Debt Collectors
Harassment by Debt Collectors
Debt collectors, are not unknown for using underhand tactics when going about the grizzly business of debt collection. Some of these tactics can include; visiting you at work, towing your car in the middle of the night, taking your car from outside your place of work, calling neighbors and faking their identity in order to gain access to you. What makes matters worse is they are often obnoxious, condescending and impolite when you do talk to them.
Debt collection agencies commonly use the telephone to mount pressure on the debtor and these calls usually occur at the most inopportune moment. Debt collectors have been known to cause embarrassment by ringing debtors at work or making home calls throughout the day or even late at night. More....
Are Debt Collectors Allowed to Contact Me if Bankrupt?
Federal law states that if you have filed bankruptcy it is illegal for a creditor or collection company to contact you. If your case is still open, 11 U.S.C. Section 362 prohibits any form of contact without the permission of the Bankruptcy Court. If your bankruptcy has been discharged neither creditors nor collection companies can contact you unless they have received special permission from the Bankruptcy Court. Note, however, that a creditor can call, write or visit you if their debt is exempt from the discharge.
If the collectors continue to contact you this amounts to harassment and you can send a letter requesting they cease communication with you under the terms of the Fair Credit Collection Practices Act, 15 U.S.C.S. Section 1692.
Always send your letter by certified mail so you can prove you sent a letter and most importantly that they received it. On receipt of your letter the collection agency or the creditor is likely to call off the hounds and cease all further correspondence.
NB: Writing a letter to a consumer collection agency does NOT make your debt go away if you actually owe it. Your original creditor can still sue you.
If a creditor or repossession agent continues to make telephone calls demanding money you should refer them to your legal rights. The Fair Credit Collection Practices Act, as mentioned above, also forbids bill collectors from calling you before 8:00 am or after 9:00 pm. The collectors or repossession agents cannot communicate with third parties such as your neighbors, family members or your dog (though try they might). Nor do repossession agents have the right to contact you at work unless they have received permission from your employer.
Debt Collectors & The Law
Some debt collectors have used deceptive means in which to contact you by pretending to be someone else. It can seem there is no end to the devices debt collectors are prepared to use in order to extract money from debtors. However, the law is clear, debt collectors cannot:
- Use false misleading means to collect debt.
- Threaten or use violence.
- Adopt obscene or otherwise profane language.
- Say you will be imprisoned or have your property seized (if not the property lender).
- Pretend to be an attorney.
- Add unauthorized fees and charges
- Threaten legal action that they are not able or prepared to uphold.
- Cash a predated check prior to the date written on the check.
If a debt collector infringed on any of the above rules they can be sued in court under the Fair Credit Collection Practices Act, 15 U.S.C.S. Section 1692.
Don’t miss our page on Aggressive Debt Collectors: How to Respond for strategies on fighting back.
Get the Debt Proven
If a debt collector has contacted you, firstly ask for proof of the debt. Accept nothing short of an authentic document which has your signature, this will validate their claim. Sometimes debt collectors can confuse you with someone else if your name, cell phone or social security number is similar therefore you must insist on concrete evidence.
If the debt clearly is yours, check if the debt is still collectable. Some debts are not collectable after a certain amount of time has lapsed – such as 15 years. The timeframe depends on your State.
NB: You must check the legality of a debt before you make any repayments as you will not be able to undo a repayment plan once it has been initiated.
What to Do When a Debt Collector Visits Your Home
If a debt collector arrives at the door, your first reaction may be to switch off the lights and hide under the stairs. However, there really is no need for panic. Whether you speak to a debt collector or not is entirely your choice. If you do not wish to talk to the visitor you are within your rights to order them from your property. If an debt collector refuses to leave you can call the police and report a trespassing violation.
If a debt collector comes to repossess your car and it is on your property, you have the right to hold onto the vehicle.
Debt Collector Obligaitons After Contact
Within five days after you are first contacted, a debt collection company must inform you of the following:
- the amount of the debt;
- the name of the creditor to whom you owe the debt;
- a statement which says unless you dispute the validity of the debt within 30 days, the agency will assume the debt is valid;
- a statement which says if you notify the debt agency in writing within that 30-day period that the debt is disputed, the agency will mail you proof that you owe the debt; and
- a statement that informs you that you may request – in writing and within that 30-day period – the name and address of the original creditor.
For information on how to file a complaint against a debt collection agency, click here.
Negotiate with Debt Collectors
Always attempt to negotiate a more favourable repayment plan with a debt collector and if successful make sure you get the agreed terms in writing.
It also pays to be a stickler for detail so ensure you make a note of the names and telephone numbers of everyone who calls you and keep every correspondence safe. When you mail a letter or a cheque, using certified mail will prevent any misunderstandings from arising.
Dealing With Debt Collectors: Tips
- 1) Use a payphone to make calls to prevent harassment.
2) Inform debt collectors in writing that you do not want to be contacted at work,
3) If you are being treated unfairly make a complaint
4) Consider contacting an attorney that’s a member of the National Association of Consumer Advocates. If you have an attorney, the debt collector must direct all communication through them.
If you feel you’re being unfairly treated, incorrectly linked to a debt or harassed by a collector, file a complaint with Better Business Bureau or the Fair Trade Commission.
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