Dealing With Debt Collectors

Despite making every effort to keep your financial boat afloat, sometimes problem debts can’t be salvaged and you may receive phone calls from debt collectors. If you can’t pay the debt, you’ll have to live with the calls, but there are laws that protect your rights and govern the actions of collection agencies.

The Fair Debt Collection Practices Act (FDCPA)

Since 1978 the FDCPA has protected consumers from abusive practices of debt collectors. Not only does the FDCPA address consumer rights, but it also enacts guidelines defining what collectors may, and may not, do when collecting a debt.

Dealing with debt collectors – your rights

If you’ve ever had a debt that went to collection you’re probably well aware of the abusive tactics some collectors use to get you to pay. But you don’t have to accept this kind of behavior. Let’s take at look at a few of the things debt collectors are not allowed to do. They may not:

• Call you before 8 a.m. or after 9 p.m.
• Call you at work – if you request that they stop
• Use derogatory or obscene language
• Speak to anyone but you, your spouse, or your attorney about the debt
• Threaten or goad you
• Claim to be someone else (such as an attorney, law enforcement officer, etc.)
• Harass you by calling more than once per day

Calls from collection agencies should be professional and courteous – just like any other business call. If a collector violates FDCPA guidelines and you take legal action, they may face severe penalties including owing you statutory damages, actual damages, court costs, and attorney’s fees. If you are receiving calls from a collection agency here are a few tips:

Check the laws in your state

State laws vary on what actions debt collectors may take (such as seizing property, garnishing your wages, bringing lawsuits). Also, many states put a time limit on how long a collector may try to collect a debt. Call the Attorney General in your state to check on your rights.

Keep a record of every call and what was said

If you ever have to sue a collector, it’s important to keep as much information as possible. Some states allow you to record telephone conversations. If that’s something you want to do, be sure to tell the debt collector that you are recording the call.

Pay debt collectors with a check

If you send money to a collector, a check serves as an excellent record of the payment. Never give a collector your checking account number or allow them to deduct money from your bank account.

File a complaint

If the collector is violating FDCPA law, you can, and should, file a formal complaint. You may contact the Federal Trade Commission, your state’s consumer protection agency, or an attorney if you plan to file a lawsuit.