Debt Collection Articles

Debt collection: Know your rights

If you're behind on paying your bills (or a creditor's records mistakenly make it appear so), a debt collector may be contacting you.

Under the federal Fair Debt Collection Practices Act (FDCPA), debt collectors cannot use abusive, unfair or deceptive practices. Here are some common questions:

What types of debts are covered by the FDCPA?

Personal, family and household debts, including money you owe on a credit card, auto loan, medical bill or mortgage. It doesn't cover debts incurred to run a business.

When can a debt collector contact me?

A debt collector may not contact you before 8 a.m. or after 9 p.m., unless you agree. Collectors cannot contact you at work if told (orally or in writing) that you're not allowed to take calls.

How can I stop a debt collector from contacting me?

Talk with them at least once to see if you can resolve the matter, even if you can't repay immediately or think the bill is in error. If you don't want collectors contacting you again, tell them – in writing, by certified mail – to stop. They may not contact you again, except: to tell you there will be no further contact or to inform you of a specific action, such as a lawsuit.

However, sending a letter does not get rid of your debt. The debt collector can still sue you to collect.

Can a debt collector contact anyone else about my debt?

If you're represented by an attorney, the debt collector must contact the attorney, not you. If you don't have an attorney, a collector may contact others – but only to find your address, home phone number and where you work. Generally, a debt collector is not permitted to discuss your debt with anyone other than you, your spouse or attorney.

What must the debt collector tell me about the debt?

Within five days of first contacting you, a collector must send a written "validation notice" stating how much you owe, the creditor's name and how to proceed if you don't think the money is owed.

What practices are prohibited by debt collectors?

Harassment, lying and making threats.

They cannot:

Use threats of harm or violence; use obscene or profane language; repeatedly use the phone to annoy someone; publish a list of people who refuse to pay their debts; claim they are attorneys, government agents or work for a credit reporting bureau; falsely claim you have committed a crime or will be arrested if you don't pay; try to collect interest, fees or other charges unless your credit contract allows them; deposit a post-dated check early; contact you by postcard.

If a debt collection account is “settled in full” can the original ...

I opened a cell phone account back in 2002 for a friend. I thought the account was switched to his name, but the phone company lied; they can’t really do that, so it was still in my name. They kept charging the account every month, even tho it wasn’t being paid on. In 2004 they sent collections after me. I was told if I paid 1/2 the balance immediately that the account would be settled. Now, 3 years later, they’re coming after me for the other half. Can they do that? I have a letter from the original collection agency saying my payment was accepted as “full and complete settlement of the account.”

What they’re doing is totally and completely illegal. You have to take it up with the three credit bureaus (Experian, Equifax, and TransUnion). Send them a copy of the letter stating that the account was settled and accepted as such, and make sure you include the loan number. The credit bureau is the one who has to get it settled and OFF your credit report. To expedite things, I would also open a claim against them on the Better Business Bureau. A gym did a similar thing to me, and it was totally solved within two weeks. Don’t underestimate them, they’re fast, and what’s more, they’re free. Good luck!

Make a copy of the letter from the original collection agency and send it to whomever is trying to get you to pay. Send it via return receipt and preferably registered mail.

A settlement is just that. The collection agency, which is the cell companies legal representative, has agreed to settle for what you paid them. By extension the cell company has agreed to the settlement.

If they put anything on your credit report, contest it it and send a copy of the settlement letter. If they threaten to take you to court, tell them to go for it and tell them you will countersue.

No they can’t do that. Are the people trying to collect the money the same company or is it a collection company that “bought” this account from the original creditor? If it is a different company you may need to get the original company involved to prove that the account is paid. Either way-pull your credit and see if this account is showing up there. If it is, you need to send a copy of the letter you have to the reporting agencies and have your credit updated. If this account isn’t on your credit then it isn’t really “hurting” you, other than the collections people being annoying as hell!

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