As the economy tightens, more and more people are being placed in a financial squeeze. Because of economics, many have either fallen behind on their bills or just can’t make the payments at all. When that happens, it’s just a matter of time before bill collectors start calling. There are many bill collection agencies out there. Some of them are very professional but there are others that call and make threats and harass people. For those companies, there are laws they are required to follow. For the consumer, knowledge is power when it comes to defending yourself.

1. Open a file and write down the names and numbers of the people who contact you. Keep copies of every letter that you send and every letter that you receive. Use certified mail and return receipt when sending documents to a collection agency.

2. If you receive a call from a collection agency, ask for proof of the debt. Ask for a copy of a real document that shows that you applied for the debt, e.g., credit card application, medical forms, etc.

3. Depending on the age of the debt and where you live, the debt may no longer be collectible. There are some debts that have statute of limitations, which can range from three to 15 years. Make sure you find out when you debt expires because once you pay even the smallest portion of it or start a payment plan, the clock starts ticking all over again. Contact your state consumer protection division to determine if you debt has exceeded the statue of limitations

4. Debt collectors have every legal right to contact you in person, phone, fax, or mail. However they may not contact you at inconvenient times or places. Unless you agree, a debt collector may only call between 8 AM and 9 PM.

5. Debt collectors cannot use threats of violence or harm. They cannot arrest you or even threaten to arrest you since they are not law enforcement officials. They cannot use use obscene language in order to collect a debt.

6. If you want the debt collector to stop all contact with you, you must write a letter telling them to stop. Although you are still responsible for the debt, collectors can no longer contact you otherwise they are breaking the law

7. If you can negotiate a repayment plan, make sure you get it in writing. As a matter of good practice, get everything in writing when dealing with a collection agency. It will protect you if there are problems down the road.

8. Finally, if you need to, hire an attorney to protect you. Make sure the attorney is a member of the National Association of Consumer Advocates and is an expert in the Fair Debt Collection Practices Act. If you take this step, then the collection agency must go through the attorney rather than contact you directly.

If you are in debt, you are still responsible for the debt. These tips just make it a little easier to deal with collection agencies.