The Debt Collection Business is Booming

When you don’t pay your bills, they don’t go away, they get worse. Your creditors, lenders, and even service providers pass your unpaid bills off to debt collectors who spend their days (and nights) trying to get you to pay. Debt collectors often are very aggressive in getting you to pay your debts. They have no problem with emptying your wallet as long as they get paid.

What many consumers don’t realize is that debt collectors have rules to follow when they’re trying to collect a debt from you. The federal law known as the Federal Debt Collection Practices Act provides the guidelines debt collectors are required to follow when they’re dealing with consumers.

Phone CallsDebt collectors can only call you from 8 in the morning until 9 at night based on your local time. They’re not allowed to harass you over the phone or call you repeatedly. If your employer doesn’t want you to receive calls from debt collectors at work, debt collectors can’t call you there. Debt collectors aren’t allowed to tell most other people about your debt. When they’re leaving a message for you, they can’t say anything that indicates they’re collecting a debt. You can stop a debt collector from calling you completely by sending them a letter that says you no longer wish to receive phone calls from them.

Collection TacticsDon’t be intimidated by debt collectors. It’s their job to intimidate you. It’s how they get paid. They may ask you questions about your income. They may quote information from your credit report about other bills you’re paying, but it’s illegal for debt collectors to make certain threats against you. For example, they can’t threaten to have you arrested, take your social security income, or to harm you or your property. Debt collectors aren’t allowed to use profanity or obscene language. They can’t make threats they don’t intend to follow through on just to scare you into paying.

Paying CollectionsBefore you pay a debt collection, make sure it’s your debt. Collectors have to validate your debt if you send a written request within the first 30 days of contact. Once you’ve confirmed it’s your debt, then use your budget to decide if and when you can afford to pay off the debt.

If you need assistance with managing your debts, click here.