Home> Credit Library

How debt collectors find you and tips to deal with it via the FDCPA

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. I am going to tell you what they do, how they operate and how to protect yourself. I for one, am not from the “school of thugs” where debtor prison still wins.

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 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! Do you realize how many debts are repaid every year AFTER they have expired? Millions!

You also have the right to report an abusive bill collector to the FTC. You can even file your complaint online. You can sue a debt collector. Many have and it's a great way to stop them flat and get money for damages.

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.

I know it may be a boring read, but I urge you to really put some time into reading the FDCPA because you will uncover a lot of protection. We have a ton of tools to help you deal with credit and collection issues here.

Debt Collection Links:

• Free legal forms regarding consumer protection rights

• What is the Fair Debt Collections Practices Act?

• Can a debt collector still contact me if I don't owe the money?

• What types of actions are prohibited?

• What is the debt collector required to tell me about the debt?

• What to do if you think a debt collector has violated the law

• I need to speak with an attorney about a case

FDCPA Fact sheet from the FTC

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.