Precautions for Dealing with Debt Collectors

There are many scavenger debt collectors buying old debts and then sending out collection letters to anyone with a same or similar name, and then dinging your credit or forcing you to pay a debt that isn't yours, when it's crunch time like when you need to close your home loan. Rules for dealing with debt collectors, courtesy of radio consumer advocate Clark Howard:

1. If you receive a collection letter for a debt you do not owe or are disputing, always replay in writing via Certified Mail within the 30 days allotted. Otherwise they can ding your credit report. You tell them that the debt is not yours and to go buzz off. You also tell them you will sue them if they put that debt on your credit report.
2. If you make an agreement to pay a debt collector for a debt you do owe, ALWAYS get that agreement in writing before you pay them. Do not pay them anything unless you get it in writing. Do not even make a good faith payment until you have the written agreement in hand.
3. Never give a debt collector your checking account number - EVER! They'll cheat you in a second.
4. Do not give them a post dated check. Again, they'll cheat you.