Follow These Steps So You Can Take Control

1. Prepare a complete script, and keep a copy next to each telephone in the house. This script will start off as follows: "Before you go any further, I need to tell you that I'm extremely willing to work with you. However, the moment you become threatening, aggressive, rude, or disrespectful, I will hang up and will not take another call from you. Can you agree to this?" If they start to argue ("Sir, that's not how we work..."), hear them out and re-read that phrase in a calm and well-modulated voice until they agree to your ground rules. Then continue: "Now, before we start, I need to get your name, your company's name, and a telephone number." Many collectors will get flustered by your calmness and direct approach. They will say " I will mark you down as being uncooperative" or something like that. Tell them you are not being uncooperative, you are asking for their coooperation. Write down this information, along with the time and date of this call.
2. They will usually tell you that they are going to record the conversation "for quality assurance purposes." If they do, ask if you may also tape the conversation; do so.
3. Once they've agreed to your terms, ask for your balance at this time and jot it down.
4. Have an amount already affixed in your head beforehand that you know you can, without fail, send them every month or week, no matter how small that amount might be. They'll most likely push for more. Stand firm, and explain that this is the amount of money you have, and you can't possibly pay more than that. At all times, maintain that you want very much to resolve this debt, but, at the moment, this amount is all you can do. Explain that, if they accept this offer, you will agree to re-converse with them in six months to see if you'll be able to increase the amount at that time. Do not agree to have the money ripped from your bank account by EFT.
5. Be sure that they agree to stop trying to collect interest on the debt. Tell them to stop calling you unless it is to return your call.
6. When they agree to your payment, ask them to sign and fax you a note with your balance and the agreed-upon terms on it that you will then sign and fax back.
7. Be sure to read the note over carefully before signing it, as this will be a legally [and certainly ethically] binding contract.

Dealing With Collection Agent Tips

• You must keep a calm, reasonable and well-modulated tone of voice. Any yelling, name-calling or other verbal tactics will erode the image you're working to project.
• If they speak to you in any way that you find objectionable, give them one warning, as mentioned in your opening statement. The second time, ask to speak to their supervisor. When you're connected, start again from step one.
• Write down everything--the date and time of the call, data on the rep calling you, what they want, what you're offering, etc.
• As you continue to talk with different creditors, you'll pick up new tips. Be sure to write them down for the next time.
• It may be a good negotiating strategy to reduce your monthly offer by 15% to 20%. It will give you negotiating room and many collectors believe you have done this anyway.
• If your finances are really starting to hit the skids, go to the Yellow Pages and look for an organization that helps with credit counseling. This agency, if it is a good one, will not charge you for their services.
• Despite recent changes in the law, bankruptcy is still available and is an alternative under the correct circumstances. See a bankruptcy attorney. If you do not know who to call, call your local bar association or law school and ask for a referral or for the head of their bankruptcy committee or department.
• You must remember that, legally, you do not have to put up with collection agencies. All you need to do is to write them a certified, return receipt requested letter with a copy sent to your attorney general's office, demanding that the collection agency cease and desist all communication with you. Now, the wording here is crucial, you must write the words "cease and desist" in your letter. If they contact you again, you can then report them to the attorney general's office, because you sent a copy of your letter there. Then, work out payments with your creditors, not the collection agency.

Keep Your Eye on Goal

• Remember, your goal is to take, and keep, control of the conversation so that you can both get what you want. By losing your temper, sounding panicked, or whining, you are giving control of the phone call back to them.