00:00Oh no! Your phone rings and they say you need to pay an old bill you never got to.
00:06Don't panic. It happens to the best of us. This is how to deal with debt collectors.
00:11Coinage. Life. Well spent. Presented by GEICO. Here's a few things you should know. Debt
00:19collectors are legally obligated to follow strict rules and usually want to work with you. They may
00:24not be your original creditor. A business might hire a collections agency to collect on delinquent
00:29accounts. This means anything unpaid for over 90 days. Federal law prohibits collectors from
00:35employing abusive practices. They can't call too early or late in the day, give false info on what
00:41you owe or threaten you in any way. You should receive a written notice of your debt within
00:45five days of their initial contact. Check out the Federal Trade Commission's site for a list
00:50of protections and report any violations immediately. Now, what to say? Keep the convo short and
00:56business-like. Never give out financial info over the phone like your bank account number.
01:01If you're unsure about how much you owe, ask for written proof. You can negotiate with the
01:06collector. Tell them what you can afford to pay and ask if they can settle for that amount or even
01:10institute a payment plan. Get confirmation in writing for whatever deal you make. Take a deep
01:15breath and follow this advice. Deck collectors won't be so scary anymore.
01:20Coinage. Life well spent. Presented by GEICO.
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