Nowadays, if you owe past due payments on credit cards, loans, mortgages or to any other lender, that can mean that your day starts with phone calls, is filled with telephone calls and ends with telephone calls.
These calls might not be from your family members and friends, but from collection agencies whose job it is to make sure you pay back any monies you borrowed/spent.
Although collection agencies are supposed to be above-board and ethical in their collection practices, there are many of them who do not follow the rules.
WHAT ARE THE RULES? What are the rules? Well, the Fair Debt Collections Practices Act (FDCPA) is a set of rules governing how a bill collector can attempt to get you to pay a past debt.
The FDCPA was made to help protect consumers who were bring harassed and mishandled by collection agencies.
This well needed act forbids certain conduct and collection tactics used by come agencies and provides for a way for consumers to punish those agencies who don't follow the law.
According to the act, any outside collection agency (not an in-store or in-company agency of your original creditor) can not: a) telephone you at home in a harassing way (calling numerous times throughout the day) b) threaten to harm you or threaten you with criminal charges c) call your home before 8 a.
m.
or after 9 p.
m.
d) call you directly if they know you are represented by an attorney e) call your neighbors and reveal that you owe a debt f) give you a false amount of money that they claim is owed to them MAKE SURE THE DEBT IS YOURS Just because a bill collector contacts you doesn't always mean you owe the debt.
If you receive a notice about a debt you don't recognize, inform the bill collector IMMEDIATELY by mail.
The notice they send to you informing you about the debt should contain information telling you how to notify them if you feel you do not owe the monies claimed.
Be sure to inform them if you believe the debt is not yours.
Many people have been notified when a debt of someone with the same name is sent to them for collection.
COLLECTION AGENCIES KNOW YOUR BACKGROUND A collection agency will do background research on you well before they call you so be prepared for them to know all about you and your financial life.
They may already know where you work, how much money you earn, what type of neighborhood you live in, as well as them having a copy of your credit report.
Your credit report can tell them if you are currently paying any other debts (they can use this to try to make you feel bad for not paying the debt they are attempting to collect).
They might see if you have any judgments pending against you and use this to threaten you by saying they can get another judgment against you, which could be a hassle for you to deal with.
KNOW YOUR RIGHTS AND USE THEM It's very important that you know your rights when dealing with collection agencies or you can be taken advantage of in numerous way.
For instance, you can request that a collection agency contact you by mail instead of phoning you.
Some say you should NEVER speak to a collection agency over the telephone since you have no proof of what was said .
Collection agencies have been known to falsify payment agreements and negotiations so having a record of any dealings with them is important.
If you only deal with them in writing, that makes it much easier for you to prove what has happened between you and the agency.
Remember, a collection agency's main goal is to get you to pay them money.
There are many reputable agencies around, but there are also many who use underhanded and unethical tactics to get the money they seek.
Take a few minutes to look over the Fair Debt Collections Practices Act so you'll know if you're being treated properly.
Just because you owe a debt doesn't' mean you should be mistreated or harassed.
If you are dealing with collection agencies, being aware of the law can help you get through a time of debt and come out on top in a good way.