Can you stop debt collectors ? . . .You better know you can

You can stop debt collectors under law provided by Fair Debt Collection Practices Act. If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "debtor."

 If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a "debt collector." You should know that in either situation, Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Of course, law does not erase any legitimate debt you owe.

What debts are covered?

Personal, family, and household debts are covered under Act. This includes money owed for purchase of an automobile, for medical care, or for charge accounts.

Who is a debt collector?

A debt collector is any person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis.

How may a debt collector contact you?

A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if collector knows that your employer disapproves of such contacts.

Can you stop a debt collector from contacting you?

You can stop a debt collector from contacting you by writing a letter to collector telling them to stop. Once collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that debt collector or creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make debt go away if you actually owe it. You could still be sued by debt collector or your original creditor.

May a debt collector contact anyone else about your debt?

If you have an attorney, debt collector must contact attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, collector may not tell anyone other than you and your attorney that you owe money.

What must debt collector tell you about debt?

Within five days after you are first contacted, collector must send you a written notice telling you amount of money you owe; name of creditor to whom you owe money; and what action to take if you believe you do not owe money.

May a debt collector continue to contact you if you believe you do not owe money?

A collector may not contact you if, within 30 days after you receive written notice, you send collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of debt, such as a copy of a bill for amount owed.

What types of debt collection practices are prohibited?

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

For example, debt collectors may not:

• use threats of violence or harm;
• publish a list of consumers who refuse to pay their debts (except to a credit bureau);
• use obscene or profane language; or
• repeatedly use telephone to annoy someone.

So tempting 0% financing for a year, no payment for 3 months, $10,000 credit line, and most dangerous, YOU ARE APPROVED!

We have all had a credit card in our possession at one time or another. Whether it is a department store, or gas card, or most dangerous of all MasterCard or Visa! Good at most places in world.

Let’s talk about MC/Visa cards for a moment. These you can use everywhere, even at McDonalds. These cards tempt you with there low rates, big credit lines, and ease of applying for one of these.

Now why do I call credit cards a disease? Well you begin paying for that dinner out on town, next thing you are doing is picking up a few items at your local Wal-Mart or other discount store.

You get bill in mail and you pay it off. Next month you put a little bit more on it, when bill comes you pay it in full. Well this goes on for a few months, and you think, I am in control of this situation.

WRONG! Before you know it you are charging bigger ticket items, then you have that little problem with car, and you use your MC/Visa to pay for it. The month is coming to an end and you are running low on cash.

Well you figure I just need a few groceries, so I will just put them on ole charge card. Well bill for that month arrives and your hair stands up on end because balance is a lot higher than you thought.

What now, I don’t have money to pay it in full, so I will pay half of it. The cycle of spending on credit card goes again for next month. Sure you try to keep it down, but when bill comes again you have sticker shock!