Dealing with debt collectors can be intimidating, but understanding your rights and knowing how to respond can empower you to handle the situation effectively and resolve your debts. As a leading player in the field, Jefferson Capital Systems reviews the steps consumers can take to ensure responsible and mutually beneficial debt collection practices.
JCAP is an analytically driven debt buyer based in Sartell, MN, known within the accounts receivable industry as one of the nation’s leading purchasers of secured and unsecured consumer debts in bankruptcies and charged-off receivables. The company was founded on core values such as integrity, respect, fairness, compliance, and communication. It utilizes these principles to help hundreds of thousands of account holders find sustainable solutions to financial challenges and forge a path towards the future.
When contacted by a legitimate debt collector regarding a debt that is owed, it’s essential to be informed about the account and be willing to communicate in a productive manner with the debt collector. Communication is key; it increases the chances that you will be able to come to a mutually satisfactory resolution. Discussing past due bills may be uncomfortable for many people, but open and honest communication is critical to resolving the account in a workable manner. When working to resolve a debt, it is helpful to explain your situation to the debt collector. With their experience, they may have solutions for you. Let them know your intentions—be specific with actions and timeframes. Again, communication is the key.
A Guide to Navigating Debt Collection
Verify the Legitimacy of the Debt Collector: Before engaging with a debt collector, verify their legitimacy. Legitimate debt collectors are willing to provide certain information, including their company name, their client’s name, a call back number, their website address, and information regarding the account they are collecting. Ask for this information and cross-reference it with your records to ensure accuracy. Legitimate debt collectors, such as JCAP are certified members of the industry trade groups RMAi or ACA International. In order to become a member of these organizations, the debt collector must agree to a code of conduct and post on their website information on how to verify the debt collector is legitimate. When contacted by a debt collector, check out their website to make sure they are a member of an industry trade group.
Know Your Rights Under the Fair Debt Collection Practices Act FDCPA): The FDCPA outlines specific rights for consumers when dealing with debt collectors. Familiarize yourself with these rights, which include the right to request validation of the debt, the right to dispute the debt, and the right to request that the collector cease contact. A good resource for learning about your rights is Know My Debt. Facts about debt collection rights and consumer financial education.
Request Validation of the Debt: If you believe there may be errors or discrepancies regarding the debt, you can request validation of the debt from the debt collector. Send a written request within 30 days of initial contact, asking for detailed information about the debt, including the original creditor, the amount owed, and any relevant account numbers. If you ask a debt collector during a telephone call, to verify the amount that you owe, some debt collectors will provide you with the information needed for validation of the debt. However, to trigger a debt collector’s legal obligation under federal law to provide verification or provide the name and address of the original creditor, your request for verification or original-creditor information must be in writing.
Communicate Assertively and Respectfully: When communicating with debt collectors, maintain a respectful tone while asserting your rights. Clearly state your requests, such as asking for validation of the debt or requesting that the collector cease contact. Keep records of all communications, including dates, times, and the names of individuals you speak with. Debt collectors realize that consumers are often under a lot of stress when dealing with unpaid obligations, and will try to work with consumers in a respectful manner. However, disrespectful communications by either party will make resolving the debt more difficult and stressful.
Consider Negotiating a Payment Plan: If the debt is valid and you are in a position to repay it, consider negotiating a payment plan with the debt collector. Be honest about your financial situation and propose a realistic payment schedule that you can afford. Frequently, websites for debt collectors include payment portals that allow a person to resolve their debt without needing to speak with someone over the phone. If you prefer to speak with someone over the phone, the call will generally begin with the debt collection representative asking you questions to confirm your identity, such as your name, date of birth, address, or the last four digits of your Social Security number. This is to protect your privacy, to verify that you are the correct contact and to confirm that this debt is your obligation. Then, the collector will discuss the account and options for repayment of the obligation.
Don’t ignore a debt: If you owe the debt and don’t resolve it, the debt may end up on your credit report, potentially affecting your access to credit, assuming that the debt collector or creditor reports debts to a credit reporting agency like TransUnion, Experian, or Equifax.
Additionally, if you don’t resolve it, the debt may ultimately end up as a court judgment taken against you, assuming that the debt is one upon which you can lawfully be sued and the creditor wants to take a judgment against you to enforce the debt. If you believe you don’t owe the debt or don’t owe the amount sought, find a way to communicate with the debt collector and let them know! The professional debt collector’s role is to collaborate with the consumer and the creditor to find solutions and aid in the resolution of defaulted debts.
This can include resolving disputes about debts that may not be owed for one reason or another and negotiating payments or settlements of defaulted debt where the circumstances call for it. Whether you believe you owe the debt or not, arrange to speak with the debt collector at a time when you have access to your relevant records and have time to have a meaningful conversation with the debt collector. By discussing potential disputes, questions, and resolutions with the debt collector, you’ll do your part to limit the consequences of collection activity, help resolve any potential errors, reduce or eliminate the debt collector’s need to contact you in the future, and resolve the outstanding alleged debt.
Conclusion
Remember, while it’s important to address legitimate debts responsibly, you have rights and protections under the law. JCAP strives to help consumers navigate their journey to financial stability with confidence and clarity. By prioritizing compliance and embracing best practices, consumers can be assured that the company is an ethical and legitimate debt collector that wants to work towards positive outcomes for both consumers and creditors alike.