Be an Informed Consumer
Consumer Guide to Debt Collection Practices
Be an Informed Consumer
Just as there are different types of debt—good debt and bad debt—and different types of accounts— such as credit cards, store cards, loans, mortgages—here are also different types of debt collectors. Sometimes debt collection takes place at the creditor, sometimes this important financial process is outsourced to a third party. That’s where a debt collection company comes in.
Reputable debt collection companies, sometimes referred to as debt collection agencies, are professional and courteous. They are specialized companies usually with a dedicated, well-trained staff and robust processes. Working with a debt collection company may not have been your first choice but working with a debt collection company doesn’t have to be a negative experience.
The best debt collection companies will send you a clear and helpful letter, a formal notice which informs you that you owe debt related to something such as a credit card, student loan, or auto loan. You can think of this letter as a kind of promise that the company will only attempt to collect the debt they have been engaged to collect. It also may signal that something has been reported to one or all of the credit bureaus about your debt.
On this notice, you may find a few helpful items that should assist you in the repayment of your debt, such as:
You have nothing tolose from reading the letter that adebt collector sendsyou. Ignoring the letter will not make the debt disappear. Byreading the letter you will better understand who iscontacting you and why and what options you have inorder toput this debt behindyou.
The best debt collection companies will have certain credentials that make them a good fit for managing your debt and processing your payments securely from a bank account. In addition to following state and local debt collection laws as well as the federal Fair Debt Collection Practices Act (FDCPA), a debt collection service should have expertise and tools available to help customers to pay their debts.
If you want to review the credentials of a debt collection agency, here are a few things to look for:
You might also check to see if the company has a clear debt collector contact number, information about credit reporting, and notices about debt collection laws. If you are concerned about an entity purporting to be from Sphinx or one of our partners, please report the conduct to us immediately at 1-888-665-0374.
Ifyou have taken the steps above, you are aneducated customer. You know who iscontacting you and why and ifthey are areputable debt collection company. What now?
Now you can respond tocommunications from the debt collector orreach out onyour own terms. Tomove forward inyour financial future, you need tomake aplan torepay debt. The only way tosee what options are available inyour unique situation istoengage with the debt collector.
Most debt collectors want tomake this process aseasy aspossible foryou. Some debt collectors offer extended business hours toaccommodate calls from working professionals across all time zones, while others offer anonline 24/7 self-service portal oravirtual agent chat feature. However you prefer toengage, don’twait. Start onthe path toyour financial future today.
