Be aware of your rights when dealing with debt collectors
August 19, 2009
For most people a call from a debt collector is not a pleasant experience. But, when debt collectors violate federal laws and use threats and insults in an attempt to get you to pay a debt — possibly even a debt you don’t actually owe — the experience gets much worse.
The Fair Debt Collection Practices Act clearly defines what debt collectors are and are not allowed in do in an attempt to collect money. That doesn’t mean that all debt collectors follow those laws.
The Associated Press had this story today about a debt collection company using downright awful tactics in an attempt to get people to pay their debt. In one case the woman being threatened and harassed didn’t even owe the money. After reading that story, I saw a second story about a debt collection company getting sued over for trying to scam people.
While debt collectors are allowed to make attempts to collect money you legitimately owe, they cannot threaten or harass you. If you think a debt collector has violated these collection laws, it’s very important that you report the company to the Federal Trade Commission.
If you are contact by a debt collector:
· Get the name, address and phone number of the collection agency.
· Get the name of the person who has contacted you.
· Keep a record of the phone calls you receive including the date, time and what was said during the conversation.
· Ask the collector to send you written confirmation of the debt.
· If you think that you do not owe the debt, send a letter to the collection agency that clearly states that you don’t believe you owe the debt and why. Keep a copy of the letter for your records. This might be one time where it would be worth it to send the letter registered mail, so that someone at the collection agency must sign for it.
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