How to Deal with Debt Collectors

Debt collection agencies can be difficult to deal with if you don’t what your rights are. I’ve heard stories about collectors calling up to 80 times per day! That is immoral and illegal.
There is a law that can protect you from harassment. It is called the Fair Debt Collection Practices Act. This law stops collectors from using illegal and unfair means to collect their debt. The types of debt that are covered under the FDCP Act are personal, family, and household debts. This includes things like credit card debt and medical debts.
The FDCP Act makes it illegal for debt collectors to contact you before 8am or after 9pm. Also, they may not contact you at work, if your employer disapproves of the phone calls. It makes it possible for you so stop the creditor calls by writing the agency a letter telling them to cease contact. Also, you do not legally have to speak with debt collectors. If they call at an inappropriate time, you can hang up or not answer.

Here is sample letter to stop debt collection calls:
(Make sure and send this via certified mail, so you have a record that it was received. If any illegal action is taken by the collector, this will serve as a record if you decide to take legal action.)

Debt collection agencies are legally not allowed to threaten you, make false claims about their organization ( ie. they are a government agency), or imply that you can be arrested or lose you home for not paying the debt. They also may not try to collect interest or other fees on top of the debt, unless previously agreed to by you. They cannot attempt to notify others of your debts or threaten to do so (ie. call your boss about your debts).

Collection agencies may not attempt to collect a debt that you do not owe. You legally have the right to have them verify that the debt is yours. If the agency cannot show proof that you owe the debt, they can’t contact you.

Once the collection agency is notified, it doesn’t stop you from owing the debt. You are still responsible for the debt and can be sued for the owed balance. It just takes some of the pressure off of you and will stop the phone calls.