In the first three parts of this series I wrote about collections accounts, described how sending unpaid accounts out to an agency helps out a creditor, and described the practice of selling an old debt to a third party collection agency. I spoke about the type of information that a collection company will obtain to utilize in their efforts, and the type of laws that third party collection agencies must follow. I described illegal and legal tactics that debt collection agencies use to collect.

I reminded you that most debt collectors realize that it is imperative to collect on your accounts as soon as possible. Many will ask you why you can’t pay today, and many will attempt to manipulate your emotions or insinuate that you are fiscally irresponsible to upset you into agreeing on a payment.

Another strong arm method utilized by collection agents is to upset a consumer by manipulating their emotions, and then transfer them to an agency supervisor. By this time the debtor might be angry or frustrated and it will be more probable that they would agree to something easier simply to get off the phone. If you find yourself in this situation, try to remain calm throughout the conversation.

Keep in mind that you aren’t talking about a mortgage payment; the debt collector can’t take your house away if you can’t make the payments that they are specifically requesting. Don’t let the collection agency manipulate you into agreeing to something that you cannot afford at the moment or intimidate you into doing what you don’t want to do.

Do your best to remain firm and stick to the terms that both parties agreed on. After working out a payment plan, as with ANY financial decision, confirm your agreement in writing by sending a written plan by certified mail, return receipt requested to ensure delivery and proof that the agency received it.

Rapid Recovery Solution does commercial debt collections and writes articles on medical collection companies. Free reprint avaialable from: Collection Agency Basics Part Four: Tactics A Debt Collector Uses And What To Do After You Have Paid.

In the last article in this series I wrote about how long different marks remain on your credit report. I mentioned that mistakes will be removed immediately, soft inquiries will have no effect, and hard inquiries can hang around on your credit report for two years. Late payments have the capacity to do way more damage.

Despite the fact that some creditors may choose to show you mercy and remove past credit problems if you pay your account immediately, late payments can have an effect on your credit score for seven years. Luckily, these negative marks are common and do less damage to your score than the rest of the marks I will go on to discuss.

With a tax lien comes seven years of bad credit. When you do not pay your income or property taxes when they were due, and the government comes in and takes ownership of your property, you are dealing with a tax lien. Unlike creditors, no matter how fast you settle your tax lien, big brother is annoyed that you made him go out of his way to take your property, and it will stay on your record for seven years.

Foreclosures are equally as damaging and they will be on your credit report for seven years. Foreclosures are looked at as one of the worst negative accounts that can appear on your credit report. In fact, if you do have a foreclosure on your credit history, good luck buying another home unless you are planning to pay for it all in cash.

It’s not the good old days anymore, so never default on those student loans either. Before the administration of President W., student loans generally were forgiven if they were declared when someone filed for bankruptcy. Now times have changed, so it’s crucial to pay your student loan debts. After 270 days of nonpayment, defaulting occurs, and before the loan defaults, you can bet your life that you will be the unlucky recipient of a whole slew of late payment fees.

The last, and most serious negative mark that can go on your credit report is bankruptcy. Bankruptcy will stay on your record for ten years, and instead of having a creditor pull your report, you might as well get in contact with them and say “I am fiscally irresponsible and will be that way for the next ten years.” Filing for bankruptcy can put a damper on your ability to get a new car, any type of new credit or a new place to live. So watch your credit report, or you might end up living with that rude mother in law I wrote about in article one.

Mallory Megan works for Rapid Recovery Solution and writes articles on commercial collection agencies. Unique version for reprint here: How Long Will A Negative Mark Stay On Your Credit Report Part Two.

The Fair Debt Collection Practice Act is a federal law full of rules and regulations that are designed to protect debtors from bill collectors who may utilize illegal strong arm tactics to collect money that is owed. The FDCPA seems to realize that one way many dishonest debt collectors may try to collect money is through embarrassment, and humiliation and therefore goes out of its way to provide a variety of rules designed to honor your privacy. Debt collectors have the ability to speak freely with credit bureaus and they have the authority to mark up your credit report.

However, if they have a list of creditor subscribers, they are expressly banned from sending out a list of its debtors to these businesses. They are additionally forbidden from advertising a debt for sale. In terms of third parties, debt collectors are not permitted to leave messages with third parties asking that the debtor call them in regards to money that is owed. If a collections letter is being sent out, they cannot indicate that the purpose of the letter is to collect a debt in anyway. Hence, postcards are not permitted to be used by collection agencies.

A collector can send you mail in care of another person, but only under the circumstances that you reside at a shared address, or if you receive your mail at someone else’s address. If you do share your address with others, the mail should have a “private” or “personal” label on it. It is crucial that collections letters do not give any appearance that allude to the fact that it is a collections bill.

A bill collector that already knows your name, telephone number and address and thus can get in touch with you directly is never allowed to get in touch with your family members or friend. If they can’t locate you and they do call your neighbors or family members, the collections agent has to identify themselves by name, but they cannot mention the fact that they are a debt collector. They can not inform others that you owe a debt or talk to them about account details.

They are prohibited from contacting the person more than once, and they cannot leave information about the debt on another person’s voicemail. Additionally, if they are asked, they must disclose the name of the collection agency they represent but will not offer this information without first being questioned.

If you are being contacted by a collector looking for your former roommate, relative or neighbor, the Fair Debt Collection Practice Act says a debt collector can only contact you to determine the location of the person who owes the money once. Only if the collector believes you have new information can they contact you again. If a collector contacts you repeatedly about a third party that can be considered harassment and you can file a complaint.

Mallory Megan works for Rapid Recovery Solution and writes articles on commercial collection agencies. This article, If I Am In Debt, Who Can A Bill Collector Contact About It? is available for free reprint.