Bill Collectors and Your Rights

Do you know your rights as a consumer under the Fair Debt Collection Practices Act (or FDCPA)?  I know them because I was contacted by one for a debt that was not mine.  Thankfully it was not identity theft related but it did cause me a brief headache.  I contacted my provider attorney and they drafted a letter on my behalf and it was resolved peacefully.

If you have ever been in collections for any reason you know that the bill collectors will try any tactic to get you to pay.  Even if you are flat broke they do not care.  This could be due to a family illness or death that requires all of your money at the time.  It is all about making the payment arrangement and then moving on to the next collection account.  They are relentless in their pursuit of collecting the debt but they must follow some rules as set forth in the FDCPA.

Here are some of the tactics that bill collectors may use: 

• Creditors may try to play on your feelings of guilt by not paying, which is a form of intimidation. Or, the intimidation may rise to the level of harassment. Speaking of harassment, a creditor might repeatedly call you or call you at inconvenient times. They may even try and call you at work and threaten to speak to your supervisor.  They may also use abusive language. What the creditor is really trying to do is put pressure on the you so it will become so uncomfortable that the you will pay the abusive creditor ahead of others that are not calling as much.
• In many cases, the creditor will give you a bad credit rating by reporting your default to a credit reporting agency. A bad credit rating may affect your ability to take out a loan or to get credit cards or even to rent an apartment. Creditors know that the best way for a consumer to clear up a bad credit rating is to pay the debts appearing on their credit report so that they may get a new credit card or apartment.
• The creditor or a finance company may try to convince you to refinance the debt. Refinancing involves replacing one or more current debts with a new one. It is frequently offered as a way of dealing with a delinquent debt or a way to consolidate several debts into "an easy payment plan", as some creditors like to say. This new debt may have many hidden disadvantages including higher interest rates.

I have actually seen people brought to tears because of some of the harsh things they will say.  Not to mention the physical ailments that can happen (headaches, nausea, vomiting, etc.) as a result of this harassment.

These are some things that you can do to help alleviate some of the calls;

• Contact the creditor and explain to them what the situation is in your household (family death, car broke down, etc.).  This is not to be confused with making up a story just to "get them off your back" either.  Be sincere in your approach as to the next time you will have the funds available to make your payment.
• You may also try and write the creditor a letter stating when you will be able to start paying on your debt again and the reasons you are not currently paying it.  You can address your current financial hardship and when you expect that it will be resolved.
• If you believe you are being mistreated by a creditor, you can contact the Consumer Response Center’s Consumer Complaint Line at 1-877-382-4357, or go online to the Federal Trade Commission .
• Another thing to consider is learning how to take the burden of debt out of your life. This linked website will help you handle your families' finances better so that you can secure your financial future and reduce the stress caused in your life by money worries.

Additionally, once you notify creditors that you are being represented by a bankruptcy attorney, they are not permitted to contact you!