What Debt Collectors Won't Tell You About Their Phone Calls

What Debt Collectors Won't Tell You About Their Phone Calls

Debt collection ain’t easy. In a few companies, it may be called the distressed accounts or recovery department. Other companies and law firms are debt collection businesses, which is all they do. They generally have a little bit of "desperado" approach about their work. And, occasionally it's more than merely their mindset that is desperado. Although it may seem like they will say almost anything to make you pay, there are statements that violate the Fair Debt Collection Practices Act (FDCPA), which controls the conduct of much of the debt collection agency industry. Plus, there are some things they will not elucidate.

T’was the Night Before Christmas and They Still Call!

A criticism often heard by bankruptcy law firms from clients who are preparing to file for bankruptcy, and those that have files at collection agencies, is that debt collectors call non-stop, call-after-call-after-call demanding settlement. Even though the FDCPA restricts the collection calls between 8:00AM and 9:00PM, many collectors take advantage of the ignorance of the people they call, presuming they will not know much better.

While bankruptcy and its "automatic stay" should stop all the pestering phone calls, in addition to all other collection activity, it is possible to end the string of phone calls merely by sending a letter to the debt collector.

In the letter, identify the debt and you no longer want to be contacted on the phone concerning it. Right after receiving that correspondence, the collector is only permitted to contact you to inform you that they are submitting a lawsuit to collect your debt and/or that they'll no longer contact you by telephone. Keep in mind, this does not eradicate the debt, but it will stop the telephone from ringing.

WHO IS SUE?  AND WHY SHOULD I CALL HER?

The Federal Trade Commission (FTC) is in charge of monitoring debt collectors. In 2010, greater than a quarter of all complaints (over 140,000) received by the FTC concerned debt collection. And, if companies violate the FDCPA, you can do more than just complain. If your collection agency ignores the letter, (send it certified mail with return receipt, this way you've got proof when it was sent and signed for, and by whom), carefully document every time they phone. Your solution is to then sue and perhaps receive up to $1,000. You may think, "How can I sue, I'm in financial trouble? I can't afford an attorney."

In this case, it is possible. Besides the $1,000, the collector may have to pay your attorney fees. Paradoxically, should you win, the debt collector would precipitously be in your debt.

John Mackey