Harassment Debt Collection
Regrettably debt collectors are often unethical. This has resulted in the government passing legislation to protect you from unethical debt collection tactics.
If the debt they are contacting you about is accurate then you should ask for debt validation. This should be done in writing.
Failure to ask for validation by mail will result in your validation being completely ignored. Additionally send your validation letter certified mail so you have proof that they received it.
If your debt is validated and it is within the statute of limitations of your state then you can negotiate payments. Limitations are often seven years from the date of delinquency.
When negotiating a settlement payment you should never pay the full amount. This is because your account has been bought from the original creditor for just pennies on the dollar. We suggest you start your settlement offer at 50% of the balance.
Collection agencies will accept a negotiated payment. This is because the collectors only way to recoup the money they spent on your debt is; by accepting a negotiated payment or selling the debt to another collector for a fraction of what they paid.
When you agree on a settlement payment you should get in writing from them that in exchange for your payment they will not report any derogatory information to the bureaus. If you do not do this you will stop the phone calls, but you will have a whole new set of problems because of a poor credit score.
Additionally if you just pay the agency they will report the collection as paid. This is still a very negative mark on your credit report. It will not improve your score by just paying.
Again, you must get in writing that negative information is not going to be posted to your report regarding the debt. Occasionally that negative information has already been reported you must get them to agree to remove it from your report.
If you do not do this you will not benefit from paying the collection. Also always pay with a paper check and no other form. Just so you know you can actually use the memo line to repeat the agreed upon contract, when the check is cashed you will have a binding contract.
If you are being harassed by an agency you are not alone. Also they only can legally take so many steps to collect.. The Fair Debt Collections Practices Act says that a debt collector can not;
- Threaten legal action
- Constant harassing calls
- Call your place of employment (once asked not to)
- Claim to be anyone they are not
- Threaten a lawsuit (unless they are taking legal action)
- Threaten to garnish wages or seize property (each state is specific about what is legal, often a court order is needed)
- Call your friends or family members and speak with them about your debt
- Only call between 8am and 9 pm
- Call you if you have notified them that you will not accept calls regarding this debt.
Unfortunately these regulations are often ignored. If you have been a victim you should report the agency to the FTC and the Attorney General. Many collection agencies have been fined because of violation of the FDCPA.
Also you can file a lawsuit against the collection agency and be awarded monetary damages. Make sure to keep all communications in writing in order to prove they are in violation.
If the debt they are contacting you about is accurate then you should ask for debt validation. This should be done in writing.
Failure to ask for validation by mail will result in your validation being completely ignored. Additionally send your validation letter certified mail so you have proof that they received it.
If your debt is validated and it is within the statute of limitations of your state then you can negotiate payments. Limitations are often seven years from the date of delinquency.
When negotiating a settlement payment you should never pay the full amount. This is because your account has been bought from the original creditor for just pennies on the dollar. We suggest you start your settlement offer at 50% of the balance.
Collection agencies will accept a negotiated payment. This is because the collectors only way to recoup the money they spent on your debt is; by accepting a negotiated payment or selling the debt to another collector for a fraction of what they paid.
When you agree on a settlement payment you should get in writing from them that in exchange for your payment they will not report any derogatory information to the bureaus. If you do not do this you will stop the phone calls, but you will have a whole new set of problems because of a poor credit score.
Additionally if you just pay the agency they will report the collection as paid. This is still a very negative mark on your credit report. It will not improve your score by just paying.
Again, you must get in writing that negative information is not going to be posted to your report regarding the debt. Occasionally that negative information has already been reported you must get them to agree to remove it from your report.
If you do not do this you will not benefit from paying the collection. Also always pay with a paper check and no other form. Just so you know you can actually use the memo line to repeat the agreed upon contract, when the check is cashed you will have a binding contract.
If you are being harassed by an agency you are not alone. Also they only can legally take so many steps to collect.. The Fair Debt Collections Practices Act says that a debt collector can not;
- Threaten legal action
- Constant harassing calls
- Call your place of employment (once asked not to)
- Claim to be anyone they are not
- Threaten a lawsuit (unless they are taking legal action)
- Threaten to garnish wages or seize property (each state is specific about what is legal, often a court order is needed)
- Call your friends or family members and speak with them about your debt
- Only call between 8am and 9 pm
- Call you if you have notified them that you will not accept calls regarding this debt.
Unfortunately these regulations are often ignored. If you have been a victim you should report the agency to the FTC and the Attorney General. Many collection agencies have been fined because of violation of the FDCPA.
Also you can file a lawsuit against the collection agency and be awarded monetary damages. Make sure to keep all communications in writing in order to prove they are in violation.
About the Author:
For a free credit consultation call 1-866-246-7311. Additionally you can get a free Credit Repair Letter used to dispute negative information or a free credit repair e-book by visiting us.
posted by Credit Counseling at
2:38 AM
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