Creditor Phone Calls
Save Thousands Without Creditor Harassment
I am constantly amazed at how many people choose not to enter a Debt Settlement program because they fear the creditor phone calls. They could save THOUSANDS of dollars, change their financial future, and retire when they want… But they don’t want to have to deal with the creditors on the phone. Perhaps they have had a bad experience in the past… Perhaps they have heard horror stories of abuse and harrassment… Whatever it is, the fear is real, and actually prevents them from being able to take advantage of a debt settlement program.
I am here to take this fear away.
First and foremost, there is no rule or law that says that you have to answer their calls. There is no further penalty for not speaking with your creditors. Don’t answer the phone if you don’t know who it is!
That being said, any debt settlement company worthy of your business is going to send a Limited Power of Attorney letter to each one of you creditors within 5 business days after your first deposit/payment (unless that creditor reacts in a negative way to this action). This letter lets your creditor know that you are entering into a debt settlement program (you are not just disappearing off the face of the earth), that you do intend to settle your debt (you’re just going to do it with negotiated lump sums), and it tells the creditor that they should be calling your debt settlement company rather than you.
Do not be fooled by any company who lets you get away with a ‘computer generated’ Limited Power of Attorney. Understand that no creditor will pay attention to a Limited Power of Attorney that has not actually been signed by you. You need to go with a company that asks you to print, physically sign, and fax the letter to them.
Creditor Rights
The original creditor has the legal right to call you in an attempt to collect the debt. Most original creditors will follow the directive of the Limited Power of Attorney letter. Most. Some will not. They don’t have to. Collections agencies are a different story and, by law, are not allowed to contact you by telephone as long as you tell them not to. Some may require the request to be mailed to them. Do it… it’s worth it.
There is no guy named Steve sitting behind a desk physically dialing your phone number. If you are late on your payment your phone number will be entered into a phone dialing system, programmed to call you at specific intervals throughout the day. If you do not pick up the phone no one gets mad at you. It simply never happened in the minds of a real person.
It’s also good if you understand that collections agencies are never working in your best interest. Your debt will be bought and sold throughout your program. Each time the debt changes hands, the Limited Power of Attorney Letter somehow disappears and needs to be sent to the new collection company. Just notify your debt settlement company and they will do it for you. If you feel you are being harrassed, again, tell your debt settlement company and they should contact that creditor for you.
The Fair Debt Collection Practices Act
The Federal Government knows that there are abuses by creditors. It’s a fact that there are many collection agencies who will take advantage of your lack of knowledge, therefore you lack of power, and consistently and constantly break the rules in an attempt to collect the debt. Many of these people are on 100% commission and every dollar they get from you is an additional dime in their pocket. Don’t let them run you over. Arm yourself with the knowledge of what collections companies are, and are not, allowed to do. Read the “Fair Debt Collections Practices Act”. You don’t have to read the whole thing. Most of what concerns the consumer can be found in the first half of the document.
If you feel a collector is not abiding by these rules, the threat of reporting them to the Attorney General should get them to stop.
If you have questions or comments, please fill out the form below and I will answer within 24 hours – If you want a phone call, please put your phone number in the message section. ALL INFORMATION IS STRICTLY CONFIDENTIAL AND WILL NEVER BE SOLD OR SHARED!
Don’t forget to anwer the math question below the form!
