Your Money Rights - Debt Collection Rights

Ahh, debt collectors.  They have to rank just below ambulance-chasing lawyers.  I've had to deal with a few in my day and to the person, they are mean, intimidating, rude, pesky, did I mention rude, and just plain 'ol nasty.  That being said, they do perform a service in that if you owe a debt and do not pay, they are the ones charged with trying to get you to pay.

Being hounded by these vultures is bad enough, but when they start calling your family, your friends and even your neighbors to pressure you into paying, it gets even worse (this is illegal, but many of them do it all the time). 

Fear not!  There are several protections that the federal Fair Debt Collections Practices Act provides you that can put a stop to the harassing calls and emails and gives you rights when you are contacted by a debt collector.

The FDCPA applies to all personal, family, and household debt like your car payment, credit cards, loans, medical and insurance payments, bounced checks and the like.  The FDCPA not only applies to debt collectors, but also attorneys that try to collect a debt for their clients.  Here's the short list of what the FDCPA covers:

•    The collector cannot call you at an inconvenient time or place unless you give them permission (usually before 8:00am or after 9:00 pm)
•    They cannot call you at work if they know your employer does not want you contacted there.  They cannot contact your employer about your debt
•    They cannot contact you by post card or use an envelope that makes it clear they are collecting a debt.
•    They cannot contact you once you have requested not to be contacted again.
•    They cannot call you repeatedly in a short period of time.
•    They cannot threaten to ruin your reputation or harm you in any way.

Within 5 days of making contact with you the debt collector MUST provide you with written information detailing exactly  how much money you owe and to whom you owe it.  You must also be notified that you have the right to dispute the debt.

Okay, let's assume that you have been contacted by a debt collector.  How do you respond to them?  The FDCPA affords you many options for responding to a debt collector.  The choice you make all depends on you exact financial situation.  Depending on how much you owe, if you owe a debt at all, and how much money you have available to use you can:

•    Pay the debt if you agree that you owe it
•    Work out a debt payment plan
•    Settle the debt for less than you owe
•    Send the collector a letter within 30 days of them contacting you stating that you do not owe the debt.  Once they receive this type of letter they cannot contact you again except to send proof that you owe it.
•    Ask them for written verification that you do owe the debt.
•    Write them a letter indicating that you do not wish to be contacted again.  They must comply with your request, but they can send you a notice that you won’t be contacted again. (This does not mean that the debt goes away).
•    Dispute the debt.  If you don't think that you owe the debt send the collector a dispute letter.  You need to send it within 30 days of being contacted and they must suspend all collection efforts while they confirm the validity of the debt.
•    You can file for bankruptcy

As I said above, these debts do not go away. You can be sued for them by the debt collector or the first creditor so it's best to take care of these issues promptly.  No matter what you decide, you need to address the debts without emotion.  If the debt collectors get you frazzled, you are more likely to make an error in judgment.  Take the time to figure out the best way to handle the debts, reject the debts, or otherwise get the debt taken care of.

I am yours in success,
Randall

Comments

[Deborah King]

Where were you about 12 years ago? I was at my wits end and with no hope in sight. If I knew that I had rights I think it would have made things a lot easier for my family and me. We were hounded day and night by creditors. They were so relentless that I thought I was going to have a stroke at age 32. I am not a bad person and I pay my bills, but there was a shift in my cirrcumstances and I fell behind in my bills. I tried to consolidate no one would help me. I was told I had to much debt. I like so many Americans was forced to file for bankruptcy. Randall I want to thank you for caring and helping people know there is hope and someone who cares out there. Someone who has acctually been there! Hats off to you. Sincerely, Deborah

[Randall]

Deborah,

Thank you for the comments and I do know how hard it is. It is my mission to help others achieve financial success without the pain and suffering I know so well.

Thank you for taking the time to write your note, it really means a lot.
Rnadall