Dealing with Debt collectors - faq
Collection agencies have been calling me - How can I get them to stop contacting me?
It's against federal law for a bill collector who works for a collection agency (as opposed to working in the collections department of the creditor itself) to call you at an unreasonable time. The law presumes that calls before 8 am or after 9 pm are unreasonable. But other hours may be unreasonable, too, such as daytime hours for a person who works nights. The federal Fair Debt Collection Practices Act (FDCPA, 15 U.S.C. § 1692 and following) bars collectors from calling you at work, harassing you, using abusive language, making false or misleading statements, adding unauthorized charges, and many other practices. Under the FDCPA, you can demand that the collection agency stop contacting you, except to tell you that collection efforts have ended or that the creditor or collection agency will sue you. You must put your request in writing.
The collections dept. of a local merchant is harassing me. Can I do anything about it?
Unfortunately, the federal Fair Debt Collection Practices Act (FDCPA) does not apply to the collection department of a creditor (it only applies to outside collection agencies). However, many states have laws on fair debt collection that do cover these collection departments. Check with your state consumer protection office to see if your state law applies to in-house collectors and to find out what types of collection practices it prohibits.
How should I deal with a debt collector who is not abusive?
Unless you're judgment-proof or truly plan to file for bankruptcy, most credit counselors believe that you shouldn't ignore your debt or try to hide from a debt collector. Generally, the longer you put off resolving the issue, the worse the situation and consequences will become. Whether you negotiate directly with the collector or obtain a lawyer's assistance, most counselors feel it is almost always best to talk with the collector and work out a mutually satisfactory arrangement.
A bill collector insisted that I wire the money I owe through Western Union. Am I required to do so?
No, and it could add more money to your debt if you did do it. Many collectors, especially when a debt is more than 90 days past due, will suggest several "urgency payment" options, including:
• Sending money by express or overnight mail. This will add at least $10 to your bill; a first-class stamp is fine.   • Wiring money through Western Union's Quick Collect or American Express's Moneygram. This is another $10 waste.   • Putting your payment on a credit card not charged to its maximum. You'll never get out of debt if you do this.
Can a collection agency add interest to my debt?
Yes. The FDCPA allows a collector to add interest if your original agreement calls for the addition of interest during collection proceedings or the addition of such interest is allowed under state law. Every state authorizes the collection of such interest.
A collection agency sued me and won. What collection measures can it now take against me?
Before obtaining a court judgment, a bill collector generally has only one way of getting paid: demanding payment. This is done with calls and letters. However, once the collector (or creditor) sues you and gets a judgment, the law allows it to take further steps to collect the debt. If you have a job, the collector may try to garnish up to 25% of your net wages. The collector may also try to seize bank or other deposit accounts you have. If you own real property, the collector may record a lien against it, which will have to be paid when you sell or refinance your property. Even if you're not currently working or have no property, the judgment won't disappear. Depending on the state, court judgments can last up to 20 years and, in many states, can be renewed for years beyond that.
The above information taken from: Findlaw.com
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