What Not to Do When a Debt Collector Calls?
There are plenty of things you should do when a debt collector calls; but it is important to realize the things you shouldn't do. I will talk about three key things that can make a difference in the outcome of your financial standing in regards to debt collection.
Never Provide Your Personal Financial Information.Do not provide debt collectors with your financial information, such as a bank account number (unless you are making a payment), your social security number, or discuss the value of any property (whether real or personal) that you own. Your financial information may be used by the debt collector or creditor if the creditor obtains a judgment against you. Provide basic information about your income or financial troubles.
Do Not Make a Good Faith Payment.You may voluntarily want to make a very small payment to a debt collector to demonstrate a "good faith" effort to resolve the debt without a settlement agreement or to prevent litigation or an adverse credit rating. Sometimes the debt collector even suggests you make a nominal good faith payment. Don ' t do it. That payment functions to extend the statute of limitations. Creditors are required to file lawsuits against you for the recovery of an unpaid debt during a specific period of time or they lose the right to sue you forever. In Delaware, the statute of limitations under a contract claim is 3 years; a promissory note claim is 6 years; and a contract signed under seal claim is 20 years. Every payment made to a debt collector, restarts the statute of limitations. Unless you have a settlement agreement to resolve the overall debt, do not make a good faith payment.
Making Promises to Pay or Admitting the Debt is Valid!Any promise to pay or admission of the debt also restarts the statute of limitations clock. Avoid statements like, "I owe XX," "I will pay you as soon as I can," or " I can start paying you next month." All of these promises to pay or admissions that the debt is valid restarts the statute of limitations clock.