Debt collection complaints going up; what to do if you get a call
According to the FTC, consumer complaints about debt collection abuse were up significantly in 2007 (PDF link). This is hardly surprising, as debt has been plentiful and cheap lately. Complaints will almost certainly go up in 2008, since credit card borrowing is way up along with credit charge-offs.
If you are getting phone calls from a debt collector, you need to track the calls carefully. This collection communications log will help. You need a record of every phone call and letter you receive. If you can, record the phone calls, too.
Why record? Two reasons. First, so that you can prove any agreements you reach with the debt collector on the other end of the line. If you agree to settle your debt for 50% of the total, for example, you need to have a record of that agreement. Do not count on the debt collector to confirm the agreement in writing. If you cannot record, always send a written confirmation of the agreement. It is not quite as good, but it helps.
Second, if the debt collector does harass you, you need to protect your rights under the Fair Debt Collection Practices Act. You need to be able to prove they said and did what you heard them say or do. The only way to do this is careful note-taking or by recording your phone calls.
And, of course, keep every piece of paper related to the debt, including any old statements you may have and any letters to or from the debt collector. Good recordkeeping is crucial.
If you do experience harassment, call a consumer lawyer right away. The authors of this blog can help, if you live in Minnesota. Otherwise, look for a consumer lawyer in your area using the lawyer database at the National Association of Consumer Advocates. Remember, consumer lawyers should not charge for a consultation, and most will take your case on contingency so you do not have to pay unless they recover money for you. There is no reason not to call a lawyer.
[via Consumer Smarts]
Tags: consumer complaints, debt collectors, FTC, how to, tips
Filed under: Consumer Law & Policy, Coping With Credit & Debt
I certianly agree with all that was said in this post. However, recording the conversation is fine as longs as its disclosed. Also, I would never pay a settlement without it in writing via fax or by mail.
You do not need to disclose recording in every state. Follow the links above to find out whether you have to disclose in your state.
As with any agreement that has to do with money… get it in writing. Demand it. Honest, reputable collectors will not hesitate to get a document to you whether its fax, email or snail mail. But please don’t use this demand as a tactic to stall the collector you’re dealing with… and if you don’t want to deal with the calls be straight up with the collector and ask for the mailing address or fax number and give them the written request to stop calling. And if you believe you’re the victim of mistaken identity, please take a minute to rationally discuss the situation with the collector, that means staying on the phone long enough to verify bits of info like middle initial, last four of your social security number and your address. We didn’t just magically pull your phone number out of where ever just to annoy you — but it takes a minute or two from both parties to try to get the information straightened out…and don’t get me started on the folks out there that wait a couple weeks before they return a call to the collector yelling into the phone about how they’ve been harassed for the last two weeks… why didn’t you call back after the second or third call wrong call? Oh, and don’t leave a message screaming, “Don’t f****** call me!” and then hang up without identifying yourself or your phone number. Alas, without an ID, your request means nothing and I can’t help you.
This is funny!! I had a collection agency to call and as you they always say.”this call will be monitored/recorded and this is an attempt to collect a debt.” So my response was….”I must inform you that I, too, will be recording this conversation.” Immediately, they collector said..”we do not permit this!!” Of course, I politely told the rep. that if I can not record this call, we cannot talk…Thanks and goodby.”
Has anyone ever heard of this? They want to record your conversation, but do not want you to record their conversation. WOW!! Then again..this was a collector that had been calling and has just been getting down right “rude”, when tell them what I can afford to pay. Then when I tell them that I’m sorry but my financial situation has changed and I can pay. They scream and yell, get rude, etc…Then when I say I am about to end the conversation, they say well, I need the name and number of your attorney!! I have heard horror stories about collection agencies before, but I guess it took me having fincial difficulties to actually experience it.
I believe in paying my bills/debt, and am willing to work with any debt I owe. However, I just can’t pay what they want me to pay & they refuse to work with me. Any suggestions on this?
SUGGESTION? YOU HAVE A OBLIGATION OR A MINIMUN REQUIREMENT TO PAY? JUST PAY YOUR BILL OR YOU SHOULDNT HAVE TAKEN OUT THAT MONEY
I get calls for being just 2 weeks late. The calls start at 8:00 am in the morning and dont stop till about 8:55PM at night. Usually a colector form India woll call me 3 times a day non-stop everyday 7 days a week. These people are very polite but inside they are ruthless.
I definitely agree with above. I worked as a debt collector for years. I was more on the polite side when calling my consumers. I have seen and experienced fellow collectors threatening and degrading people who just couldn’t afford to pay!! It goes both ways, just pay your bills and you won’t experience the phone calls! When a collector tells you if you don’t pay this much today were going to place a lien on your house and all your assets, it is crap!! A legal judgement can not pe placed on you unless the client has the intentions of doing so, you will also receive a summons!!