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Common Mistakes When Working With a Debt Collections Agency

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Common Mistakes When Working With a Debt Collections Agency

Debt is a common issue, and many people need help handling the growing numbers. When facing this situation, working with a debt collection agency is important. As it can be overwhelming at first, remember the agency is there to assist you in managing your debt effectively. Here are some common mistakes people make when working with a debt collection agency.

Avoiding Contact With Debt Collector

First, do not avoid calls or ignoring letters from the debt collector. This can make things worse and simply will not solve your problem. If the debt collector feels you are ignoring the problem, it could add additional interest, fees, and sometimes, a lawsuit. Instead, answer the phone and discuss your options. 

Failure to Set Goals

Setting realistic goals with the debt collector is important for getting out of debt. This can include a timeframe, an amount you want to pay by a certain date, and other strategies. A plan is the best way to get your debt paid off, and the debt collections agency can help you set yourself up for success. 

Poor Documentation

You should check that your debt documentation is correct and current. Proper documentation will make it easier for the debt collection agency to process your debt and prevent delays. Delays can lead to high interest rates and late payment penalties. The best approach is to get organized and prepare your paperwork thoroughly.

Making Payments To The Credit Card Company

A common mistake is paying the original credit card company rather than the debt collection agency. This can cause various problems, creating a delay between the two. If you want to pay more towards your debt, you can. Just do it through the debt collections agency so they can confirm that your credit score will not be affected. 

Not Being Aware Of The FDCPA

The FDCPA, or the Fair Debt Collection Practices Act, is often unknown to people in debt. The act helps protect you against unfair or abusive relationships with debt collector agencies. It is recommended that you review your rights before you start your journey with a collections agency. 

Working With The Wrong Collections Agency

You will want to find a debt collection agency with a good reputation that can help you reach your goals. Choose an agency with significant experience assisting people to get out of debt while maintaining clear communication of your process.

Alexander, Winton & Associates Inc. aims to be the debt collection agency that the freight industry can trust. From providing realistic goals, clear communication, and a detailed plan, our trustworthy debt collection agency is here to help you climb out of debt. Give us a call today, send us an email, or fill out our online contact form!

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