Home Buddies - Houston Credit Repair Coach for Investors and Homeowners

What to do about those Debt Collectors

You fell behind on some of your bills, and now as you try to manage this new financial obstacle, the last thing you want to deal with is the debt collectors.

There are certain rights that you have under the Fair Debt Collection Practices Act. Learn those rights and definitely use those rights! Debts covered under this law include auto loans, medical bills and credit card bills.

Rules that a debt collector must follow when contacting you about an unpaid bill:

1. No early morning or late night calls. A debt collector may not call you before 9 a.m. or after 8 p.m. unless you agree to the call.
2. No calls at work, once you request it. Debt collectors may not contact you at work if they know your employer disapproves of such calls.
3. No repeated or continuous calls. Debt collectors may not harass you by calling numerous times a day about an unpaid bill.
4. No verbal abuse. A debt collector may not use threatening or profane language when contacting you about a debt. A debt collector may not falsely imply that you have committed a crime by failing to pay a bill.
5. No informing friends, neighbors, co-workers, or family members about a debt. A debt collector may contact people that know you, but only to find out your address, your phone number, and where you work. In most cases, a debt collector may not tell anyone other than you or your attorney that you owe money.
6. No collecting on a debt larger than the consumer actually owes. A debt collector may not demand more money from you than you actually owe.
7. No dire threats. A debt collector may not threaten to have you arrested if you do not pay your debt. Debt collectors may not threaten to sue you, unless they actually intend to file a lawsuit.
8. A debt collector must send written notice of a debt. Within five days of contacting you, a debt collector must send you a written notice telling you the amount of money you owe and the name of the creditor. This notice also must explain what actions to take if you believe you do not owe the money.
9. A debt collector must honor a written request for no further contact. A debt collector must cease contact with you if you send a letter requesting that the debt collector do so. Send this letter within 30 days of receiving the written notice that details the debt being collected. If you believe you do not owe the money, you may state this in your letter. Be aware that a legitimate debt will not go away simply because the collection calls stop. You could still be sued by the debt collector or your original creditor for the amount that you owe.
10. The debt collector must verify all disputed debts. Debt collectors must verify any debt that you dispute in writing prior to renewing collection calls. Once a debt collector sends you proof of the debt, such as a copy of a bill for the amount owed, collections activities may resume.

Don’t let a debt collector intimidate you or harass you with unfair and illegal tactics. You can report the debt collector to your state attorney general office or the Federal Trade Commission (1-877-382-4357) if the debt collector breaks any of these rules.

Remember that states have their own collection laws as well, and a debt collector who violates the federal Fair Debt Collection Practices Act may also be violating state collection laws as well. Your state attorney general’s office will be able to inform of your state rights.

Good luck.

Barbara Partaka
Home Buddies