Now a days answering a call from an unknown number there are 1 or 2 people on the other end. It is either a bill collector or someone trying to sell you something on the other end. Which ever person is on the other end of the call, it is a call that we dread to take.
No one wants to owe a debt, let alone receive endless, annoying calls of the creditor attempting to collect payment. Knowing your rights as a consumer against debt collectors makes receiving the call from the first one more bearable. When answering these call remember to be very careful with giving out your personal or financial information.
Let's start by talking about the types of debts -
Oral Agreement - This is a verbal agreement between two parties that state the amount owed and when it will be paid back. This is a very uncommon way of doing business because it is hard to prove.
Written Contract - Written contracts are signed by both the borrower and the lender. It clearly outlines the purpose of the loan, how much interest, if any, is charged and when the payments are to be made. This agreement is easier to prove and most commonly used. A common example is a car loan/lease.
Promissory Notes - Promissory Notes are written, however, it is only signed by the borrower. There is less details. It does not tell you the terms of a loan nor when it is to be paid back. Most common example of this is a student loan and medical bills.
Open Ended Account - This is typically an revolving line of credit such as a credit card. The account remains open indefinitely as long as the payments are being made. The total amount of the loan can be carried over as long as the minimum monthly payment is made.
Now that we have discussed the type of debt, Let's talk about those pesky calls. When a debt collector calls, they must identify who they are the purpose of the call. They must tell you who the creditor is, the amount of money owed, how they got your name and the steps to take if they feel the debt is yours.
A Collector Can not:
Call before 8 AM or after 9PM
Harass you
Use abusive language or profanity
Threaten to arrest you or have you deported
Tell you that you owe a different amount than what is owed or collect interest fees, or other charges additional to the monies that is owed
Attempt to collect a debt that is non existent
Make you pay immediately
Send post cards or any other correspondence that makes your debt public knowledge
Contact you at work if you tell them that you can't accept phone calls at work
Lie or pretend to be someone else (i.e.- a lawyer or government official)
Can't discuss your debt with anyone other than your spouse
A Collector Can:
Call, email, text, send an email or letters to collect a debt that is owed.
If you don't think the debt is yours you can contact the collector in writing and ask for verification of the debt. It is suggested that you send this via certified mail or another way that verification can be received.
Money can be garnished from your wages only if the debt collector sues you and wins. If you are sued, NEVER ignore the lawsuit. Answer in writing even if the debt is not yours. Ignoring a lawsuit can result in you being sued by default. Always show up to court appearances to clear your name.
There are federal benefits that are generally exempt from garnishment, except to pay delinquent taxes, alimony, child support, or student loans. States have their own laws about which state benefits can be garnished.
Some of the benefits that are generally exempt from garnishment are:
Social Security benefits
Supplemental Security Income benefits
Veterans benefits
Federal student aid
Military annuities and survivors’ benefits
Benefits from the Office of Personnel Management
Railroad retirement benefits
Federal emergency disaster assistance
If a debt collector is not following the correct guidelines for collecting your debt, you can report them to:
The Federal Trade Commission - 1-888-225-5322
The Consumer Financial Protection Bureau - 1-855-411-2372
Your state attorney general. - contact information varies
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