When it comes to the subject of debt collecting, there are a lot of misconceptions and misinformation. Here are some tools of the trade that you can use if a debt collector ever calls you. When the collection agent calls, the first thing you want to do is determine if this is a third party collector or an in house collector. Third party collectors are hired by creditors on contingency, while in house collectors are the creditors.

Ask the debt collector “Are you contacting me as a creditor or a third party collection agent?” Not only will this give the bill collector the impression that you are competent, but it is important to know, because third party debt collectors must abide by strict regulations enacted under The Fair Debt Collection Practices Act. Keep in mind that most debt collectors are third party ones.

The collection agent will read what is called a “mini Miranda.” What this means is that your telephone call is being recorded and anything you mention can be used by the agency to collect debt. After this they will ask you about the debt that they are calling about. Instead of responding in any way that would acknowledge that you owe debt, politely request some initial information from the debt collector before the conversation continues. By law, a third party debt collector is required to give you the name of the agency, their address, fax and phone number, and the name of the original creditor. Ask for all of this, the debt collector’s name, and their specific phone number.

After you have obtained this specific information, tell the debt collector you are busy right now and will call them back in an hour. Keep in mind that debt collectors will always try to achieve a sense of urgency and may insinuate that you must or should talk to them now, but you do not have to. Now, after hanging up, you are in control because the ball is in your court.

Take this time to try to recall if you know what debt the debt collector may have been questioning you about. If you remember legitimately acquiring the debt, and the amount of the debt is correct, call back the debt collector and ask them if there is some type of repayment plan you could work out with them. It’s important to pay off this debt before the debt collector marks your credit score negatively, or even recommends that the creditor file suit against you.

Mallory Megan works for Rapid Recovery Solution and writes articles on credit collection agencies. Unique version for reprint here: The First Thing You Should Do If A Bill Collector Calls.

Student loan debt is maybe the most tiresome, grueling type of debt that you can owe. For you to go to school, Uncle Sam has given out money, and he fully expects to get that cash back. Unlike most other loans, federal student loans are extremely hard to discharge in bankruptcy. A man that drove to Vegas and gambled himself into foreclosure has a much higher chance of being able to walk away from the situation than a student who borrowed money to go to school. Additionally, federal student loans have no statute of limitations and can be collected even from debtors’ Social Security Payments after they retire.

So what do you do if you are a student fresh out of school struggling to make ends meet? Get educated, again. A Collections manual, 2009 PCA Practices, was temporarily published on a public section of the Department of Education’s website. A guide for the private collection agencies that work with the Department of Education, this manual can prove to be a valuable resource for former students who are attempting to learn more about paying back their student loan.

This article is founded on what I have learned from the manual, and it hones in on the rare circumstances under which collection activity may be suspended on a student loan account. It also goes into how you would go about ceasing collection activity on your student loan if you really wanted to. According to the manual, collection agencies must immediately suspend collection activity on an account if the borrower disputes the amount that is being owed, for example, claiming that the debt was paid off, was never owed, or should have been canceled.

Collection activity should immediately be suspended if the borrower raises a legal defense against repayment. These might include a closed school, an ability to benefit, or circumstances under which the Department of Education might not be allowed to pursue collection. If the borrower receives a 65 Day Notice of Federal Offset, or 30 day Administrative Wage Garnishment notice, and requests a written review or hearing in response, the collection agency needs to suspend collection activity. Finally, if the borrower files a written or verbal complaint against the collection agency, collection activity must be suspended.

Unlike suspension of collection activity, which is temporary, ceasing collection activity is permanent. If you want your student loan debt collector to stop contacting you, you must request in writing that the collection agency stop all communications with you. In these cases the collection agency is allowed to contact you one final time to let you know how they plan to proceed. Keep in mind that requesting that collection activity on your student loan be stopped is not a very good idea, as after the section on ceasing collection activity comes a section that informs the collection agency that the Department of Education expects the collection agency to evaluate the accounts with these requests for litigation. So even though you may experience a period of peace, that one final phone call you receive very well might be to inform you that you are being sued for all of the money you owe.

Mallory Megan works for Rapid Recovery Solution and writes articles on medical collection agencies. This article, Straight From The Department Of Ed’s Manual – Suspending And Stopping Student Loan Collection Activities has free reprint rights.

Almost everyone who has been in debt has received the dreaded phone call from a collections agency. But sometimes one phone call turns into twenty, and even worse, an agent may be aggressive and threatening on the phone.

Despite the fact that collections agents are trying to collect a legitimate debt, more and more negative attention is being focused on unfair and aggressive policies that some agencies have been using.

Some of the more aggressive policies caught the eyes of James Caldwell, Louisiana attorney general and Washington attorney general Ron McKenna who have both vowed to make accounts receivable management firms and their owners clean up after their acts.

In fact, Caldwell has obtained injunctions on January 8th against two debt collection agencies that were not following the standards that have been set for obtaining debt.

On the same day McKenna stated that his office had just come to an agreement with a collection agency that agreed to comply with new restrictions that have been established.

Some of the new boundaries that these collection agencies must comply with include more effective communication. This means that any harassment, intimidation, threats, profanity, or attempts to embarrass the debtor are now out of the question.

With these new settlements, these collection agencies under close watch will no longer be able to intimidate debtors through threats such as failing to pay a debt will result in a suspension of the debtor’s driver’s license.

Finally, although these collection companies are able to lawfully report debts to credit reporting agencies, they are no longer allowed to threaten debtors with impairment of their credit rating.

Although collections agencies are justifiably trying to collect a legitimate debt, there are two issues to consider. People who owe money are just thatpeople, who deserve to be treated with respect and dignity. More importantly, if a debtor is terrified of an aggressive collections agent who calls them constantly they very well may just stop picking up the calls, leaving themselves in debt, and the collection agencies with nothing.

Mallory Megan works for a debt collection agency. She also writes articles on business, finance, consumer spending and collection agencies.