Credit Card Debt Solutions

Credit Card Debt and Debt Collectors

June 8th, 2008 Subscribe To Our Feed

As more and more people are finding themselves in a truckload of debt that they cannot cover, more and more are going through the unpleasant experience of dealing with debt collectors.

You may already be screening your calls and feel your blood pressure rising as you realize it’s them – again, not to mention how embarrassing it can be when they try and find you at your place of employment.

Who Are the Debt Collectors

Debt collectors can be employed by the companies themselves, people on contract to the companies or people employed by an actual collection agency. For many, they are paid on a commission basis, based on the amounts they collect. So while not every debt collector is unsympathetic and berating, many come off as aggressive as they are determined to collect their fees. So, it’s quite understandable while those who are already in a desperate state to fear encounters with such individuals.

Allowable Collector Actions

Debt collectors are allowed to contact you by in person, by mail, by telegram, by fax and by phone; at home or at work - unless they know your employer would disapprove. They may also not contact you before 8 a.m. or after 9 p.m. unless you have agreed to the contact at that time.

If you have an attorney they must contact him or her. They may then contact other people to find out your telephone number, work place or address, but in most cases they are only allowed to contact them once and they are not allowed to inform them that you owe money.

Stop Contact Request

Whether or not you actually owe a debt you can write a letter to the collector telling them to stop contact. From then, they may contact you only once to inform you that they will make no further contact or to tell you what action may be taken against you.

Stopping contact will not clear the debt. If you do not believe you owe the debt make that clear in your letter.

Your Rights

The FTC (Federal Trade Commission) has a Fair Debt Collection policy to protect consumers. As in anything knowing your rights is essential. Most collectors function on the assumption that you don’t know the law, so making it evident that you do will put off even the most determined collectors.

What Collectors Can’t Do

Debt collectors are NOT allowed to harass, abuse or oppress you or other individuals on your behalf. This includes the use of obscene language, threats of violence or repeated calling in an effort to annoy.

They cannot imply legal action, including seizing property or garnishing wages unless they are legally allowed and intend to do so.

They are not allowed to misrepresent themselves as government agents, attorneys or representing a credit bureau if they are not. They cannot imply they are sending legal documents if they aren’t or that you’ve committed a crime, if you haven’t.

You can find out more about your rights from the FTC. If you want to report an agent you can do so by contacting the FTC or your Attorney General.

Be Proactive

If you find yourself in the position of being late on payments, contact the credit card companies before your account hits the collection department to start working out a plan. If you however are already being contacted by debt collectors, educate yourself so that you can hold your own when in discussions.