Debt Collection Agency buys unpaid debts from companies, usually the unsecured debts that are uncollected. They then call the debtors regarding the unpaid debts, send collection letters, demand letters, and other forms and styles in order to collect. They will then add interest charges and other penalties if the account is still not paid, despite their collection efforts. If despite all these and the debtors will not pay they will threaten them with lawsuits if the debts are still not paid. On the other hand, on your side, it is best not to sign anything whether these are collection letters or demand letters. Your initials will do when you accept these things.
When collection agencies call you at work you may not answer them because you are on official duty and they cannot also call you at inconvenient times because this can already be considered harassment. It can also be best if you will ask them all details about the debt that they want to collect including details on interest and other charges and penalties. Through this, it may be possible that you can dispute the amounts that they put in there. You can probably also ask them to produce the original credit documents that you signed, in order to accurately ascertain the exact amount of your debt. What is best maybe is to pay directly to the company you had the debt, for no disputes on the amounts.
However, make it certain to them that you will settle your account if there are no discrepancies in the amounts they collect. Talk to them about a possible settlement agreement, to avoid lawsuits. This will happen if you will insist on not paying and they will be able to prove that the debt really is your accountability. What you will be doing is making sure that the collection agencies are not charging too much that adds up to your debt. Make them aware that you will pay only what is just and not too much charges.
These collection agencies actually will not pay the creditor companies the amounts of the debts because these debts are usually written off and these companies will be glad to recover portions of the debts only. However, the collection agencies will add many charges if you will not complain because this is where they will make a lot of money. It is therefore ideal to talk this over with the agencies for a settlement agreement, and on your part agree only to what you are capable of paying on a regular basis.
When you do this before a lawsuit is made you will break free from all the hassles of a legal settlement because you will not face legal proceedings or hire a lawyer to protect you. You will not also like your properties or salaries to be garnished in case a judgment is made. Therefore, the best thing should be to face these collection agencies squarely but also make it known that what you will pay will only be just. Make an arrangement with them regarding the mode of your payments.