Debt Collectors Harassment: Put a Stop to It!

Author: Lara Sawyer

 Those undergoing a difficult financial situation know how annoying debt collectors can be and how often they disrupt people’s life and contribute to increase the stress of an already stressful situation. Some of the practices that debt collectors use are often in the verge of illegality and immorality. But not too often people know how to protect themselves and how to put a stop to debt collectors’ misconduct. Following are some tips and methods you can use to defend yourself and others from debt collectors’ abuses.

The type of practices that debt collectors can make use of vary from state to state but if you want to know whether a certain practice is legal or illegal you should take into account the Fair Debt Collection Practices Act that provides regulations for those company working on the debt collection field. Local regulation can be even harsher on collection agencies than federal regulations and thus, it is a good idea to contact a specialist when you are being harassed by a debt collection agency.

Contacting The District Attorney

As explained above, regulations vary from one state to another and thus, contacting your district attorney is a smart move. Sometimes they are just too overwhelmed with job and they can not help you much and though they can always delegate on subordinates they may also be too busy. If the situation is just too stressing and you can not wait for the times that public representation imposes, you can also try contacting a private attorney to represent you and engage in legal conversations and negotiations with the collection agency to force it to cease and desist on their harassment practices.

Legal Actions And Costs

What you need to understand is that this type of legal actions can be expensive and though in the long run you may win and obtain an order from the court for damages to be paid to you, that may take a while and in the meantime you will need to pay for the fees and costs from your own pocket unless you find a lawyer willing to take the risks and costs and collect at the end of the trial. If you are victorious you can recover all the legal fees and costs plus an additional amount for you when the court orders damages to be paid, however, you should always consider that the possibility of losing exists.

What to Expect From The FTC

It is important to understand that this is not the main purpose of the federal trade commission and therefore there are more practical approaches to this issue. Nevertheless, the federal trade commission can take action when one of these companies repeatedly violates the fair debt collection practices act or other regulations on this matter. A single complaint about a debt collection agency may not be enough though, and only after several complaints the FTC may resolve to take action. Yet, that is the reason why it is important to make a complaint. All complaints will be registered and once an agency accumulates enough complaints an investigation will take place.

The Federal Trade Commission can block the operations of an agency that repeatedly violates the Fair debt collection practices act, it can also impose fines, conduct legal investigations with the aid of other federal agencies, etc. Though contacting the FTC may not be a solution for you right away, it will certainly help others that would otherwise suffer what you had to go through. It should not be your only curse of action but you should file a complaint with them nevertheless.

Article Source: http://www.articlesbase.com/debt-consolidation-articles/debt-collectors-harassment-put-a-stop-to-it-431657.html

About the Author

Lara Sawyer is a professional loan advisor used to solving bad credit problems and helping people secure home loans, car loans, personal loans, unsecured credit cards, home equity loans, refinance mortgage loans and plenty of other financial products. Whether you want to learn more about Bad Credit Loans and Debt Consolidation Loans or find information about other loan types, just visit: http://www.fastguaranteedloans.com/

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What To Do About Debt Collection Harassment

Author: Antonio Filippone

If you have ever fallen behind on a debt for more than a month you have probably experienced the dreaded call from the debt collector. And while some debt collectors are just people like you and me trying to do their job, others can be down right abrasive in their attempt to collect your back payments. Some people have been treated like a criminal, talked down too, embarrassed at their place of employment or even in there home while entertaining friends. This does not have to happen to you.

You should know that the Fair Credit Collection Practices Act (FDCPA) protects you as the debtor. The law does not negate the debt you own but it insures that you are treated fairly by debt collectors and it even prohibits certain types of collection practices.

If you are currently in this situation and you are concerned with maintaining a decent credit score in the future it is a good idea to try and make realistic payment arrangements that you can afford. If the collector attempts to have you agree to a payment arrangement that you know you can not follow through on simply say so and never agree to any terms that don't seem reasonable to you.

If however collectors are unwilling to cooperate and continue to harass you, ask them to stop calling. This usually will stop the calls but in case it doesn't you can then send them a Cease and Desist letter. This is much easier than it sounds. Here is what you can do.

Ask the caller for his companies name and address. (This is information they must disclose so do not be afraid to ask for it) Then write a standard business letter with your name and address at the top, the date, and your account # in question. Under that you will put their company name and address then after a brief greeting you can state, According to the Fair Debt Collection Practices Act,15 U.S.C. section 805., you are hereby notified to cease and desist all further communication with me in regard to the referenced account. Failure to comply will result in a complaint being filed against you with the Federal Trade Commission, the Attorney General of your state. I also reserve the right to file suit against you for any future violations of this law. I will record any phone calls if you fail to comply with this notice. Then ad your salutation and sign it. You want to be sure to mail the letter using certified mail using the return receipt requested feature.

This process almost always works but remember they do still have a right to continue to collect the debt. They can file a law suit to try and collect the debt. Although sending a cease and desist letter is a valuable tool, it should only be used when absolutely necessary and after reasonable negotiations have failed. Keeping open communication is a better choice as long as you are not being harassed.

Article Source: http://www.articlesbase.com/finance-articles/what-to-do-about-debt-collection-harassment-1862988.html

About the Author
Antonio Filippone is a respected Speaker, Author, and Consultant on the topic of financial planning for middle American people.Readers who are interested in learning how to quickly fix their money problems can read his unique story at http://www.NotYetWealthy.com

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One of the worst aspects of being in debt is the seemingly endless calls from creditors trying to get money out of you.  It is the nature of the calls that is one of the most stressful factors.  People are often angry that they have not been paid, so can be rude and even threatening at times.  When you simply do not have the money to pay your creditors what you owe them, you are left in a very difficult situation because all they want to hear is how you are going to give them their money.

Debt collection agencies are often used by creditors to collect debts, and some of these organisations do have a reputation for being a little over enthusiastic when it comes to finding ways to squeeze money out of people.  They often work on a commission only basis so their incentive is that if they do not collect on the debt they do not get paid.  That is quite an incentive and has led to some bad practices by a few agencies.

The only way to stop creditor harassment is to take action to settle the debt.  Creditors will not go away if you try to ignore their calls, but they will stop chasing you if they know you are actively engaged in a process that will allow you to repay your debt.  If you engage with your creditors and let them know exactly what your circumstances are they are likely to be more understanding.  If they see that you are seeking expert help in order to tackle your debt, there is a greater chance that they will be open to negotiation in terms of finding a way forward.

There are several possible ways to deal with consumer debt problems, and the best one for you will depend on how much you owe, how many creditors you have, what kind of debt it is, etc.  Debt management plans are used a lot by people with fairly serious debts who have a decent income that can be used to make regular payments to a debt plan.  For those people whose situation is worse than this, perhaps struggling to keep up with payments on large amounts of debt, the best answer is probably debt settlement.

Debt settlement is sometimes the only way to deal with very serious debt because it involves actually writing off a large part of it.  Instead of just working out how to repay the full debt in a different way, debt settlement is about negotiating a large reduction on the total amount owed, in exchange for settling the rest of the debt quickly.

Creditor harassment stops when you start debt settlement because the debt settlement company deal with your creditors for you.  All you do is make a monthly payment into a separate fund where your money is left to grow.  When a settlement agreement is reached with a creditor this pot of money is used to make the payment to them.

For UK residents, debt settlement is not something generally available, because there is another solution introduced by the government which fulfils the same function.  An IVA is a formal arrangement that involves you making a fixed monthly payment for the duration of the IVA (usually up to five years).  At the end of the agreement any remaining debts get written off, which can mean wiping out a substantial chunk of debt.

If you decide to use debt settlement or an IVA to put an end to creditor harassment you will need to carefully select a good company to work on your behalf.  It is important to be careful about choosing a well respected and proven company as there are quite a few out there now that cannot be relied on to actually improve your situation.  To be sure of using a good company just follow advice for recommended companies and apply to as many as you like before deciding which is best for you.

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In the last section we covered your rights against harassment and abuse by collectors. We also covered some options that your creditor may have to help you resolve your delinquent debt. Again I repeat that this is not legal advice but a guideline of your rights and options.

Before we begin I would like to share a little info about myself. I was a collector for about 10 years until health problems forced me to leave the profession in 2003. I was really proficient and often resolved account no one else could. My supervisors would sometimes have poor performers sit next to me and the next month they would be getting bonus money. With that experience I may have some insight to share.

If your account is in collections and you simply can't catch them up you still have options. We will explore all of them.

1) Check with your creditor to see what programs they may have to assist.

2) Pay the furthest past due payment each month.-This doesn't catch you up ever but it keeps the situation from getting worse

3) Consumer Credit Counseling--- there are many different organizations that do this. Some of them are businesses, some are not for profit. Check with the United Way. You simply pay them a set amount each month and they disperse it to your creditors. Most creditors will give special benefits to someone on this program. Typically they will bring the account current after 3 consecutive payments. (Similar to the cure program discussed in previous chapter) Since your account is current then, there are no late fees assessed. Additionally and perhaps even more beneficial is that most will reduce interest. Typically they drop the interest rate, usually to 6%-9%. Your creditors policy may be different. Your creditor will probably close your account for future charges with this option. In some case this option may save your creditor from being ruined by late payments.

4) Bankruptcy—This is also an option. Individual bankruptcy can be either 1 of 2 chapters.

7 is a straight liquidation. In other words, all of your unsecured debt is wiped out if the court approves your bankruptcy. You still must pay for your secured debts if you wish to keep them. The court MAY force you to sell some of your assets. But just because you file Chapter 7 doesn't mean you will lose your home or car. If you are at this point I strongly advise you to consult an attorney on what filing would mean to you.

Chapter 13 is similar except that your delinquent payments are paid over a period of 3 to 5 years in addition to your current payments. You may have to pay all, none or a small percentage of your unsecured debt over the term of the plan. Again if you feel this is an option then consult an attorney. If you decide this is the option for you then be aware of these facts. Once you notify your creditor that you have retained an attorney for bankruptcy and give them the attorneys name and a way to contact them, the creditor MUST stop all collection activity for " a reasonable time". Once the case has been filed they must stop all collection activity against you.

FAQ Q I mentioned to the collectors that I may file bankruptcy. They said not to because my credit will be ruined for 10 years. Is this true. A. First lets look at who told you that. A collector. His/her job is to get you to pay the debt. He may or may not get a bonus off getting you to pay. What is true is that it will report on your credit bureau for up to 10 years. Maybe even less. Will you ever be able to get credit again? Most likely. It depends on many factors. What is true that it may be more difficult to get credit but not impossible. You may also pay a higher interest rate than you would if you had never went past due.

I personally had to file a chapter 7 in 1996 after my son was in accident with medical bills over ½ million dollars. 30 days after the case was finalized I was able to get financed on a 1-year-old truck with no money down. 18 months later I had credit cards and had purchased a house and got it financed.

There are lenders whom will finance you but they charge higher interest rates This is called "sub-prime lending" Just because you are behind on your bills and cant catch up the past due payments doesn't always mean you should file bankruptcy.

Communicate with your creditor first and see what options are available, look into credit counseling to see if they can help. New laws coming into effect may make that a requirement before bankruptcy can be filed.

Q I got 4 months behind on my bills when I lost my job. I got caught up but my creditor will not fix my credit. What can I do to make them remove the bad mark against me. An If you where 4 months past due and they are reporting that, they are following the law. If a creditor reports they must report accurately This quote is from the Fair Credit Reporting Act "Reporting information with actual knowledge of errors. A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or consciously avoids knowing that the information is inaccurate. " In other words, they can't report that you weren't past due if you where and vice versa. The only way they can change a report is if it was due to the fault of the creditor. (i.e. payments posted to wrong account)

However you can place a statement into your credit file that explains any derogatory info. (i.e I was behind because of unemployment) As long as that negative information is on file that statement must accompany it. It is up to the person with whom you applied to for credit who makes the decision of if you are granted credit or not. The credit bureaus do not determine if you get credit. They simply relay your score which is based a many factors such as payment history, recent inquiries, % of total credit available to you that you have used, and income to debt ratio.

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Very few people ever get into debt with the intention that they will not pay it off. Unfortunately, life can deal us all some tricky hands, and oftentimes it is just too difficult to see this obligation through. While it may not be your fault that you are suddenly unable to pay your debt, that won't stop the creditor harassment from coming. If you are the victim of credit harassment, it is important to know your rights under the law so you can handle the situation appropriately, snd speak with an advocate of Consumer Rights in GA .

The first step in the process is to not be intimidated by collection harassment. You have rights under the Fair Debt Collection Practices Act (FDCPA), and if you are unsure of exactly what those rights might be, you can always report the creditor to an experienced attorney. In Georgia, a leading advocate for consumer rights is the law firm of Persily & Associates Georgia Consumer Rights, like the team at http://www.persilylaw.com, who can explain those rights to you and provide the necessary methods to protect yourself. If you do not live in Georgia, Persily & Associates Atlanta Lawyers may be able to help you find a collection harassment lawyer in your state.

There are also a few simple steps that you can take yourself to ensure that your rights are protected and that creditor harassment ends.

The first step in fighting collection harassment is to make copies of all correspondence, including envelopes that show postmarks. Before you contact a consumer rights lawyer to protect creditor harassment, the more complete your records, the more likely you will be to win your case. Make sure to document all phone conversations with the company as well, and write down any potential creditor harassment that takes place during those calls. These might include threats of imprisonment or garnishment of wages, profane or obscene language, or other types of abusive behavior. An attorney can advise you on additional procedures that may be appropriate, such as keeping recordings of your conversations.

Finally, don't let creditor harassment push you into doing something you are uncomfortable with. Some creditors will try to persuade you to pay your debt using a post dated check or automatic withdrawals from your account. Others collection agencies may try to dictate the amount of the payments and the intervals in which they must be paid. Keep in mind that you are the one who decides how much and when to pay your debts, no matter how much creditor harassment is occurring on the other end. If the payments are more than you can afford, talk to your consumer rights attorney about setting up smaller payments that will be comfortable for your budget.

Creditor harassment can sap your energy and create stress and strain in your life. The good news is that it doesn't have to. When you know your rights and have an experienced Georgia attorney on your side, you can stop creditor harassment and go back to the task of living your life.

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