If you have had enough of collection agancy harassment . . .
Debt collection is the practice of collecting a debt on behalf of another company. In most cases, the debt collector purchases the account from the company that is owed the debt, assuming the debt as their own. This means they have to collect upon the debt in order to get back the money they paid for the account and then some so that they can make a profit. This can result in some rather unsavory collection practices.
If you're like most individuals who owe a debt, you are perfectly aware that you owe it and would probably pay it if you had the money. You've probably even attempted to make an arrangement with them that would work for you, but what happens is they want you to abide by their arrangement because that is what works for them.
Bad tactics debt collectors use
There are some bad tactics that debt collectors use. Because many collection agencies pay their employees a commission or a bonus for obtaining a payment, some agents will do whatever it takes to get a payment.
The tactics that these agents use range from trying to guilt you into a payment to telling you that they will sue you for everything you have to recover the amount owed. Any business cannot threaten a lawsuit if that is not the truth. Collection agency agents have even threatened to personally visit a debtor. These are sleazy tactics and these are not the only tactics that are used.
Collection agency agents have been known to continuously bully people by calling them liars and deadbeats. This can have a severe emotional impact on an individual, especially when a hard time is the reason why the bill has not been paid yet.
Your rights
If you're tired of being bothered by debt collectors, know that you have rights. You've probably even been harassed a time or two. Did you know that harassment is against the law? Threats are against the law as well. If a collector is found to be in violation of the Fair Debt Collection Practices Act, they can be penalized. By knowing your rights, you can complain about unfair practices and the collection agency can be investigated.
A collection agency can not:
- Tell your employer about the debt
- Call your neighbors to collect a debt
- Threaten a fictitious lawsuit
- Threaten imprisonment or criminal action against you
- Report the account as stolen money or a stolen item
- Check on your alien status
- Imply that the collection agency has investigators working within it
- Threaten to sue for collection costs or any other fees
- Say that they are an attorney when they are not
- Say that the account is going to be forwarded to an attorney
There are some other items that you may not be aware of that are considered illegal. If the collector claims to be an attorney, by law that attorney has to review every letter that is sent. If they don't, they are in violation of the Fair Debt Collections Practices Act. The letter must also be signed by hand and not a stamp or a photocopy. Threats that the issue is going to become a legal matter or that they will be turning the debt over to their legal department are illegal, as well as letters that say the collector will advise the creditor to sue or recommend litigation.
Know that you do not have to discuss anything with the creditor. If you do, you don't have to give them information about your financial status. You don't have to give them any information you don't want to give.
Tell debt collectors to stop bothering you
There are ways that you can get the debt collectors to leave you alone. For example, the Fair Debt Collections Practices Act says that a collector cannot call you at work if you have told them your employer does not permit such calls.
If you are not entirely sure you owe the debt, you can ask the collection agency in writing to validate the debt. They are then required by law to send you a letter that validates the amount of the debt, the name of the creditor, and a statement that says you can dispute the debt. All collections activity stops during the validation period and the collections agency has 30 days to respond. If they cannot validate the debt, there is no proof you owe it.
If you do owe the debt, then you can request that the debt collectors only correspond with you in writing. This is ideal since you have a record of everything said. You can also send a cease and desist letter to cease all communication.
If the collections agency violates your rights, then you may be entitled to a lawsuit in your favor.