Article 105 Debt Collectors, What To Do When They Come Calling - Part 1
Debt collectors, how do you deal with them? It is not easy dealing with them for most find them very assertive. But then that's the job they have to do. Time has not been good to them either despite the fact their job is in demand these days. They do not find it easy to squeeze out payments when money is tight for everyone.
Debt collectors topped the list of consumer complaints. The National Association of Attorneys has reported that. So does the Better Business Bureau. To counteract this, make sure you know of the Fair Debt Collection Practices Act. This dictates when the debt collectors can call and the manner they can call you.
The Fair Debt Collection Practices Act specifically forbids anyone collecting debt to call before 8 am and after 9 pm. They cannot oppress, harass or abuse any person regarding the collection of debt either. They cannot also threaten any person. Neither are they allowed to use violence or obscene language.
It is good to remember that the consumers do not have to pay debts if the statute of limitation has expired. It is good to check especially if the debt is about seven years old because that is when the statute of limitation usually expires. The clock for the expiration starts as soon as the last payment is made. Any partial payment after this could reactivate the debt and the clock starts all over again.
Those collecting debts are allowed to ask the relatives or neighbors for help in locating the people who owe a debt but they cannot say anything about the debt to these people. They can also call the debtors' workplace unless they are specifically told that the employers do not allow this in which case they have to desist immediately.
There are some tips to follow when negotiating with debt collectors. They are now saying that the ones collecting debt are more ready to deal so knowing the tips is helpful. When you have some money to pay for the debt, you may be able to get a deal. Some have been able to settle for ten cents on the dollar.
The trouble is that when the calls start coming, people become afraid, angry, embarrassed or are in denial and so may say the wrong things or they may even ignore the calls completely. This could lead to harassment and sometimes to lawsuit.
To protect yourself and to avoid any traps that may be waiting for you, keep cool. There are things you can do so you can turn the scene around. If you think the caller is abusive, tape the conversation; you might be able to use it later. Check the rules before you do this because some states regulate this.
This is getting too long and there are more tips in Part 2 but meantime, keep a record of everything and keep it for a long time because there may be others who will call to try to collect the same debt. Why? It is because debts could be resold many times. Then if a debt verification is requested, the collection firm may give this back to the original holder of the account and this may be resold to other debt collectors.