Sleazy Debt-Collector Tactics

It may or may not be your debt, but it is your problem. Collection agencies are bulling consumers.

Bulling the innocent:
Regulators say collection agencies increasingly are harassing and badgering consumers into paying money they don’t owe. More and more people complain to the Federal Trade Commission about debt collectors than about any other industry, and consumer attorneys are saying: a booming trade in old, poorly documented debts are fueling the problem.
The FTC charged that as much as 80% of the money collected by large Credit Agencies came “From consumers who never owed the original debt in the first place”

Collectors cross the line:
Debt collectors protest that most firms are ethical, law-abiding and provide a needed service that helps reduce borrowing costs for all consumers. BUT the new economics of debt collection can encourage belligerent campaigns, including dogges pursuits of innocent consumers.
Because old liabilities cost collectors as little as .25 cents for each $100 in face value, companies can make a profit if they can get debtors to repay even a tiny fraction. Along the way, some collectors realized they also could squeeze money from people who didn’t even owe it.
Some people pay because their finances are so disorganized they don’t realize the debt isn’t theirs. Others are coerced into paying by illegal threats of lawsuits or ruined credit.

Why are they allowed to do this?
Collectors are nothing if not persistent! Some consumers endure collection attempts from a string of different companies as one collector sells its uncollectible debt to another. “Why are they allowed to do this?” “What can we do to stop these scoundrels?” Advise an attorney who specializes in Debt Collection. Many consumers have no idea of their rights in such situations.

Your rights and how to use them:
Under the “Fair Debt Collection Practices Act”, collectors are supposed to advise consumers that they have a right to dispute the debt, but that if consumers don’t do so promptly—and in writing—the collector can assume after 30 days that the debt is valid. Once collectors are notified that they’ve contacted the wrong party or that the consumer denies owing the debt, the companies are supposed to provide proof of the debt’s validity. If they can’t supply the proof, collectors are required by law to cease. Of course, some collectors simply ignore laws designed to protect consumers. But debt experts say your chances of getting collectors to back off improve when you know your rights and assert them forcefully.



If you’re contacted about a debt you don’t owe:

*Know your rights
*Get name of collector, it’s address and telephone number
*Send a certified letter, return receipt requested, make it clear they have contacted the wrong party.
*Contact regulators, typically State’s Attorney general office.
*Monitor your credit report
*Consider a law suit, contact “National Association of Consumer Advocates.


TIPS FOR DEALING WITH A DEBT COLLECTOR


*Know how the collection process works:
*Know your rights
*Ask questions and learn specifics
*Assert your privacy
*Start and keep a file
*Put everything in writing
*Clarify payments
*Pay proper party
*Don’t be coerced
*Examine balances, interest charges and other fees charged

*Military members contact local Judge Advocate General’s office: http://www.tradoc.army.mil/opja/la/sscra.htm
*Don’t be fooled
*Seek help, but be careful
*Seek legal help

A debt Collector can contact you by phone, but cannot call you before 8 a.m. and after 9 p.m. Use obscene language, make negative comments about your character, or make religious or ethnic slurs.

A debt collector cannot, claim to be an attorney or government employee when it is not, send you documents that look like legal papers when they are not. State that forms sent to you are not legal documents when they are, say that you committed a crime.

A debt collector cannot, threaten you with violence, say you will be arrested if you don’t pay, is not truthful about money owing, or garnish your wages or sell your property if it is not legal to do that.

A debt collector cannot, tell others you owe a debt or discuss details of the account to a neighbor, friend, employer, spouse.


Websites and address to keep handy

Ca. Attorney General’s publication on “collection agencies”
www.caag.state.ca.us/conusmers/general/collect.htm

Federal Law:
Fair Debt Collection Practices Act
www.ftc.gov/os/statutues/fdcpa/fdcpact.htm

Fair Credit Reporting Act
www.ftc.gov./os/statutes/fcra.htm

Fair Credit Billing Act
www.ftc.statutes/fcb/fcb/pdf

Fair Debt Practices
www.lefinfo.ca.gov

Soldiers and Sailors
http://www-tradoc.army.mil/opja/la/sscra.htm

Ca. Attorney General
Public Inquiry Unit
P.o. Box 944255
Sacramento CA 94244-2550
Tel: 800-952-5525 & 916-322-3360
Web: www.ag.ca.gov/consumers/mailform.htm
www.dca.ca.gov.legal/dc_1.pdf
www.dca.ca.gov/legal/dc_2.pdf

State Attorneys General Offices
www.naag.org

Consumer Protection Office
www.consumeration.gov/state.shtml

American Collectors Association
P.o. Box 39106
Minneapolis, MN 55439-0106
Tel: 612-926-6547
Fax: 612-926-1624
e-mail aca@collector.com
web: www.collector.com

Complaints about members:
www.accainternational.org/intcontent.aspx click on contact ACA

California Association of Coolectors
P.o. Box 254490
Sacramento Ca 95865-4490
Tel: 916-929-2125
Tel: 800-316-2262
Wed: http://www.calcollectors.net

You don't need to take this lying down! Another thing you can do is go to your local "Radio Shack" and buy a tape recording device and record your conversations when the collections agencies call. You must though inform them that they are being tape recorded, if they don't wish to be recorded then they can hang-up, most won't care and continue to talk and incrimminate themselves! If you have the proof they are being abusive or threatening then you have your proof. You can go to any of the above agencies to file your complaint and inform them you have them on tape and they will listen. You can probably have that debt wiped out! The original agency that has that account will not want you to sue and will want to make a settlement!