If you have received a letter or telephone from a debt collection law firm, please do not panic. Many people are in trouble and their phones are calling through pay phones. It is one thing to negotiate with a normal collection agency, but what do you do when you contact a debt collection law firm? The first thing you should do is to stay calm. Receiving a debt collection letter from a law firm does not necessarily mean that you have been charged.
About 5% of bad debts were issued to lawyers responsible for debt collection. These types of debt collectors must follow the requirements of the Federal Fair Debt Collection Act (FDCPA) like any other type of debt collector. Your first contact with a debt collection law firm is likely to be like a normal collection process. It starts with collecting letters and telephones. This usually happens before any lawsuit begins.
What you should do when you are in debt for the first time. For example, read the letter of debt collection carefully and make sure that the debt you are required to pay is valid. In other words, make sure you actually owe the letter to say what you owe. But no matter what you do, don't ignore this letter. This is one of the worst things you can do with debt. If you try to work with a debt collector instead of ignoring him, you have a better chance to solve this problem.
When you contact a debt collection law firm, please verify the debt in writing. According to FDCPA, the company needs to do this. Write down notes for each conversation with the collector as soon as possible.
If you owe debt and cannot pay, let the company know. It may be willing to develop some kind of repayment plan, and in some cases, you can even repay the debt below the debt it owes.
If you do not believe that you are in debt, please file an objection. Send your dispute to a law firm through a certified mail and keep a copy for your records.
If you are sued, please be sure to speak to a consumer lawyer who specializes in debt collection. Initial consultation is usually free, and a lawyer can help you decide how to respond. Don't ignore notifications to court! If you do not appear, the recipient or creditor will get a verdict on your default, which may give them additional power to collect from you - for example, by detaining your salary or detaining money in your bank account. (State laws determine what they can do to collect - another good reason to talk to a lawyer.)
It is important to ensure that law firms do not break the law when they contact you. FDPCA protects consumers from debt harassment, so if you feel you have been harassed talking to a lawyer. Collectors, including law firms that have overdue debts, are judged to have committed illegal collection and harassment. In these cases, the consumers involved in the litigation will always be winners.
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