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Debt Management Law News

April 24, 2009

Harassed By Credit Card Debt Collectors?

So perhaps the recession/depression has hit too close to home and you have missed a couple of payments on the credit cards.

Now the calls start coming. Debt collectors. They are willing to do or say anything in order to make you pay your bills.

It does not matter if you have good intentions, have a sick family member or need a place to live and a way to feed your family, some are unrelenting and will not stop no matter how rational you try to get with them.

For example, today, I had a debt collector call my place of business. Not for me nor for anyone who has ever worked for me. When the autodial recording was done, A woman came on the line and asked if she could speak to so and so. I replied"You could if you had called the correct number." I didn't have a tone, I didn't raise my voice, but she responded with "well perhaps you shouldn't be so rude."

I was rude for telling her she could speak to the person she was calling for if she dialed the correct number? This was a place of business, and this debt collection company had called before, so I asked to have our number removed from the list. We shall see what happens.

If a debt collector calls you and you do not want to speak with them on the phone, simply ask them not to call you. Never give them your phone at work or cell number. Never allow them to call you at work. Always tell them to communicate via mail with the address they have on file. Never pay a debt without seeing it in writing first. It may not even be yours.

So what do you do if they threaten to sue you or garnish your wages? Well they could but most often they prefer to settle, so don't worry about the threats for now. A judge may be sympathetic if you can prove that you are in good faith attempting to repay the debt, so keep good records.

Do your best to negotiate a payment amount you can afford and always get it in writing that they are willing to accept that amount.

Never give them access to your bank accounts or your credit card information. Always pay with a money order.

If they use verbal abuse, yelling, calling names or making threats of arrest or violence, report them immediately to the police, BBB, and the Federal Trade Commission (FTC)

According to the FTC web site
You have recourse if I think a debt collector has violated the law

You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can’t prove that you suffered actual damages. You also can be reimbursed for your attorney’s fees and court costs. A group of people also may sue a debt collector as part of a class action lawsuit and recover money for damages up to $500,000, or one percent of the collector’s net worth, whichever amount is lower. Even if a debt collector violates the FDCPA in trying to collect a debt, the debt does not go away if you owe it.

What practices are off limits for debt collectors?

Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:

* use threats of violence or harm;
* publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
* use obscene or profane language; or
* repeatedly use the phone to annoy someone.

False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:

* falsely claim that they are attorneys or government representatives;
* falsely claim that you have committed a crime;
* falsely represent that they operate or work for a credit reporting company;
* misrepresent the amount you owe;
* indicate that papers they send you are legal forms if they aren’t; or
* indicate that papers they send to you aren’t legal forms if they are.

Debt collectors also are prohibited from saying that:

* you will be arrested if you don’t pay your debt;
* they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
* legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.

Debt collectors may not:

* give false credit information about you to anyone, including a credit reporting company;
* send you anything that looks like an official document from a court or government agency if it isn’t; or
* use a false company name.

Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:

* try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;
* deposit a post-dated check early;
* take or threaten to take your property unless it can be done legally; or
* contact you by postcard.

Remember, just because you are behind on some of your payments, doesn't mean you should be abused. Please see the FTC for more information on Fair Debt Collection Practices and by all means always pay the bills that are most important. Food, shelter, lights, water and vehicle. The rest can wait until you get your finances back under control.

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242

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