 TITLE: What Is a Collection Agency? CONTENT: Tips for Dealing With Collection Agencies\n-----------------------------------------\nDealing with debt collectors is rarely fun, but it should be manageable—at least with a little strategizing on your part. Here are a few tips to get you started:\n*   **Learn your rights.** Study up on FDCPA rules and contact the Consumer Financial Protection Bureau if you feel the rules are being violated. Visit your state attorney general's website to find out what the applicable statute of limitations is. Your state sets rules on the time companies can take to collect outstanding debt, typically three to six years. If an agency is trying to collect an expired debt, you can send a cease and desist letter and stop collection activity. This also applies if you are approaching the statute of limitations. Important: If your debt's statute of limitations is expired or about to expire and you agree to start payments, you may reactivate the debt and reset your timeline.\n*   **Tackle collections head on.** Though it's no fun having to confront a collection agency, ignoring a call or notice will probably only make things worse. If a debt collector can't reach you but believes the debt is recoverable, they can seek a judgment in court that could result in your wages being garnished or assets seized.\n*   **Take control of the conversation.** Don't let a call from a collection agency catch you off guard—have an idea what you'll say when the phone rings. Feel free to answer the call, but don't have a lengthy conversation or agree to anything in this initial contact. Ask for a debt validation letter and set a time for a follow-up call. In the meantime, take the time to validate the debt, confirm the identity of the collection agency and decide how you'd like to proceed.\n*   **Decide how you will pay.** If you can pay the debt in question immediately, this is probably your best option. You'll end the collection process and can move on with the business of healing your credit. The collection agency may be willing to negotiate a payment plan or partial payment of your debt, which may or may not impact your credit going forward. Finally, if you are in the process of bankruptcy and\/or cannot pay, look into whether you may be \"judgment-proof,\" with no assets to garnish. In this case, you may be able to halt collection activity. END