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How to Deal with Bad Creditors

The old story goes that some people just dont pay their bills. They try to get something for free, or they extend their finances too far, and they end up dragging businesses and other creditors down with them.

This view of credit is so strong that many people dont realize that often, its the creditor who is acting in bad faith, and it’s the creditor who needs to be brought in line.

There are plenty of reasons for why creditors act poorly. They may be under some financial strain themselves and so may fudge their numbers and place the blame on others to avoid repercussions to themselves. They may also simply do this out of practice without any particular strain. Others may just get tired haggling over a debt and try to force the hand of the debtor to pay what the creditor wants.

In the end, it doesnt matter what the creditors motivation is. What matters is that it can ruin the debtors credit, which can make their life incredibly hard.

It can make it impossible to get loans, raise mortgage payments, or find a place to rent. These are serious risks, and particularly awful when the person hasnt actually done anything wrong.

So, what should you do if you are confronted by bad faith creditors who are placing the blame on you? Try these tactics to get your credit returned to the level it should always have been at:

Keep track of everything

This is crucial. If your creditor is mistreating you and trying to ruin your credit or manipulate your debts, you need to keep as much evidence as possible. Keep track of all paperwork that comes your way and keep it organized. Keep track of every payment you make and whether it meets minimum payment expectations. Keep track of all your communications with the business.

That may also include recording calls with the business. Simply tell them upfront (as they tell you when you wait on hold) that youre recording the call for your own records.

Keep in contact with the creditor and demand explanations

If you see that there are some irregularities in your debt or you are noticing problems with your credit, always contact the creditor and demand an explanation. Do so in writing and by phone. Ask for written explanations of everything and again, record phone calls. This will help establish what has been happening.

Explain what you are doing to the creditor

Tell your creditor you are going to contact other professionals and experts to review how they have handled your credit and debts. This may be enough to resolve the problem on its own without requiring the last and most drastic step.

Contact a lawyer

If you are unable to resolve the dispute on your own, it is time to contact a lawyer who can help you. Go with a lawyer of good repute (in my area of Alabama, for instance, Greenway Law, LLC is spoken highly of on this account) that can guide you through the necessary steps and can take on the creditor to return your credit to the level it should be at.

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