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by Michelle_Williams from Philadelphia

Last Post 55 days, 21 hours Ago


KNOW YOUR RIGHTS WHEN COLLECTORS CALL!
Mar 18, 2008 | 4:58 PM
Category: News
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IF YOU'VE EVER BEEN HARASSED BY A BILL COLLECTOR YOU KNOW WHAT IT'S LIKE. JUST THE SOUND OF A RINGING PHONE CAN MAKE YOU CRINGE!

Have you told collectors to stop calling but they call anyway? Do they demand more money than you can afford? Are collection agents discussing your debts and other personal information with employers, neighbors, even your parents? STOP SUFFERING! All of those techniques are illegal and you can stop them!

Of course, if you have debt, you are obligated to pay up and debt collectors have a job to do. However many bill collectors cross the line, morally and legally. You need to know your rights so you can stop the harassment before it starts.

First - Here is some great straight-forward advice from the author of Credit Lifeline, Pearl Polto. Polto has been writing and advising people about how to restore good credit for nearly two decades. I was floored when I heard her explain the 'business' of debt collecting, "If people stopped paying the bill collectors then Washington would have to turn the tables around to say to the creditors, hey you have to do something here."

So how does your debt end up with a debt collector? Polto explains, "A bill collector comes to them (credit card company) and says can we buy this account? Pennies on a dollar. Now let me make this clear, you didn't sign any contract with any bill collector, you signed it with the creditor, not with the bill collector. So if you pay them even $10, even if you paid them $10, it's money in their pocket."

Here's the other thing you need to know that could save you a lot of money and aggravation. Most debts expire and you can dispute them.

"You tell the credit bureau, in writing now, I'm disputing this, now their their job is to investigate it with that credit card company but guess what, the credit card company doesn't have your account any more, they sold it. But the law states under section 611 if the creditor, not the bill collector, if the creditor does not respond back to that credit bureau in 30 days, not 7 years, the account has to be removed."

Second - The Federal Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Of course, the law does not erase any legitimate debt you owe.

HERE ARE SOME ANSWERS COMMONLY ASKED QUESTIONS ABOUT YOUR RIGHTS UNDER THE FAIR DEBT COLLECTION PRACTICES ACT

How may a debt collector contact you?

A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts.

Can you stop a debt collector from contacting you?

You can stop a debt collector from contacting you by writing a letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.

May a debt collector contact anyone else about your debt?

If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

What must the debt collector tell you about the debt?

Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

What types of debt collection practices are prohibited?

Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact.

For example, debt collectors may not:

use threats of violence or harm;

publish a list of consumers who refuse to pay their debts (except to a credit bureau);

use obscene or profane language; or repeatedly use the telephone to annoy someone.

15 Comments |  Add a Comment

Member Comments Total Comments: 15
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DeweyDevil read my blog view my photos
Mar 18, 2008 | 7:17 PM

Great stuff Michelle.

With the reworked bankruptcy laws from a few years ago, it makes it tougher for consumers to start over and has created a huge collection industry.

My first job out of college was for a finance company. We sold high interest loans to consumers. I was taught all about the fair debt collection act.

A dirty trick that was used was to say "if we cant work out a payment arrangement legal action may be required".

The above statement is phrased very carefully.
The word "may" negates any sort of "threat".
The term "legal action" is a play on words.
The consumer thinks they will be sued. All it means is the creditor will continue to take actions that are deemed legal by law. It does not mean law suit.

In fact our loans were typically unsecured installment loans like credit cards.

If it hit 180 days deliquent we would sell the loan for pennies on the dollar to a collection company and it would be written off as bad debt by us.

I believe the only entity that could file a lawsuit would be the original issuer of the loan. We never sued anyone.

I also believe in pennsylvania you can not garnish wages for unsecure debt. At least you could not in the early 90's. You could also not attach liens to real property in pennsylvania for unsecured debt back in the 90's.
electrons read my blog
Mar 18, 2008 | 7:50 PM

Excellent information! Thanks.
Noslackblack
Mar 18, 2008 | 11:23 PM

I think that you story was one sided and unfair to the thousands of bill collectors that operate within the law and work diligently to offer customers a positive solutions to to resolve their debt. I have been a bill collector for 20 years plus and I educate the customers about the law and I go out of my way to lead them to resources that will give them peace of mind. Your story only represents a small portion of the collection community. You are an award winning reporter and I am a little disappointed in the fact that due deligence was not done in developing this story. I think you need to do a follow up and close with tips that lead consumers to resources that help them to pay their obligations with integrity
NHOJKIS read my blog
Mar 19, 2008 | 3:17 PM

can some like you be hired. to help me with my finical problem.
m.owsik@verizon.net
NHOJKIS read my blog
Mar 19, 2008 | 3:19 PM

can someone like you be hired. to help me with my finical problem.
clockit
Mar 19, 2008 | 5:21 PM

In response to DeweyDevil Yes you can be sued by a debt collector! I was and I had no idea this could happen, but it did. And it was by a debt collector NOT the "original issuer of the loan"
leasing_queen
Mar 19, 2008 | 9:57 PM

in response to clockit, you can appeal and win like I did since it was a debt collector and not the original creditor. The debt collector received the notice to appear in court for the appeal and did not come. Most of them will not come because they know they will loose on the appeal.
Noslackblack
Mar 20, 2008 | 8:37 AM

A debt collector can sue only with the "Clients" permission and on the condition that the creditor is present at the legal proceedings. As a bill collector, I consider a number of things before proceeding with legal action. Is it cost effective? If I prevail what are the chances to recover the funds? Are there assets that can be attached? Since Collection Agencies work on commission, legal action in most cases is not cost effective. If there is a solid contract in place, and goods and services were delivered in good faith...it makes sense to pursue if the customer refuses to resolve the issue. The statement made by leasing_queen that most will not come if the case is appealed is WRONG. I also work in leasing and I am in court a lot. The important thing to remember here is that if you have something that can be attached through judgement proceedings it is a good idea to try and resolve the issue rather than look for ways to avoid it. If the balanc of the debt is under 10k, it would take a lot to sue a consumer. Most clients use agencies to avoid litigation. Very few clients will authorize suit unless the probability of recovery is high!
pebblez
Mar 20, 2008 | 10:24 AM

your story was so helpful, we are being harrassed currently, we fell behind due to my husband getting cancer, they call me tell me "your driving a stolen truck", "your only a pet sitter", "do you want your daughter to see you get arrested"...I'm at my wits end...your information is helpful, I'm going to use it right away. I also started saying to them, that I'm on medication and will be recording the conversation due to the fact that the meds make me forget things...funny how different they speak to me when I ask for permission to record...it works so far..thanx again
gunpowderNlead read my blog view my photos
Mar 20, 2008 | 7:36 PM

I don't have a problem with collectors,, but I do have a problem with solicitors who refuse to take no for an answer. I have found something that is quite effective on solicitors and would probably work on bill collectors too.... it's a Police Whistle. You tell them very nicely that you are not interested in speaking to them, if they continue to talk, repeat yourself once... and if they continue to talk... blow the heck out of the whistle right into the telephone.
Noslackblack
Mar 21, 2008 | 12:23 AM

Gunpowdernlead...If people follow your advice, they could be charged with Assult and even more if the whistle results in personal injury to the Bill Collector.

Pebblez...The person you were speaking with violated many parts of the FDCPA, Fair Debt Collection Practices Act. In your case, I would go to the original collector, find out who is in charge of Collection Agencies and then file your complaint with them. This will hurt the agency more because they would most likely lose the business. I would also file a complaint with the Attorney Generals office.

What is missing from everyone's story on this blog is why no one seems to be interested in working out a solution. When people do not pay thier obligations, it has a domino effect on our economy.
SJTransplant
Mar 21, 2008 | 10:20 AM

A few years ago, Pearl Polto hired my in-laws to create packages of "Credit Lifelife" to sell on QVC. Needless to say, the segment was not a success. However, Pearl failed to pay a $10k+ bill to my in-laws. The business has since closed because of financial difficulties. I find it hard to take advice from someone who has done what she did.
getcredithelp
Mar 22, 2008 | 6:51 PM

If you need help with your credit and or need to be guided in the direction to get items removed or to help get your credit rebuilt, contact Get credit help at Getcredithelp@yahoo.com we are a philadelphia based organization and can help you to the best of our ability
lodge607
Mar 24, 2008 | 2:04 PM

There is a real need here for some education. I've been in collections for more than 30 years and even owned an agency for a while. The FDCPA is a very large law-it takes into account many areas of collections and can not be explained in 2 or three sentences. We need to make a distinction between "bought" paper and standard collection which is placed at an agency by the ORIGINAL creditor. Same laws apply but there are a lot that would fall back to the new owner of the debt. Whether or not to bring the matter to court is a BUSINESS decision; and it is only that. It doesn't matter who owns the debt--it's only a recovery procedure. This isn't JUDGE JUDY you signed a contract you live up yo it and nobody cares if your neighbor's dog bit you. NOSLACKBLACK is right just pay your bills or make arrangements don't play hide 'n'seek. We know how to find you better than you know how to hide. And to the bill collectors who may not be aware of it--the law holds you 50% liable for judgements for harrassment against your employer
geoearth5
Apr 12, 2008 | 4:39 PM

Here's how to deal with bill collectors:

1) Make arrangements to get into a debt settlement program. They provide Power of Attorney documents to debt collectors which state that they are not to contact the debtor. The program allows debtors to set aside monies each month to act as settlement offers (for a fee, depending upon the length of the program one enters into). Debt settlement companies are "kryptonite" to debt collectors, who often do not wish to work from them, but are forced to do so anyhow, when the debtor cannot be reached (see "2" below)

2) Once these arrangements have been made, take steps to make it more difficult to impossible for a debt collector to get in touch with you. For example, turn off the ringer to your telephone at work or at home, contact neighbors, friends, and family , advising them to do the same, or have them state that such calls are not permitted - and hang up, no matter how often the calls come through. If the debt collector gets through, state that this person is not to call any longer, and follow-up with a letter stating the same. Also, let the debt collector know that any arrangements for obtaining information will have to be done with the debt settlement company.

3) If a debt collector continues calling, talk with the debt settlement company, and make arrangements for filing a complaint on violations to the Fair Debt Collection Practices Act. This usually forces the debt collector to work on your terms. If any messages are left, tape these and share them with the debt settlement company, as this can strengthen the ca
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Michelle_Williams

Michelle is an Emmy-award winning journalist and consumer reporter for the Real Deal on Fox 29 News.

Member Since: 3/7/2007


 

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