ll be associated with their credit report. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  18. 18.  “Creditors have better memories than debtors.” ~Benjamin Franklin Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  19. 19. Reminders for Your Peace of Mind  You’re not going to prison just because you’re unable to pay your debts. You can easily stop all communications from debt collectors by making the request in writing. Your wages can be garnished up to 25%, but the creditor will have to win a lawsuit first. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  20. 20. Conclusion   Debt collectors are a tiresome burden and they can really detract from the quality of your life!  If you have significant debts, bankruptcy might be another option to consider. It would be worth contacting an attorney to explore the possibility of eliminating much of your debt.  For your own peace of mind and a secure financial future, it’s important to address your debts directly and start working on solutions to both eliminate your debt and boost your credit score. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  21. 21.  “Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.” ~Ogden Nash Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com
  22. 22. Get Help Addressing Your Debts  Dealing with collection agencies or debt collectors is unpleasant. There are many things you can do to reduce your debt and stop the daily harassment. Don’t wait. Start now. Get started today by downloading this helpful worksheet. Copyright © Lorene Collier Purcy: www.lorenecollierpurcy.com

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