Quite possibly you owe a debt, yep, you’re
a debtor and you’re being hounded nonstop. Just because you
owe money doesn't mean you have to sacrifice your sanity or privacy.
There are ways to protect your
privacy if trying to work with the creditor has gotten you no
where. If you owe a valid debt, you should
pay it, but for millions of American's they find the debt
collection process a total nightmare. No one cares if you are
out of work, overburdened with debt, or are disabled. They just
want the money and sometimes at your mental and physical well-being.
Creditors don't usually
track debtors down. Their in-house collection procedures go about
as far as a few series of letters and phone calls followed up by
a few threats to turn the account over to a collection agency. But
what do you do if a collector is calling you at work, sending you
mail, calling your neighbors, ignoring your rights, hounding your
facebook and generally making your life hell? You hide! I know,
sounds like I am advocating not paying your debts. Quite The opposite.
I've already mentioned that you should pay your debts if you owe
them, but if you are unable and can't take the prying anymore, there
is hope. You can fight a debt collector with a few tools...
First off, know your
rights. The FDCPA makes it
illegal for a debt collector to intimidate or harass you. We have
sample letters that
can help you stop a debt collector from further contact. Military
personal may have additional rights.
If you owe the debt and
want to pay it, you can still ask the debt collector not to contact
you at your job. You can also call the original creditor and ask
if they'll work with you rather than making you deal with a collection
agency. If that's not possible then make sure you get everything
in writing that you do with the debt collector and that includes
any credit report issues and payment arrangements. NEVER trust what
you are told by phone. If the debt collector is serious about working
with you, then they will have no problem putting the agreement in
writing. It preserves your rights.
Your goal is to get the
bill collector off your back and that can be done through cease
and desist letters or through written payment arrangements.
Remember, the Fair Debt Collections
Practices Act provides us with a lot of protection. Additionally
make sure the debt is valid. Debts DO expire so if you are being
hounded on a debt that has passed the statute
of limitations to collect, then legally you do not have to pay
it and you can stop the bill collector dead in his tracks.
You also have the right
to report an abusive bill collector to the FTC
or your State Attorneys General.
You can file your complaint online. You can also sue
a debt collector. Many have and it's a great way to stop them
flat and get money for damages if your rights have been violated.
Always keep in mind that a debt collector cannot
tell others about your debt. That is third party disclosure and
it's illegal. The debt is between you and the collector and that's
it. Be sure you check your records if you decide to pay to be sure
the balance is accurate. If you question it, ask the collector to
provide you with proof of the balance.
Here's a script
you can use when a debt collector calls you.
Fair Debt Collection
If you use credit cards, owe money on a personal loan, or are paying
on a home mortgage, you are a "debtor." If you fall behind
in repaying your creditors, or an error is made on your accounts,
you may be contacted by a "debt collector." You should
know that in either situation, the Fair
Debt Collection Practices Act requires that debt collectors
treat you fairly and prohibits certain methods of debt collection.
Of course, the law does not erase any legitimate debt you owe.
What debts are covered?
Personal, family, and household debts are covered under the Act.
This includes money owed for the purchase of an automobile, for
medical care, or for charge accounts.
Who is a debt collector?
A debt collector is any person who regularly collects debts owed
to others. This includes attorneys who collect debts on a regular
basis.
How may a debt collector contact you?
A collector may contact you in person, by mail, telephone, telegram,
or fax. However, a debt collector may not contact you at
inconvenient times or places, such as before 8 a.m. or after 9 p.m.,
unless you agree. A debt collector also may not contact you at work
if the collector knows that your employer disapproves of such contacts.
Can you stop a debt collector from contacting
you?
You can stop a debt collector from contacting you by writing
a letter (known as a cease and desist) to the collector telling
them to stop. Once the collector receives your letter, they may
not contact you again except to say there will be no further contact
or to notify you that the debt collector or the creditor intends
to take some specific action. Please note, however, that sending
such a letter to a collector does not make the debt go away
if you actually owe it. You could still be sued by the debt collector
or your original creditor. (We recommend that you submit validation
of debt upon notice of a debt from the debt collector)
May a debt collector contact anyone else
about your debt?
If you have an attorney, the debt collector must contact the attorney,
rather than you. If you do not have an attorney, a collector may
contact other people, but only to find out where you live, what
your phone number is, and where you work. Collectors usually are
prohibited from contacting such third parties more than once. In
most cases, the collector may not tell anyone other than you and
your attorney that you owe money.
What must the debt collector tell you about
the debt?
Within five days after you are first contacted, the collector must
send you a written notice telling you the amount of money
you owe; the name of the creditor to whom you owe the money; and
what action to take if you believe you do not owe the money.
May a debt collector continue to contact
you if you believe you do not owe money?
A collector may not contact you if, within 30 days after you receive
the written notice, you send the collection agency a
letter stating you do not owe money. However, a collector can
renew collection activities if you are sent proof of the debt, such
as a copy of a bill for the amount owed.
What types of debt collection practices are
prohibited?
Harassment. Debt collectors may not harass, oppress, or abuse you
or any third parties they contact. For example, debt collectors
may not:
use threats of violence or harm;
publish a list of consumers who refuse to pay their debts (except
to a credit bureau);
use obscene or profane language; or repeatedly use the telephone
to annoy someone.
Debt collectors may not use any false or
misleading statements when collecting a debt. For example, debt
collectors may not:
falsely imply that they are attorneys or government
representatives;
falsely imply that you have committed a crime;
falsely represent that they operate or work for a credit bureau;
misrepresent the amount of your debt;
indicate that papers being sent to you are legal forms when they
are not; or
indicate that papers being sent to you are not legal forms when
they are.
Debt collectors also may not state that:
you will be arrested if you do not pay your debt;
they will seize, garnish, attach, or sell your property or wages,
unless the collection agency or creditor intends to do so, and it
is legal to do so; or
actions, such as a lawsuit, will be taken against you, when such
action legally may not be taken, or when they do not intend to take
such action.
Debt collectors may not:
give false credit information about you to anyone, including a credit
bureau;
send you anything that looks like an official document from a court
or government agency when it is not; or
use a false name.
Unfair practices. Debt collectors may not
engage in unfair practices when they try to collect a debt. For
example, collectors may not:
collect any amount greater than your debt, unless
your state law permits such a charge;
deposit a postdated check prematurely;
use deception to make you accept collect calls or pay for telegrams;
take or threaten to take your property unless this can be done legally;
or
contact you by postcard.
What control do you have over payment of
debts?
If you owe more than one debt, any payment you make must be applied
to the debt you indicate. A debt collector may not apply a payment
to any debt you believe you do not owe.
What can you do if you believe a debt collector
violated the law?
You have the right to sue
a collector in a state or federal court within one year from
the date the law was violated. If you win, you may recover money
for the damages you suffered plus an additional amount up to $1,000.
Court costs and attorney' s fees also can be recovered. A group
of people also may sue a debt collector and recover money for damages
up to $500,000, or one percent of the collector' s net worth, whichever
is less.
Where can you report a debt collector for
an alleged violation?
Report any problems you have with a debt collector to your state
Attorney General's office and the Federal
Trade Commission. Many states have their own debt
collection laws, and your Attorney General' s office can help
you determine your rights.
