Pay Attention To Debt Collection Tactics
If you're behind on your bills, chances are you know it
. It's also likely that, should debt collectors come calling, you'd rather avoid answering the phone and opening the mail. However, there are several good reasons why you need to steel yourself and face the calls and letters. Let's review them.
First, and most importantly, you must document everything. All too often, debt collectors cross the line and engage in collection practices that are in violation of the Fair Debt Collection Practices Act. If you're not paying attention, you can't document your communications with debt collectors. Without documentation, it's difficult to seek the monetary award you're entitled to if a debt collector violates the FDCPA.
You should get in the habit of keeping a logbook of calls and voicemails from collectors. In the logbook, you should note the dates and times of the calls, the name of the person who called you, the number he or she called (i.e., your home, your work, your cell), and what was said. Keep a lookout for red flags, such as threats of arrest, threats of legal action, abusive language or swearing, and the like. If your state allows phone calls to be recorded without the other party's consent, go ahead and record the calls. Keep any abusive voicemails you may receive. If friends or relatives mention that a debt collector has called them in an attempt to find you, write that down as well.
Similarly, date stamp all the correspondence you receive from a debt collection agency. In addition, remember to keep the outer envelope. The FDCPA has strict rules about what the envelope can and cannot say.
The second reason you need to pay attention is that debt collection agencies sometimes tack on "collection fees" and interest above and beyond what your credit agreement states. This is especially true for agencies that collect on behalf of debt buyers. Again, the FDCPA has specific provisions prohibiting certain kinds of fees, so you need to be careful that you're not paying more than you owe.
The third reason to keep tabs on what's happening with the debt collection process is that debt buyers often file lawsuits against consumers. More often than not (up to 90 percent of the time), consumers don't show up in court to defend themselves. When that happens, the judge automatically rules in favor of the debt collector - even if the debt collector has the amount wrong or is going after the wrong person. If you have a judgment against you, your wages can be garnished and your bank accounts frozen. That's the last thing that you want.
Keep in mind that, if a debt collector crosses the line and engages in illegal collection practices, you do have recourse. With the help of a fair debt attorney, you can file suit against the agency. The law says that consumers can get up to one thousand dollars, as well as attorney fees. For that reason, most fair debt attorneys won't charge you a penny; when you win in court, they'll be paid by the debt collection agency.
by: Sergei Lemberg
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