The most important thing to know when dealing with collection agencies is that you have good cause to suspect whatever they tell you.
Many collection agency workers have been known to lie, stretch the truth, and basically say whatever it takes to get you to right them a check. Therefore, it is wise to know your legal rights before getting on the phone with a bill collector.
It is possible to make a collection agency stop calling you by sending them a cease and desist letter, however by doing so without taking any other actions, you might well prompt them to file a lawsuit to attempt to collect the debt.
Instead, a wiser plan of action might be to decide on one of the debt relief strategies outlined on this site and begin to implement that strategy immediately.
A debt settlement firm or credit counseling agency could help to quickly stop collection agencies from calling you. In addition, by implementing your own settlement negotiation plan, you could stop the collection agency calls and start eliminating the debt altogether.
In the mean time, it would be wise to educate yourself on your legal rights regarding collection agencies. So continue reading and learn all about your rights.
Debt Collection Agencies
When it comes to debt collection, you have many rights you may not know about, and it is vital that you exercise those rights in order to reach a fair and equitable resolution to your situation.
The following information has been validated by the Federal Trade Commission. I advise you print it out and use it as a guide if you are currently receiving correspondence from collection agencies.
Debt collection continues to be a principal subject of many consumer complaints received by federal and state consumer protection agencies.
The Fair Debt Collection Practices Act (FDCPA), which was passed in 1977, is one of several credit laws enforced by the Commission. Specifically, the FDCPA is intended to prevent abusive, deceptive, and unfair debt collection practices in the marketplace.
The Fair Debt Collection Practices Act applies to those who collect debts owed to creditors for personal, family and household debts?these include car loans, mortgages, charge accounts and money owed for medical bills. A debt collector is someone hired to collect money you owe.
Within five days after a debt collector first contacts you, the collector must send you a notice that tells you the name of the creditor, how much you owe, and what action to take if you believe you don't owe the money.
If you owe the money or part of it, contact the creditor to arrange for payment.
If you believe you don't owe the money, contact the creditor in writing and send a copy to the collection agency with a letter telling them not to contact you.
A debt collector may not:
- Contact you at unreasonable times, for example, before 8 a.m. or after 9 p.m., unless you agree;
- Contact you at work if you tell the debt collector your employer disapproves;
- Contact you after you write a letter telling them to stop, except to notify you if the collector or creditor plans to take a specific action;
- Contact your friends, relatives, employer or others, except to find out where you live and work;
- Harass you through threats to harm you, profane language or repeated telephone calls;
- Make any false statement, or claim that you will be arrested;
- Threaten to have money deducted from your paycheck or to sue you, unless the collection agency or creditor intends to do so and it is legal.
To file a complaint, contact your state or local consumer protection agency and the Federal Trade Commission.
Again, the best way to contend with calls from a collection agency is to immediately begin to implement one of the DEBT REDUCTION STRATEGIES outlined on this site .