Dealing With Debt Collectors - And a Sample Letter

Reader Question: "I have been receiving phone calls from debt collectors all throughout the day. They are rude and loud, and they call over and over about the same thing. I intend to pay what I owe as soon as I'm able, but in the meantime I want to be left alone. What do you recommend for dealing with debt collectors like this?"

The best thing you can do is pay off the debts that you owe, as soon as possible. Unpaid bills can stay on your credit report for up to seven years, during which they can lower your credit score. If it goes unpaid, it can be sold from one debt collector to another, which means it will be reported over and over again. So the best way of dealing with debt collectors is to pay what you owe -- as long as it's a legitimate debt.

I know you're aware of this, but I had to include it for other readers. So let's move on to the question you asked. What can you do in the meantime, while you are trying to pay off the debt? How do you deal with rude and annoying debt collectors who call you all the time? Fortunately, there's an easy solution to this. You can send them a written notice to stop contacting you. They are required by law to honor that request.

If you are being hounded by debt collectors, you are not powerless. You can simply ask them to stop contacting you (in writing), and they must honor that request. If they ignore the request, then they are violating the Fair Debt Collection Practices Act (FDCPA).

Here's a sample letter you can use to get debt collectors to leave you alone:

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Sample Letter for Collection Agencies

Your Name
Your Address

Date

Name of Collection Agency
C.A. Address
Subject: Debt Collection Against [Your Name]
Creditor Name: [Creditor]
Account No. [Number]


To Whom it May Concern,

In accordance with the Fair Debt Collection Practices Act, I am sending this written request that you stop contacting me about my account (see creditor and account number above).

[If you intend to repay the debt at some point, like when you find a job, you could include a brief message to that effect. But I wouldn't offer too many details. Keep it simple.]

Sincerely,

[Your Name]

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Pretty simple, right? This is the best way of dealing with debt collectors who call you over and over, or harass you in some other way. Don't call them names. Don't use profanity. Be professional and get straight to the point. The law is on your side when it comes to dealing with these folks, so you don't need to resort to a shouting match. Just send the letter and keep track of any communications after that (in case they ignore the letter in violation of the FDCPA).

If they violate this law, and you can prove it in a court of law, you could win a judgment against the collection agency. If you win such a case, you could recover any damages you've incurred plus your legal fees. In most states, your first line of defense is the state attorney general's office. You can also report the debt collectors to the FTC, which is the federal agency that enforces these laws.

Dealing With Collectors Does Not Erase the Debt

It's important to point out that this does not make your debts go away. It's simply a way of dealing with debt collectors who call you constantly. They must stop calling if you send a letter like this, but you will still owe whatever you owe. In fact, you could still be sued for a legitimate debt, even after sending a letter like this. It's stops their communication, but it does not take away their legal right to file suit.

I've said it before, but I'll say it again. The best way to permanently solve the problem is by paying what you owe. This will help you restore your credit, and it will eliminate the emotional strain of having unpaid debts. This kind of situation can wear on you over time. It can take an emotional and physical toll. So do whatever you can to resolve it once and for all, even if that means getting help from a non-profit debt counselor.

Disclaimer: This article is a general guide to dealing with collection agencies. It should not be taken as legal advice. If you feel you are being harassed by a debt collector, you should contact your state attorney general's office for help. You should also familiarize yourself with the Fair Debt Collection Practices Act, which is linked to above. Remember, the law is on your side when dealing with these people, so you must first understand the law and the rights you have.