ACA International Gives Advice to Consumers Facing Collections

MINNEAPOLIS, MN – Many organizations attempt to provide guidance for frustrated consumers who have been contacted by debt collection agencies. Unfortunately, quite often their suggestions are misguided and, in some cases, even damaging. While dodging calls and ceasing communication with collection professionals may seem like an appealing way to make financial problems disappear, in actuality, hanging up on collectors and requesting that they quit calling will likely cause even greater problems down the road.

?Consumers need to look at the big picture and realize that by avoiding their current obligations, they are seriously jeopardizing their future financial outlook,? said Gary Rippentrop, CEO for ACA International, The Association of Credit and Collection Professionals.

For instance, consumers who choose to avoid working with collection professionals increase the likelihood of long-term credit report damage. A consumer?s credit report contains detailed information regarding personal credit history and is reviewed by lenders to determine a consumer?s credit worthiness. The report includes a credit rating-when an individual is late with a payment or has ceased making required payments completely, the person?s credit rating drops. A poor credit rating can negatively affect the consumer?s ability to purchase a home, a car or even to acquire other credit cards.

Avoiding collectors only sinks consumers further into debt. And while many consumers consider bankruptcy the answer to financial troubles, they are often unaware of the long-term consequences that can occur. A bankruptcy filling-which stays on a credit report for an average of 10 years-can inflate insurance rates or imperil the consumer?s ability to find a favorable mortgage rate.

People from all walks of life face financial problems. These problems can stem from poor money management skills, job loss, medical expenses or other unforeseen circumstances. However, with assistance from a collection professional-plus some determination and self-discipline-consumers can get their financial lives back on track.

ACA International offers these tips for consumers working with collectors to successfully solve payment problems:

1. Keep Your Ears and Eyes Open: Take a deep breath and listen to what the collection professional has to say. In addition, carefully read any notices or letters you receive, because they contain important information about your rights.

2. Contact the Collection Agency: If you believe you do not owe a bill or have any questions about your debt, contact the agency in writing. If you do owe it, let the agency know when payment should be expected. Or, if you are unable to pay the bill in full, request that a reasonable payment schedule be established. This will allow the agency to review your specific case and respond to the issues you raise.

3. Work With the Collector: Professional collectors are thoroughly trained to work with each individual consumer to find the best solution to his or her payment problems. Being completely honest with the collector will help him or her help you to find a payment solution that is feasible for both parties.

ACA International, formerly known as the American Collectors Association Inc., is the association for credit and collection professionals. Founded in 1939, ACA International has approximately 5,300 members, including third-party collection agencies, attorneys, credit grantors and vendor affiliates. Headquartered in Minneapolis, ACA International serves members in the United States, Canada and 58 other countries worldwide. For more information visit our new Web site at www.acainternational.org.