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If you owe money to a creditor debt collection agencies can report your debt to credit bureaus, file suits against you, and should be taken very seriously. The best way to protect yourself and your finances is a methodical approach. First, know why you are being contacted. Know what the debt is from and exactly how much it costs.

Ask about the name of the person calling, the agency, the creditor, and the agency’s address and fax number. You have the right to inform a collector over the phone that you want all future conversations to be in writing. Follow up all requests with a written request.

Keep in mind if you tell the collector not to contact you at all it is allowed to contact you once more to let you know how it plans to proceed. Another request that can be made is that you are the only person that could be contacted. It might be savvy to keep a file with dates and details of phone conversations and when you send or receive letters.

If you do send any written correspondence to the collections company do this by Certified Mail, Return Receipt Requested. This guarantees that the letter reached the collector, giving you a signed receipt as proof. If you work out a re-payment plan over the phone, ask for the terms of the plan in writing. Any promise to remove or adjust credit history should also definitely be documented.

Double check that you pay the right party; payments should be made to the collections company, not the creditor, unless otherwise instructed to do so. Closely examine the amount you are being asked to pay. Get an assessment of any interest, fees or charges that have been added.

If you feel like your collector is being abusive or hostile, make sure that you mention it to the agency and keep this complaint on file. The last thing to keep in mind is don’t ignore a collector. Even if you feel that the debt is not yours; they will continue to call and it may mean more trouble and time in the long run.

Mallory Megan works for a debt collection agency. Also she writes articles on business and finance, consumer spending and collection agencies.

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