Your guide to dealing with unscrupulous debt collectors.

What we hope to attain here is teaching you that you do not have to be intimidated by debt collectors. This page is not for everyone and should not influence your opinion if your experiences have been positive. This page is for those specifically being harassed by debt collectors beyond the scope of the law. You have a right to be treated with dignity and not be harassed for a debt.

While there may be very professional collection agencies and debt collectors, there are those who do not follow the guise of the law and those are the ones we are talking about. If your experience with a debt collector has been a positive one, good for you, you are one of the lucky ones. For the majority their experiences have led them here seeking hope and away out of the harassment. Yes, if you owe a debt, they have the right to collect that debt but at what costs? Many have suffered tremendous health and mental problems after dealing with the likes of some debt collectors. What we want you to know are your rights! What rights you have specifically dealing with debt collectors.

In my years of being a debt collector, I was constantly amazed how some of my co-workers treated people. They would place bets amongst each other of who could collect the most at whatever cost and they would giggle while they were harassing an unemployed mother of three. Telling her such things like "You know you incurred this debt with the intent to commit fraud right" because your not paying it! In reality, that had nothing to do with why the debt went unpaid but getting that across to the debt collector was impossible. Their job was to collect not counsel a person.

It was not until I transferred over into the credit union field that I began to see real respect for the debtor. I was fortunate enough to work with very caring professionals who looked at everyone as a member, not a debtor. Before I got into the credit union field, I worked and trained at numerous collection agencies, attended the seminars and meetings and do you know what the topic always was? What method a collector used to trick a person into paying!

The collectors would stand in the hallway of the seminar locations and just trade stories back and forth about how they took a persons phone number home with them and continually called the debtor through the night! I was disgusted and felt guilty for being a part of it.

Now, lets make one thing clear. This was not internal debt collectors at banks or loan companies but third party debt collectors working for collection agencies. It's their job to get results. A collector at a bank or loan company works for salary and does not live to collect debts. Their job descriptions are broad and involve customer service. A debt collector at a collection agency is hired for that specific job. Their pay is based on quota and they make commissions for what they collect. If you don't hit your commissions then you are not effective.

My experiences were not limited. I faced this at every single collection agency I worked for or consulted at. That is when I began to see a real problem. To this date, I deal with collectors on a daily basis and even I still face those who are unwilling to listen and have stereo-typed every person as a debtor. Another problem is the industry itself.

There is a lot of fraud and numerous debts that people simply do not pay when they could. The debt collector also deals with these types daily and develops tough skin. My solution to that? Know the difference! I can spot a real dead beat from the second I have contact with them. They have absolutely no intent to pay their debts and bounce checks all over town. Nonetheless, the law is the law and last time I checked, we no longer have debtors prison.

The problem I have with these types of debt collectors are their methods in general. Don't promise to put a positive entry on a consumers credit report only to have no intention of following through. Don't promise to settle a debt for less only to attempt to collect the full balance after you have convinced the debtor otherwise.

It doesn't matter what your field is, bad business is bad business. If your going to attempt to settle a debt or pay an old bill, there is nothing wrong with you trying to get the best deal or reflect a more positive rating in exchange. Especially with circumstances such as debts being sent to collections without you ever receiving a bill. Is it really fair to damage a person's credit for 7 years when the original debt was never known to them? This is common with doctor and hospital bills.

They are sent to collections and land on your credit report without you ever even being billed. For those circumstances and people who have been or are being severely pursued or harassed, there is hope.

First off lets face the facts that the debt collector is prepared when he calls you! Are you? Probably not. Once you learn the basics of dealing with debt collectors you will make your life much easier. Now for those of you who repeatedly don't pay your bills and constantly incur new ones, Get Help!

You are making your own problems, and we really can't help you. We don't recommend that anyone take advantage of the system and many do. This advice is for people who are abused everyday by debt collectors, collection agency staff and the like.

Now, onto the good stuff.

Just because a debt collector says you owe a debt means nothing! Understanding that first and foremost is important.

So many people are fearful of the conflict of a debt collector that they simply pay to get rid of them without even verifying if the debt is valid. Under that great little law, The Fair Debt Collections Practices Act are all the guises for debt collectors to follow. One of your many rights is that you have the right to dispute the validity of a debt.

This can mean anything from interest being charged, fees and penalties and original balance. If a debt has been sold and re-sold how are you to be sure what is due? You ask! Simple as that. The first time you get a notice from a debt collector or a phone call, advice them that you want the debt validated. You have an absolute right to do so. If you ever looked, you will even see on the actual notice from the collection agency, the following mini Miranda:

This is an attempt to collect a debt. Any information will be used for that purpose. If you dispute the validity of this debt you have 30 days to notify us of such. If you do not, we can assume the debt valid.

This little quote is telling you that you have an absolute right to question the debt. In doing so you should ask the collection agency to send you copies of the contract, original documents from the original creditor, last payments posted and all fees and penalties added on. Guess what? If they can't then they have failed to verify the debts accuracy and you may not owe the debt or have to deal with it being reported to your credit. If they bought a valid debt they should have valid documentation from the source who sold it. Period!

Additional rights you have are the rights to refuse their correspondence. You don't have to be called at work, home and have your mailbox flooded with dunning notices. If a debt collector is bothering you simply send them a certified letter called a cease and desist. In the letter tell them you do not wish to be contacted any further by mail or phone. They must abide by your request. If they do not, you can hold them liable under the FDCPA. Any third party debt collector or collection attorney is under the guise of the FDCPA. Only an employee of the original creditor whose occupation within that company is not to collect debts is exempt.

Once you put them on such notice then they can only contact you one last time to tell you that they are planning to sue you. If this happens you have to use common sense and weigh the facts before panicking. IS the debt large enough to consider suit?

Well, if it is under 500.00, probably not. Collectors love to threaten this to get payment but that too is a violation. You can not threaten to sue a person if you had no intention of following through. If the debt is large enough to sue you then make sure you look at the statute of limitations for the debt. If the SOL has expired then legally you are not obligated to pay that debt. If they did sue you, all you would have to do is show up and tell the presiding Judge that the SOL is expired. Another factor to consider is where the creditor is located and if they have offices near you.

Do you think a debt collector is going to fly to your state to sue you? Probably not. They may have offices near you and that needs to be considered or they may sell the debt to a collection agency near you. again, all this is neither here nor there if they do nothing.

Another area that many don't think about is your right to negotiate the debt. A debt collector wants to be paid. They are paid and rated by how they collect. If they are having a very slow month and you offer to settle an otherwise uncollectable debt, you may get your way! You have to consider timing. Debt collectors are more incline to agree to settle towards the end of the month.

If you get an agreement from a debt collector-GET it in WRITING! We cannot stress this enough. Never ever take their word for it, Get all the facts on paper before you agree to anything. If a debt collector tells you they will rate the debt as settled rather then paid charge off and they will accept 50% as full satisfaction then why would they have a problem putting that in writing? Because they have no intention of following through! Once you pay a debt collector there is no negotiation to do. You have given them exactly what they wanted.

The most important things to remember is:

You cannot be harassed

They cannot tell third parties about the debt.

They cannot call you after 9pm or before 8am

They cannot threaten you or use scare tactics

They cannot legally sue you for an expired debt

They cannot contact you once you put them on notice not to.

They must be able to verify the validity of the debt

FAIR DEBT COLLECTION PRACTICES

People fail to meet their credit obligations for a variety of reasons. These range from over-extension of finances to unemployment and illness. Whatever the reason, every person is protected by the federal Fair Debt Collection Practices Act. Congress passed this act to protect consumers from harassment by debt collectors. 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.

Limitations on Contacting the Consumer

A debt collector may only contact a person between the hours of 8 a.m. and 9 p.m. Debt collectors may not contact the consumer at his job if the debt collector is aware that the employer prohibits personal calls.

A person may notify a debt collector in writing if he or she does not want any further contact with the collector. Once this notice has been received, the debt collector must stop all communications, except to notify the person that a specific action will be taken.

Can Debt Collectors Tell Someone Else About Your Debt?

No! A debt collector can discuss your debt only with your attorney, a credit bureau, the creditor, and the creditor's lawyer. However, the debt collector can contact other people to find out where the debtor lives or works.

What Debt Collection Practices are Forbidden?

Debt collectors may not harass, intimidate, threaten, or embarrass you.

Debt collectors may not make false or misleading statements, such as falsely associating themselves with a government office or credit bureau. They may not use misleading or false threats of imprisonment or criminal charges.

What to do if a Debt Collector Violates the Act

Keep detailed records of any communication you have with the debt collector. Include time, date, and the name of the person with whom you spoke.

Keep a copy of all written correspondence between you and the debt collector.

Report the company in writing. Send the report to:

Federal Trade Commission Correspondence Branch
600 Pennsylvania Ave.
NW Washington, D.C. 20580