Posts tagged ‘Debt Collection Agencies’

Dont make these seven mistakes when dealing with debt collectors.

By Admin, 12 August, 2010, No Comment

Dont make these seven mistakes when dealing with debt collectors.

The number of complaints about debt collectors is on the rise. From 13,950 reported to the Federal Trade Commission in 2000, the number has ballooned to over 66,000 in 2005. And these are just the ones reported–the greater number of complaints go unreported. But this isnt the worst; a significant number of complaints are coming from consumers who do not even owe the debt.

So whats going on here? It is apparent that debt collection agencies are becoming increasingly competitive and that they are getting more aggressive in an effort to improve their bottom line. And to do this, they have to put more pressure on the one who owes the debtthe consumer, you.

What can you do if you are caught in the crosshairs of a debt collector? Enforce your rights. As a consumer, you have rights under the Fair Debt Collection Practices Act (FDCPA.) These rights mean that you cannot be lied to, abused, or harassed when a debt collector is trying to collect from you. And these rights have teeth. When a debt collector violates the provisions of the FDCPA. when he or she violates the rights you have under the FDCPA, you can sue for damages and for attorneys fees.

But when dealing with debt collectors under the FDCPA, dont make the following four mistakes:

1. Not knowing your rights. You need to remember that you have rights even when you havent paid what you owe for whatever reason. We dont have debtors prisons anymore and debt collectors cant buy a license anywhere to have any kind of open season on anyone who is delinquent in paying debts. This is true because of those rights. So make sure you understand just what those rights are. You cant claim them if you dont know them.

2. Not keeping records. To be able to enforce your rights, youll need to keep some records. This will mean a phone log (the number of calls and when can both be violations of the FDCPA); notes from the calls (what they say to you may not be abusive, harassing or a misrepresentation); and all the letters they send to you (they must have the proper notices and may not confuse you about what you need to do) as well as the letters you send to them. All of these must be kept for you to better make your case.

3. Not responding on time. You have certain rights that must be exercised within a certain period of time or they are lost. (The right to verification information is one.) So be vigilant about any time limits. Respond when you need to and file suit on time–if it comes to that.

4. Avoiding the calls. Dont avoid the phone calls either. It is only by dealing with the debt collector that any of your rights under the law may be exercised. And exercising those rights–for example, the all-important right of verification– might just make the problem go away. (If the collector cannot verify the debt, he or she cannot continue to collect it.) So it is better to take the call and talk.

In dealing with debt collectors, it also pays to be smart. So, for example, dont also make the following three mistakes:

5. Not negotiating. Debt collection agencies most often buy the debt. And they buy it for less than you owe on it. Their profitability comes from getting you to pay more– and possibly a lot more– than they paid for it. So make sure you try to negotiate a lower figure. They just might accept it.

6. Ignoring the debt. Ignoring the debt is only going to cause more problems. If the debt collector understands that his or her efforts are not going to get you to pay, that may start the clock on any lawsuit they can bring on the debt. And that only gives the debt collector the advantage. Keep the advantage with you.

7. Paying by personal check. Paying by personal check gives the debt collector your account number and the name of your bank. That can create some problems with unscrupulous debt collectors who might be tempted to do something shady like setting up an electronic payment. (Its been done.) And that isnt good. But it also gives them information they can use if they want to enforce the debt through legal means. Why make it any easier?

If you are faced with any attempt to collect a debt, make sure you get all the information you can. If you do, youll be more able to enforce your rights–and they will be less able to intimidate you. Both of these come out on your side of the ledger sheet.

Debt Collection And The Law Know Your Rights

By Admin, 27 May, 2010, No Comment

If you owe money to a debt collection agency or debt collector, you need to know what they can and cannot do in order to collect monies owed to them. You have an obligation to pay what you owe, and the debt collectors have an obligation to follow the law and not harass you at home or at work.

The Fair Debt Collection Practices Act applies to those who collect debts owed to creditors for personal, family and household debts. These include car loans, mortgages, charge accounts and money owed for medical bills. A debt collector is someone hired to collect money you owe.

Within five days after a debt collector first contacts you, the collector must send you a notice that tells you the name of the creditor, how much you owe, and what action to take if you believe you don’t owe the money.

If you owe the money or part of it, contact the creditor to arrange for payment.

If you believe you don’t owe the money, contact the creditor in writing and send a copy to the collection agency with a letter telling them not to contact you. A debt collector may not:

Contact you at unreasonable times, for example, before 8 a.m. or after 9 p.m., unless you agree;

Contact you at work if you tell the debt collector your employer disapproves;

Contact you after you write a letter telling them to stopexcept to notify you if the collector or creditor plans to take a specific action;

Contact your friends, relatives, employer or othersexcept to find out where you live and work;

Harass you through threats to harm you, profane language or repeated telephone calls;

Make any false statement, or claim that you will be arrested; or

Threaten to have money deducted from your paycheck or to sue youunless the collection agency or creditor intends to do so and it is legal.

You have a responsibility to pay off any debt that you owe. Debt collection agencies also have a responsibility to treat their customers with respect and follow the law.

If you are being harassed by a debt collection agency, contact the authorities and report them.

Debt Collection

By Admin, 20 May, 2010, No Comment

If you have a credit card, you may have heard from debt collectors more than once, reminding you that you are late with your payment. Most times you may find them annoying reminders. While debt collection is subjected to a regulation known as the Fair Debt Collection Practice Act, you are not dismissed from your obligation to pay your debt. The collection agency or the originator can file charges against you should you fail to settle your outstanding balance.

Many companies employ the services of a third party provider of debt collectors to contact and remind their clients about their debts. Debt collection services include, following up on clients through all means of communication tools, like fax, telephone call, mail or email. They are the ones who contact customers and remind them to settle their outstanding balances. Most debt collection agencies or companies operate under a no collection, no pay principle, meaning that if they cannot collect for the client, they will not be paid for their services. A long list of companies that need this kind of services include those outside lending companies such as banks, credit and insurance companies, The list also includes cable operators, water, heat and electricity providers, telephone companies, etc.

These debt collection services ease the burden for their client companies in going after delinquent customers. But it is imperative for companies to choose the right debt collection agencies. After all, these debt collectors communicate directly with customers and operate on behalf of the company.

The debt collectors must maintain an air of courtesy. They must not in any way harass the customer, and they must proceed with their tasks observing ethics and confidentiality. They must also properly identify themselves and not cause undue inconvenience to the customer. Customers, under the Fair Debt Collection Practice Act are protected against harassment from debt collectors.