When in debt, you should learn how to deal with a debt collection company in order to avoid being intimidated or mislead. The first thing to know is that different rules apply to bailiffs and debt collection firms when it comes to your possessions. There are a lot of misconceptions about what creditors can do and what they cannot do. Get well-informed and handle the debt collectors well.
Find out your situation
The first thing to do if you want to handle the debt collecting companies well is finding out what you owe and to whom. Find out exactly what they want, how much you owe them and where the debt they collect has come from. A wise thing to do would be writing to the collection agency for a copy of your credit agreement and also tell them you only want to be contacted post. It is important to find out your situation in order to fight against it.
What can you do if you owe money?
After you discovered how much you owe and to whom, what should you do next? If you owe money you should evidently pay them. If you afford it, then just pay up and don`t delay this task. If you don`t owe that sum of money, construct a repayment plan with the debt collection agency, and set a nominal amount each month.
Can the debt collectors take possessions?
If you find yourself unable to pay right now, can the collectors take your possessions? The answer is yes, but they can only take certain possessions. There are some ground rules to this. When it comes to bailiffs, the collectors can take luxury items away from you, including your car or the garden equipment. However they cannot take any things you need for your daily life, such as clothes, furniture, or items that do not belong to you. In the case of wages, a debt collector will need court approval in order to take your payment direct from your employer. However, this is very likely in case you are being sued.
What can`t the creditors do?
There are several things that the creditors cannot do. Under no circumstances the creditors can harass you. You should request that the only contact you in writing, but make sure you always reply politely. The creditors cannot also stalk you on social media or break data protection laws. Get informed on your rights in order to handle the debt collectors.