Debt Collectors and your rights!

Are your phones ringing off the hook? Is your cell phone receiving  illegal auto-dialer calls? Are they harassing you about a bill you supposedly owe?

SEE BLOGS; Debt Collection Issues

Share your story!
We want to hear your experiences with abusive debt collectors! Leave a comment below and share your story or send an email and put "Debt Collection Story" in the subject line.

Know your rights!

Consumers are finding it increasingly difficult to steer clear of abusive and often illegal debt collection practices. Frequently debt collectors harass the consumer at work and threaten to contact their employer and/or neighbors and family members. Of course what they don't tell you is -sharing information about any debt with anyone other than a spouse is illegal.  They are simply trying to instill enough fear in the debtor that they will give in and pay up-regardless whether or not they actually owe the debt.

Whether the alleged debt is legitimately owed or caused by identity theft, bogus medical bills, accounting errors or fraud-you have rights you should be aware of.

The National Association of Consumer Advocates provides a great way to interpret your rights under the Fair Debt Collection Practice Act:

"...Rule of Thumb: If your mother would be upset about you treating other people the way that you were treated by the debt collector, then the conduct probably violates the FDCPA (Fair Debt Collection Practices Act)

Here's the NACA article in its entirety: Debt Collection Abuse

In spite of federal and state legislation, debt collectors continue to abuse consumers in order to unfairly pressure them into paying debts. These abuse tactics are often intended to scare or intimidate consumers, sometime with threats of violence or arrest. Other debt collectors will try to pile on illegal interest or fees to make the debt seem larger that it actually is. In some instances, these debts are time-barred, discharged in bankruptcy, or not owed for other reasons.

The Federal Fair Debt Collection Practice Act (FDCPA) bars all forms of unfair, abusive and deceptive collection practices. While the statute provides a laundry list of potential violations, this list is not exclusive. The statute also provides a general prohibition on any form of deception, abuse, or unfair treatment.

Here's a general rule of thumb you can use to interpret this: If your mother would be upset about you treating other people the way that you were treated by the debt collector, then the conduct probably violates the FDCPA.

What Are My Rights?
Federal and state laws give you rights against bill collector harassment. Collection agencies and debt collectors are required to provide you with a notice of your rights within 5 days of the first communication with you. Below are all listed in section 1692c of the FDCPA:

You have the absolute right to demand that a debt collector cease communication. You just have to write a letter setting forth your demand. If you notify the collector that you refuse to pay the debt, that notice also serves as a cease communications notice. In either event, the debt collector may no longer communicate with you except to notify you that he is exercising specific rights.

Debt collectors are prohibited from collecting debts that are not owed. You have the right to demand that the debt collector prove you owe the money. This process is known as "validation" of the debt. Debt collectors must notify you of this right, and if you request validation in writing within 30 days of receiving your notice of rights, the debt collector must either validate the debt to you or cease collection efforts.

What Should I Do?
You should gather and organize all the information you can about the debt, as well as the collection efforts of any past or current collectors who contacted you. The past correspondence provides important information about the kinds of charges and interest that have been added to the debt.

If you have copies of your credit reports, you will need those also. The credit reports also contain historic information about the debt, including the time it was incurred, when it was defaulted, and who may have collected it previously

If you have any notes about the debt or any taped conversations, threatening letters, or any communication whatsoever with the collector, these can be extremely valuable in reconstructing the collection efforts and any abuse. Whenever you are contacted by a collector, you should note the date, time, person you are speaking to and the content of the call including any abusive language or threats. If at all possible, you should keep these notes together in one central spot.

If you have any witnesses who can corroborate that you were abused, you should get a brief statement from that witness in their own words. These statements will help to refresh the witnesses' memories when you get to trial and provide information to your attorney.

The Fair Debt Collection Practices Act prohibits debt collectors from using unfair or deceptive practices to collect overdue bills that a creditor has forwarded for collection, even if those bills don't result from identity theft.

You can stop a debt collector from contacting you in two ways:

• Write a letter to the collection agency telling them to stop. Once the debt collector receives your letter, the company may not contact you again with two exceptions: They can tell you there will be no further contact, and they can tell you that the debt collector or the creditor intends to take some specific action.
• Send a letter to the collection agency, within 30 days after you received written notice of the debt, telling them that you do not owe the money. Include copies of documents that support your position. Including a copy (NOT original) of your police report may be useful. In this case, a collector can renew collection activities only if it sends you proof of the debt.

If you don't have documentation to support your position, be as specific as possible about why the debt collector is mistaken. The debt collector is responsible for sending you proof that you're wrong. For example, if the debt you're disputing originates from a credit card you never applied for, ask for a copy of the application with the applicant's signature. Then, you can prove that it's not your signature.

If you tell the debt collector that you are a victim of identity theft and it is collecting the debt for another company, the debt collector must tell that company that you may be a victim of identity theft.

While you can stop a debt collector from contacting you, that won't get rid of the debt itself. It's important to contact the company that originally opened the account to dispute the debt, otherwise that company may send it to a different debt collector, report it on your credit report, or initiate a lawsuit to collect on the debt.

For more information, see Fair Debt Collection, a publication from the FTC.

For more information on Debt Buyers, Debt Collectors and your Rights listen to the below interview with Attorney John Watts a top consumer protection attorney who talks about your rights, how to deal with abusive debt collectors, the debt buyer industry and what you need to know when it comes to protecting your credit and your rights!



SEE BLOGS; Debt Collection Issues