Should I ignore the debt collector

Yes, it is essential to keep communicating, but you will see why writing is a much better approach. Verbal dialogue can sometimes seem a much quicker way to resolve a problem. However, when dealing with a debt collector or a creditor, there are legitimate reasons why communicating in writing is so important.

Let’s examine why.

Meet Faye...

Faye is struggling with debt. She doesn’t have any children or a partner. She’s renting a flat by herself in Greater Manchester. Her salary isn't enough to cover her living expenses, and she now finds herself trapped in a web of borrowing. The debt has ended up in the hands of a debt collector.

When Faye arrives home from her shift late in the afternoon, all she can think about is her debt. So she picks up the phone and calls the debt collector, hoping to reach an agreement to help her situation. The problem is that she is feeling anxious and isn’t thinking straight. The phone starts to ring, and someone answers, directing her call to the correct department.

Faye doesn’t realise it, but she's been put through to a trained call handler. The key outcome they are looking for is to arrange a payment or secure a plan that recovers the money as quickly as possible. To do this, they gather as much information as possible to maximise the agreed amount rather than what Faye can realistically afford.

It doesn’t occur to Faye to record the phone conversation; she just wants to get it over and done with. On the call, the Debt Collector agrees to a partial settlement, which will relieve some of Faye's financial pressure. Faye is delighted; however, there’s a problem.

Faye thought she had agreed to a partial settlement and made the payment thanks to a kind family member who helped her. The problem is she has no proof that a partial settlement has been agreed upon.
There was no phone recording and no written confirmation.

A few months later, another debt collector sends her a letter demanding payment for the remaining balance of the debt she thought she had paid off! Faye argues that she has already settled the debt as a partial settlement, as agreed with the previous debt collector. The debt collector asks for... you guessed it... proof. Faye doesn’t have this.

So, how would putting everything in writing have helped Faye?

Keeping everything in writing would have given Faye a documented trail of all her conversations with the debt collector. She would have something to refer to and know precisely what had been said and agreed to in her situation. More importantly, she would have had proof of the partial settlement agreement.

Writing would also have given Faye time to review what she wanted to say and read any responses thoroughly to understand what had been said. When speaking on the phone, Faye felt pressured to answer quickly, not giving herself enough time to think about the information she was sharing.

Faye thought she had agreed to settle her debt at a reduced amount, but instead, she paid a lump sum towards it. The rest of the debt has been handed over to another debt collector to pursue.

She intended to put the debt and the stressful situation behind her, but instead, she ended up in the same position, with the remaining balance still to pay.

Corresponding only in writing would have allowed Faye to feel more in control, giving her a stronger state of mind.

The Real Debt Guy is a qualified financial adviser and a UK debt expert. The information in this article is considered to be true and correct at the publication date.