How to deal with debt collectors. Naturally do not get into debt and be a big boy and pay what you borrow, but if you get into a bad situation, here are the steps about what you can do.
This information was taken from Poster Tossed_Salad_Man from the SomethingAwful.com forums. I did not write nor compile this information and all credit is due to him.
First of all as far as credit is concerned a debt repayment/ consolidation plan looks just as bad as a bankruptcy to creditors. Sure it shows you are responsible and repaid them, but it also shows that your creditors lost a bunch of interest.
Long ago I did Genus, and once I found out it was looked on unfavorably, I canceled that program and and contacted the creditors and made payment arrangements. That way the credit line in your reports shows pays(ed) as agreed, versus Debt management program/ or some similar entry.
Now as for harassment.
The first thing you need to do is figure out if you are in a one party state. That means you can record a phone call conversation. As long as one of the parties involved (you) knows it's being recorded it's A OK.
If you are in a one party state get a phone recording device ASAP. (Oregon is one party)
Some can work with wireless/cell phones, but the cheapest ones are for regular land line phones.
You need to start recording these calls and fast.
If you are in a two party state record anyways but ask "mind if I record this call?" if they say no, then tell them you refuse to proceed without recording the call for your records.
NOW.
You should have a letter, or be getting a letter, it should say blah blah blah we are collecting on behalf of original creditor. OC.
Make a business letter and in it notate their account number and the account number in which they are trying to collect.
Then say something like
In regards to your letter dated (date) I wish to inform you that I dispute this alleged debt in its entirety. Also it is inconvenient for me to receive phone calls regarding this matter at any time. Any further communication should be done through the postal service. Thank you.
Now what this does is buy you some time. The collection agency now has to validate the debt. During this time they can not contact you except to give you actual validation of the debt. ANY ATTEMPT at collection is a violation of the FDCPA.
You need to start looking up FDCPA, FCRA, and your states general statutes pertaining to debt collections/debt collectors.
I'll post some links when I get to my computer with all my collections goodies on it.
Basically whether the debt is valid or not, this tilts the field back in your favor as they collection agency will almost always attempt to collect, break the law and many times can wind up paying you.
However to go after these violations you must be ready to file suit in federal court. You file Pro Se, and again as soon as I am near my PC with the goods I'll post links to places and stuff to get you started.
But there is no reason to be afraid of these people. They prey on the fact that most people do not know their rights, and will roll over easily. A learned person lets the collectors do their jobs like they normally do, then drops the hammer on them. Sounds like you could have easily had upwards of 5 violations at $1000 a pop.
I've not had to appear before a judge yet. Once the collections agency realizes the amount of evidence I have against them, they know they have no defense because they themselves should know the very law under which they operate, and showing up in court saying "uh, your honor we didn't know that we were breaking the law" would pretty much guarantee maximum payment.
dispute letter
first name last name
address
address2
date
collection agency.
address
address2
Certified Mail Receipt No.: xxxx xxxx xxxx xxxx xxxx
Re: Creditor: original creditor
Account Number: OC acct number
Internal Account Number: CA account number
To whom it may concern,
In regards to your letter dated date, I dispute this alleged debt in its entirety. Also, all phone calls, at any time and/or any place, are inconvenient. Please communicate by U.S. Mail, only.
Sincerely,
name
***********************
This letter needs to be sent certified return receipt mail (crrm)
This shows when you sent the letter and when the collection aganecy recieved the letter.
The date they receive the letter is the magic date.
ANY phone calls or letters in regards to collection attempts are violations of the FDCPA.
Once they receive the letter requesting validation ALL collection activities must cease.
This letter also notifies them that phone calls are inconvenient, so when they call back they are accruing two violations, further collection attempt and calling when it is KNOWN to be inconvenient.
When you request validation of a debt, you pretty much end things right there most collection agencies will send a letter saying "we cant find what you asked for and are sending it back to the original creditor".
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http://www.ftc.gov/bcp/edu/pubs/con...redit/cre27.pdf fdcpa
http://www.lawdog.com/ -VERY HELPFUL
http://www.fair-debt-collection.com...rnishments.html about what can and can not be garnished
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http://www.debtorboards.com
look for flyingifr and Rottweiler. This forum is heavily visited by both debtors and creditors and collectors.
I learned all I know from that site and those two posters.
To get your violation money you must be willing to file in federal court. Generally a copy of a suit and a list of your evidence is enough to get a settlement.
Also if the debt is sub 5000 dollars it is very doubtful they will sue. What happens is you wear them out, making them chase their tails and they eventually give up. If you are lucky, and it sounds like you have a scummy collection agency contacting you, you could make a huge sum of money.
It's not a question of you owing the debt, alleged or not. It becomes a matter of the collection agency staying within the law, and having them rack up enough violations that if/when it goes to court they will owe YOU more than you owe them.
Hope this helps.