With the economy in a "slump" more and more people are finding themselves unable to pay their debt. When people can't pay their debts, the debt collectors start calling. If you have been getting calls from debt collectors it is important to know your rights. Most people do not know their rights and debt collectors will use that to their advantage.
Below the fold you will find five things that you MUST know when dealing with debt collectors.
First, let me say that you don't have to take it. There are things you can do to protect yourself from debt collectors. If you constantly being harassed by debt collectors take the following steps:
- Read the Fair Debt Collection Practices Act so that you know exactly what they can and cannot do.
- Keep a call log next to the phone. Anytime they call, write down the date, time, what number they called from, and who you spoke with. Keep notes about anything you or they said. Especially write down any time that you inform them of your rights and/or they violate your rights.
- Record your phone calls. Olympus makes a very simple telephone recording device that works with any recorder. This combined with your call log will give you the evidence you need if you decide to take legal action. You should always inform the caller that you are recording the conversation.
- Take action. If they violate your rights get a lawyer and sue. You can sue for $1000 for every violation.
Here are five important things that anyone dealing with debt collecors MUST know.
Know the Statute of Limitations on You Debt
This is one of the most important things you need to know. Most people know that bad credit will be removed from your credit reports after seven years. Many people mistakenly believe that this is the statute of limitations on debt.
If a debt collector is calling and you are past or nearing the statute of limitations, and you agree to make a payment it will reset the statute of limitations. That is why it is imperative that you know when the SoL will run out on your debt. Never agree to pay a debt if the SoL has run out. You are no longer legally responsible for that debt.
Some debts have no SoL, they include: federal student loans, taxes, fines, and child support. Most anything else has a SoL.
The SoL laws that apply are based on where you were living when you made the debt. The SoL clock begins as soon as you miss your first payment. In some cases moving may change the SoL. To find more information about the SoL on your debt go here and click on the state you were in when you made the debt.
Now, do understand that this does not mean that debt collectors can't try to collect the debt. They can and do try to collect debts even after the SoL runs out. That is why it is important that the consumer knows the laws in their state and uses them to their advantage.
Debt Collectors Cannot Call you Anytime they Want
Many people believe that the Fair Debt Collection Practices Act allows for debt collectors to call you anytime between 8am and 9pm. This is not the case. The actual law reads:
(a) COMMUNICATION WITH THE CONSUMER GENERALLY.
Without the prior consent of the consumer given
directly to the debt collector or the express permission of
a court of competent jurisdiction, a debt collector may not
communicate with a consumer in connection with the collection
of any debt—
(1) at any unusual time or place or a time or place known
or which should be known to be inconvenient to the
consumer. In the absence of knowledge of circumstances
to the contrary, a debt collector shall assume that the
convenient time for communicating with a consumer
is after 8 o’clock antimeridian and before 9 o’clock
postmeridian, local time at the consumer’s location;
What this says is the debt collectors may not call you at any time known to be inconvenient to you. Only in the absense of this information may they call you between 8 and 9.
When a debt collector calls tell them when it is convenient for them to call you. You don't have to give them any explanation! Once you have informed them of when it is convenient to call you, if they call you any time outside of that it is a violation of the FDCPA. Note it in your call log!
Send a Cease and Desist Letter
In order to stop the debt collector from calling at all, you need to send a cease and desist letter.
Here is a very simple cease and desist letter I found at about.com.
Date
Your Name
Address
City, State Zip
Debt Collector’s Name
Address
City, State Zip
Re: Account Number
Dear Debt Collector:
Pursuant to my rights under federal debt collection laws, I am requesting that you cease and desist communication with me, as well as my family and friends, in relation to this and all other alleged debts you claim I owe.
You are hereby notified that if you do not comply with this request, I will immediately file a complaint with the Federal Trade Commission and the [your state here] Attorney General’s office. Civil and criminal claims will be pursued.
Sincerely,
Your Name
Send the letter certified mail. As soon as the letter is signed for, they must stop communications. If they do not, they are in violation of the FDCPA. Make a note in your call log when the letter is signed for. Make a note on any calls regarding that debt after that date.
This is important: When you write your cease and desist letter NEVER admit to owing the debt or make any statement that could be interpreted as an agreement to pay. If you do you risk resetting the SoL.
The Debt Collector MUST Be Respectful Toward You
The FDCPA compells the debt collector to be respectful toward you. They may NOT use obscene lanuage, raise their voice, use intimidation or threats, or let the phone ring or call repeatedly with intent to annoy or harass. They also cannot use caller ID block. If any of these things happens during a call make a note of it in your call log.
They Cannot Threaten Criminal Action Against You
If a debt collector suggests you may go to jail for not paying a debt, they are violating your rights. It is absolutely illegal for them to do this. Don't let them intimidate you. Make notes of such behavior in your call log.
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Whatever you do, don't let debt collectors get away with violating your rights. They will try to make you feel like you are a bad person and/or a criminal. Don't let them. People make mistakes and sometimes things happen that are out of your control. Chances are if you are dealing with debt collectors that is only one issue you are struggling with. They have no right to make things worse for you than they already are. If they are violating your rights THEY are the criminals.
If you know anyone who is battling debt collectors make sure they know their rights too.