Falling behind in bill payments is something no one intends to do. However, as a fact of life it does happen for many reasons. Unexpected emergencies, cut backs in hours, loss of job for numerous reasons, all these things can impact our ability to pay our bills. When this happens, we all must deal with the phone calls and collections letters until we can solve the situation and bring everything back in order.
The Dreaded Telephone Calls
Each time your telephone rings, you cringe. Which one is it this time? Debt collection agencies are very closely regulated by laws, but few people know their rights when it comes to dealing with debt collectors. For example, while the collection agency may put your telephone number on an automatic call list which results in a computer calling you several times a day, truth is that they are only allowed to call you once a day between the hours of 8 a.m. and 9 p.m. Many debt collectors use the telephone to harass their debtors and get away with it because far too many debtors do not know their rights.
The Collection Letters
First know that a debt collector is required to send you what is known as a validation letter within five days of their initial contact with you. They must provide you with a written verification of how much you owe and who you owe it to. Unfortunately, they can continue to send you letters with no limit. This is because you don’t have to listen to the letters and they can be set aside to deal with later. However, the contents of those letters is regulated. The creditor cannot threaten harm or misrepresent themselves as an attorney or anything of the sort, unless they are of course.
Stopping the Telephone Calls
Each and every person has rights, regardless of your financial status. While the debt collectors usually will use a guilt tactic making you feel bad for not paying your credit card bill, you do not have to make a payment right this very minute to put yourself back in a good light. Harassment such as this while not illegal is a very effective practice for the debt collectors. Knowing your rights will help you work through this. You can stop the telephone calls and scrupulous debt collectors will understand you are exercising your rights. You must send a letter to the collection agency demanding that they stop contacting you. They have about 30 days to comply with this or they will be in violation of that regulation.
To view a sample template, visit debt collection letter template.
What Can They Really Do?
Debt collectors will say they will garnish your wages, freeze your bank account, and other such actions. However, in order for them to do these things, they must first obtain a judgment against you through a court of law. This is expensive for them and takes even more time. So while they actually can freeze your bank account or garnish your wages, they first must file papers with the court and give you a chance to defend yourself and then receive a judgment before they can do any of those things for unsecured debt.
Debt collectors can only contact third parties associated with you to find out your address, your location and your place of employment. They cannot continually contact third parties either. They are only allowed to contact a third party, for example a reference that you listed, one time. They cannot demand the third party make payments either.
While debt collectors are a part of our every day lives, there are ways to work with them and establish a plan that will be acceptable to both parties. You must remember to remain calm when speaking to a debt collector and do not give them too much information. While they may seem to care about the reason you fell behind, they really don’t. They have heard all of these stories, probably twice, each day. Their number one job is to collect on your account with the highest amount of the full balance as possible. Collectors usually work for commission, so the higher the payment settlement is, the higher their paycheck is. So understanding this, you can see why they work so hard at getting you to pay off the full balance.
When you’re faced with a situation where you feel a creditor has violated the law regarding fair debt collection, you have the right to report the violation to the Federal Trade Commission or your local Attorney General’s office. Most people again do not know what their legal rights are when it comes to debt collections and therefore most violations are never reported. Find out all of the guidelines that creditors need to follow. You can also research on tips for dealing with debt collection. When one steps over the line, make sure first of all you let them know you are aware of the fact that they did so, and second report it to the Attorney General. If they stepped over the line with you, you can rest assured they’ve done so with others as well.
