Don’t Let Creditors Abuse You!
A very large part of our economy runs on credit, the ability to buy and sell with the expectation that money will be paid according to the terms agreed upon at the time of the sale. Unfortunately, circumstances often make it impossible for the buyer to make the payments as agreed. In some circumstances the creditors change the terms by increasing the interest rate charged resulting in extremely high payments which are almost entirely credited to interest payments. The buyer is often burdened with a lifetime of crippling debt. When the buyer cannot pay the amount demanded by the creditor, creditors will often resort to abusive, deceptive and unfair collection practices.
A creditor, who is not being paid according to the contract, will often employ the services of collection agents (those who regularly collect debts for others) who, for a percentage of the amount collected, will pursue a campaign of frequent contacts with the debtor to get payment. Some of the practices frequently employed are illegal and the debtor has options for stopping the illegal practices.
The options available to the debtor will depend upon whether the person contacting you can be identified as a collection agent because some of the laws apply only to collection agents and not to the original creditor. The Fair Debt Collection Practices Act (FDCPA) generally applies to collection agencies and lawyers who regularly collect debts for clients, but may cover creditors and others in particular circumstance.
“We were very pleased with the services of Walter. We felt he had a genuine interest in our well being.” Bill, Client
You can stop a debt collector from contacting you by notifying the debt collector in writing that you do not want the creditor to contact you again. You might want to just stop the telephone calls and request that the debt collector only contact you by mail. If you hire an attorney you can give the debt collector the name and phone number of your attorney and instruct the debt collector to stop contacting you and to only contact your attorney. You can also request that your attorney notify the creditors or debt collectors on your behalf and request that the creditors only contact your attorney.
A debt collector may not use tactics which harass, oppress, or abuse any person. Below are some examples of prohibited collection tactics:
- Use threats of violence to harm you, your property, or reputation;
- Use obscene or profane language;
- Repeatedly use the telephone to annoy you;
- Make you accept collect calls or pay for telegrams; or
- Publish a shame list or other roster of individuals who allegedly refuse to pay their debts. However, the debt collector can still report your non-payment to one or more credit bureaus.
A debt collector may not use false, deceptive, or misleading statements when trying to collect a debt. Below are some examples of tactics a debt collector may not use:
- Misrepresent the amount of the debt;
- Falsely imply that the debt collector is a lawyer;
- Tell you that your property or wages will be seized, garnished, attached or sold, unless the debt collector intends to do so and it is legal; or
- Threaten any action unless the action is lawful and the debt collector (or creditor) intends to take that action.
A debt collector may not use unfair means to collect a debt, such as:
- Accepting a check postdated by more than five days;
- Collecting any amount as interest or a fee, charge, or expense unless authorized by agreement or law;
- Taking or threatening to take non-judicial action to seize property exempt by law from legal process; or
- Bringing a lawsuit in an inconvenient court or location.
Many debt collectors engage in these and other illegal tactics even though they know they are breaking the law. These debt collectors consider the risk of getting sued as a cost of doing business. THE ONLY SURE FIRE WAY TO STOP CREDITOR AND DEBT COLLECTION ACTIVITY IS TO FILE BANKRUPTCY.