Having debt hanging over your head is stressful enough. Debt collectors can make it even worse by constantly hounding you.
Did you know there are ways to get them off your back? There are measures under the Federal Debt Collection Protection Act to help you.
1. What To Do if Debt Collectors Resort to Harassment?
You have many protections under the FDCPA. Debt collectors can only call you at certain times. They also cannot call you while you’re working.
It is illegal for them to lie to you or threaten you with prison time. Debt collectors are not law enforcement officers. Debt is a civil issue and does not carry jail time in nearly all cases.
Sending a certified letter is the best solution when debt collectors resort to harassment. A certified letter is a Post Office service that gives a receipt that a letter is received. You should report any type of harassment to the Federal Trade Commission too.
Collection agencies cannot call third parties either. They cannot call your family or your boss. The only person they can call is your spouse in certain cases. They are still not allowed to harass them either. They must stop contacting you after this. If they violate this rule under the FDCPA you may be able to sue them.
The FDCPA also protects you against obscene language. A collector cannot curse at you or use threatening language. You can also sue if they use automated messages. This goes against federal regulations.
2. Avoid Ignoring the Collector
Ignoring debt collectors can damage your credit score. You should request something in writing. They will send you information about who the original creditor was and how much is owed.
This helps you make sure you’re dealing with a legitimate collector. It also gives you proof for future use. Written evidence protects you in case they try to claim another agreement.
3. Don’t Give Personal Details via Phone Calls
Some people might call you pretending to be a debt collector. You could mistakenly give them personal information. Avoid giving your birthday, social security number or other financial details.
You should not admit whether the debt is yours. There’s no obligation for you to give a stranger over the phone your personal details. Don’t pay the debt over the phone.
Ask for a callback number to verify they are a legitimate company. You should also ask their physical address and if they have a website. A real debt collection agency will have no problem giving this information.
4. Try To Negotiate Down
Wait for their validation letter to arrive. Many times debt collectors buy debt for pennies on the dollar. They are often willing to take a fraction of the debt for a quick payment.
Some collection agencies are also willing to agree to payment programs. It is more expensive in many cases to sue you to recover the debt.
It should be emphasized to never give them personal details. Do not give them your main credit card or checking account numbers. It is common for collectors to charge extra and call it a fee. Force them to send you their settlement offer in writing.
5. Put Your Life and Peace of Mind First
Living comes with certain priorities. Some of the most important ones are paying for your mortgages, rent and groceries. Debt collectors don’t have the power to garnish your wages or put you in jail.
Take your time to make the right decision for you and your loved one’s well-being. Let the debt collector prove everything. Wait for them to offer a settlement.
Legitimate debt collectors want things to be settled smoothly. They typically make a profit for getting payments much lower than the original amount owed.
There are professionals who specialize in helping you settle debts. Most small debts can be handled on your own but you may need your attorney’s assistance with larger debts. The important thing is to stay calm.
