Debt Collection - Slowing Down The Process
Consumers are federally protected in their dealings with collection agencies who must abide by these rules or face possible fines or sanctions
. If you want to take control when facing debt collection efforts, you need to know your rights related to such actions. Here's some rules to consider.
Cease and Desist Order
If you have been contacted by a collection agency, you can instruct them to submit all communication through your lawyer and for them not to contact you directly. They must comply, as long as your lawyer responds to their efforts or if they want to inform you that you are either being sued or that your debt has been canceled. Another option is to insist on dealing only with your original creditor to settle you debt instead, then reopening those negotiations.
Intentions to Follow Up
Collection agencies cannot threaten you with actions they do not intend to follow through on. Such threats are considered intimidating and coercive and are prohibited by law. So if you've been informed you will sued for nonpayment, they better actually do it or they face penalties. If you've been intimidated in this way, contact either the Federal Trade Commission or your state Attorney General to file a complaint.
Proof of Debt
Upon request, collection agencies must provide written proof of your outstanding debt, including exactly how much and to whom. The time involved to produce a statement of your account can give you an opportunity to either come up with the necessary fund or reach a settlement. The collection agency has five day in which to provide you proof of liability and their authorization to collection on your debt.
You have 30 days after receipt of their verification of your debt to still contest it. To do so, you must send them supporting evidence of the error, via certified mail. Not doing so will indicate your acceptance of their findings, and collection proceedings will continue.
One more option for postponement is available after you receive the validation notice. You have thirty days in which to request further written proof of any judgment on which the claim is based, as well as the name and address of the original creditor. Your attorney can help you navigate these options.
A collection agency must stop efforts to collect on any and all debt in dispute until it mails you the requested information. If the collection agency doesn't follow this protocol, you need to contact the FTC or your state attorney general. Don't assume that everything will resolve itself, even if you are right. If the collection agency pursues action against you, you could still end up with a judgment against you.
Enforce the Rules
Collection agencies are governed by federal laws when trying to collect what's owed them, but you need to hold them accountable for playing by the rules. Seek government intervention if you have been mistreated or not heard. Delaying the process can give you just enough time to negotiate an equitable settlement, either with the debt collector, or your original creditor. Remember to get any such agreement in writing, stating it's payment in full and ask that any negative marks be stricken from your credit report.
If you have debts that have been sent to collection, it's important that you understand the rules of the game. You can avoid a great deal of hassle and possibly even save some money by gaining a better understanding of the process.
Debt Collection - Slowing Down The Process
By: Mark Andrade
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