Collection companies are getting more aggressive in 2010. They are becoming less willing to offer settlements and payment arrangements. They are getting more difficult to work with due to the ever slowing economy causing job loss and other hardships. Collection companies have been losing money throughout 2009 by accepting lower settlements, inexpensive payment plans and are now no longer going to continue at that same pace. Collection companies have become much more aggressive in filing law suits, garnishing wages and freezing bank accounts.
To give you further details to help you if you
become a victim of these aggressive collection
actions, please review these most common
questions and answers. You can also visit the
link below to learn more than what is referenced
in this article or contact Legacy's office to speak
to a credit consultant.
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
Here are some questions and answers about
your rights under the Act.
What types of debts are covered?
The Act covers personal, family, and household
debts, including money you owe on a personal
credit card account, an auto loan, a medical bill,
and your mortgage. The FDCPA doesn’t cover debts
you incurred to run a business.
Can a debt collector contact me any time or any place?
No. A debt collector may not contact you at inconvenient
times or places, such as before 8 in the morning or after
9 at night, unless you agree to it. And collectors may
not contact you at work if they’re told (orally or in writing)
that you’re not allowed to get calls there.
How can I stop a debt collector from contacting me?
If a collector contacts you about a debt, you may want
to talk to them at least once to see if you can resolve
the matter – even if you don’t think you owe the debt,
can’t repay it immediately, or think that the collector is
contacting you by mistake. If you decide after contacting
the debt collector that you don’t want the collector
to contact you again, tell the collector – in writing – to
stop contacting you. Here’s how to do that:
Make a copy of your letter. Send the original by certified
mail, and pay for a “return receipt” so you’ll be able to
document what the collector received. Once the collector
receives your letter, they may not contact you again, with
two exceptions: a collector can contact you to tell you
there will be no further contact or to let you know
that they or the creditor intend to take a specific action,
like filing a lawsuit. Sending such a letter to a debt collector
you owe money to does not get rid of the debt, but it should
stop the contact. The creditor or the debt collector still can
sue you to collect the debt.
Can a debt collector contact anyone else about my debt?
If an attorney is representing you about the debt, the
debt collector must contact the attorney, rather than you.
If you don’t have an attorney, a collector may contact other
people – but only to find out your address, your home
phone number, and where you work. Collectors usually
are prohibited from contacting third parties more
than once. Other than to obtain this location information
about you, a debt collector generally is not permitted to
discuss your debt with anyone other than you, your spouse,
or your attorney.
What does the debt collector have to tell me about the debt?
Every collector must send you a written “validation notice”
telling you how much money you owe within five days after
they first contact you. This notice also must include the name
of the creditor to whom you owe the money, and how to
proceed if you don’t think you owe the money.
Can a debt collector keep contacting me if I don’t think I
owe any money?
If you send the debt collector a letter stating that you don’t
owe any or all of the money, or asking for verification of the
debt, that collector must stop contacting you. You have to
send that letter within 30 days after you receive the validation
notice. But a collector can begin contacting you again if it sends
you written verification of the debt, like a copy of a bill for the
amount you owe.
What practices are off limits for debt collectors?
Harassment. Debt collectors may not harass, oppress,
or abuse you or any third parties they contact. For
example, they may not:
- use threats of violence or harm;
- publish a list of names of people who refuse to pay their debts
(but they can give this information to the credit reporting companies);
- use obscene or profane language; or
- repeatedly use the phone to annoy someone.
False statements. Debt collectors may not lie when they are trying
to collect a debt. For example, they may not:
- falsely claim that they are attorneys or government representatives;
- falsely claim that you have committed a crime;
- falsely represent that they operate or work for a credit reporting
company;
- misrepresent the amount you owe;
- indicate that papers they send you are legal forms if they aren’t; or
- indicate that papers they send to you aren’t legal forms if they are.
Debt collectors also are prohibited from saying that:
- you will be arrested if you don’t pay your debt;
- they’ll seize, garnish, attach, or sell your property or wages unless
- they are permitted by law to take the action and intend to do so; or
- legal action will be taken against you, if doing so would be illegal or
- if they don’t intend to take the action.
Debt collectors may not:
- give false credit information about you to anyone, including a credit
reporting company;
- send you anything that looks like an official document from a court
or government agency if it isn’t; or
- use a false company name.
Unfair practices. Debt collectors may not engage in unfair practices
when they try to collect a debt. For example, they may not:
- try to collect any interest, fee, or other charge on top of the
amount you owe unless the contract that created your debt –
or your state law – allows the charge;
- deposit a post-dated check early;
- take or threaten to take your property unless it can be done legally; or
- contact you by postcard.
Can I control which debts my payments apply to?
Yes. If a debt collector is trying to collect more than one debt from you,
the collector must apply any payment you make to the debt you select.
Equally important, a debt collector may not apply a payment to a debt
you don’t think you owe.
Can a debt collector garnish my bank account or my wages?
If you don’t pay a debt, a creditor or its debt collector generally can
sue you to collect. If they win, the court will enter a judgment against
you. The judgment states the amount of money you owe, and allows
the creditor or collector to get a garnishment order against you,
directing a third party, like your bank, to turn over funds from your
account to pay the debt.
Wage garnishment happens when your employer withholds part of
your compensation to pay your debts. Your wages usually can be
garnished only as the result of a court order. Don’t ignore a lawsuit
summons. If you do, you lose the opportunity to fight a wage
garnishment.
Can federal benefits be garnished?
Many federal benefits are exempt from garnishment, including:
- Social Security Benefits
- Supplemental Security Income (SSI) Benefits
- Veterans’ Benefits
- Civil Service and Federal Retirement and Disability Benefits
- Service Members’ Pay
- Military Annuities and Survivors’ Benefits
- Student Assistance
- Railroad Retirement Benefits
- Merchant Seamen Wages
- Longshoremen’s and Harbor Workers’ Death and Disability
Benefits
- Foreign Service Retirement and Disability Benefits
- Compensation for Injury, Death, or Detention of Employees of
U.S. Contractors Outside the U.S.
- Federal Emergency Management Agency Federal Disaster Assistance
But federal benefits may be garnished under certain circumstances,
including to pay delinquent taxes, alimony, child support, or student loans.
Do I have any recourse if I think a debt collector has violated the law?
You have the right to sue a collector in a state or federal court within
one year from the date the law was violated. If you win, the judge
can require the collector to pay you for any damages you can prove
you suffered because of the illegal collection practices, like lost wages
and medical bills. The judge can require the debt collector to pay you
up to $1,000, even if you can’t prove that you suffered actual damages.
You also can be reimbursed for your attorney’s fees and court costs.
A group of people also may sue a debt collector as part of a class
action lawsuit and recover money for damages up to $500,000, or
one percent of the collector’s net worth, whichever amount is lower.
Even if a debt collector violates the FDCPA in trying to collect a debt,
the debt does not go away if you owe it.
What should I do if a debt collector sues me?
If a debt collector files a lawsuit against you to collect a debt,
respond to the lawsuit, either personally or through your lawyer,
by the date specified in the court papers to preserve your rights.
Where do I report a debt collector for an alleged violation?
Report any problems you have with a debt collector to your state
Attorney General’s office (www.naag.org) and the Federal Trade
Commission (www.ftc.gov). Many states have their own debt
collection laws that are different from the federal Fair Debt
Collection Practices Act. Your Attorney General’s office can
help you determine your rights under your state’s law.
For More Information
To learn more about debt collection and other credit-related
issues, visit www.ftc.gov/credit and MyMoney.gov, the U.S.
government’s portal to financial education.
The FTC works for the consumer to prevent fraudulent, deceptive,
and unfair business practices in the marketplace and to provide
information to help consumers spot, stop, and avoid them. To file
a complaint or to get free information on consumer issues, visit ftc.gov
or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.
The FTC enters consumer complaints into the Consumer Sentinel Network,
a secure online database and investigative tool used by hundreds of civil
and criminal law enforcement agencies in the U.S. and abroad.