Dealing With Collection Agencies FAQ

Questions:

• Should I deal with debt collectors or try to avoid them?
• Collection agencies have been calling me all hours of the day and night. How can I get them to stop contacting me?
• The collections department of a local merchant is harassing me. Can I do anything about it?
• A bill collector insisted that I wire the money I owe through Western Union. Am I required to do so?
• Can a collection agency add interest to my debt?
• A collection agency sued me and won. What collection measures can it now take against me?

Answer:

A bill collector insisted that I wire the money I owe through Western Union. Am I required to do so?

No. Many collectors, especially when a debt is more than 90 days past due, will suggest that you make an "urgency payment," by doing things like:

• sending money by express or overnight mail, which will add at least $10 to your bill
• wiring money through Western Union's Quick Collect or American Express's Moneygram, another waste of money, or
• putting your payment on a credit card -- you'll never get out of debt if you do this.

Mailing your payment with a first-class stamp is fine. Or, pay by debit card or check card -- but first ask if the creditor will charge a fee. If you send your payment through the mail, you may receive further phone calls from the collector until the creditor receives and processes your payment.