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Ask Susan Responses
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Collections: Collections & Your Rights |
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More Ask Susan |
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A couple days ago I received a letter from a collection agency regarding a debt against me. I called the number listed on the letter. Before
I could get any words out, the gentleman who claimed to be the owner demanded that I bring down a cashiers check immediately. When I explained to him that was not possible, he claimed he was going to take my car and was in route to my job with the sheriff. He took it one step further and
called my Office Manager and proceeded to tell him how much trouble the
company could get in by not complying. Is there anything I can do to
protective myself against these types of calls?
Is there any complaint that can be filed directly to the collection agency?
Any input you have would be appreciated.
-Elvida |
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Elvida,
It appears as if this collector may have violated the federal "Fair Debt Collection Practices Act" (FDCPA).
The first thing you need to do is get this collection agency to stop contacting you. You do that by writing to this collection agency demanding they not contact you anymore about this account. The FDCPA states, "If a consumer notifies a debt collector, in writing, that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except - (1) advise the consumer that the debt collector's further efforts are being terminated; (2) notify that specific remedies may be invoked; (3) that the debt collector or creditor intends to invoke a specified remedy."
This is quoting directly from the FDCPA. Make sure, in your letter, you mention you are aware of this federal law. Tell them you also will be filing a formal complaint with your state Attorney General's office and the Federal Trade Commission, Correspondence Branch, Washington, DC 20580. If you have questions about this Act, call the Federal Trade Commission's Consumer Response Center at 877-382-4357. Although the FTC cannot resolve individual problems, it can act against a company if it sees a pattern of possible law violations. Be sure to send your letter by certified mail, return receipt requested.
In your letter to this collection agency, also mention the FDCPA states, "a debt collector may not communicate, in connection with the collection of any debt, with any person other than the consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector." This is quoting directly from the law. This means the FDCPA prohibits a collector to communicate with any other third party, such as your employer, about your debt.
The Advice Team |
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A person recently told me that if you requested a creditor to stop calling you by law they would have to comply. My understanding is they cannot call you at work but they can call you at your home but not in a harassing way. What is correct and where can I find the actual facts? -Tom |
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Dear Tom,
Your source was correct. The Fair Debt Collection Practices Act (FDCPA) requires a collector to cease contact after they have received a letter of request from the debtor. The only time a creditor will contact you after receiving the letter is to inform you that they intend to take some specific action.
You are also correct. Collectors are prohibited from harassment, making false statements or engaging in unfair practices. You can read more about the Fair Debt Collection Practices act by visiting www.ftc.gov.
It is very important to understand that a cease in collection practices does not forgive the debt. Continued nonpayment may result in the collector or creditor taking legal action.
The Advice Team |
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I feel I have been harassed by a collection agency. Where could I get a complete copy of the Federal Fair Debt Collections Practices Act to see what my rights are? -Christina
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Christina,
For legal purposes this Act is referred to as Public Law 95-109-Sept. 20, 1977. Consumer Credit Protection Act. The first part of this law states, in Section 801. Short Title, "This title may be cited as the 'Fair Debt Collection Practices Act'".
If you have questions about this Act, call the Federal Trade Commission's Consumer Response Center at 877-382-4357. A complete text of the law is available on the Internet at: www.ftc.gov.
The Advice Team |
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I have a bill in the amount of $345 that is seriously past due. The company has threatened to file a suit against me if I do not pay in full by a certain date. The problem is that I will not have the money and the person contacted me at work said they could not accept the bill in two payments. I was told by another source that if I paid something (like $50) then they could not file because I was making some effort to pay. I would like to know from a professional so I do not make matters worse. I thank you in advance for your time. -Summer
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Summer,
After seeing your efforts to repay, the creditor probably wouldn’t proceed with legal action. On the other hand, it is possible that they refuse the payment entirely and proceed with the suit. I wouldn’t take the chance. I recommend calling the company and explaining how and when you plan to repay the debt. If they agree to accept your $50 payment, they will want to know when they can expect the rest. If they do not accept your repayment plan, I recommend making every effort to repay according to their terms.
By the way, I applaud your efforts to repay the debt.
The Advice Team
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I have a question regarding repayment of credit card debts. I have two credit cards which have been turned over to collection agencies. I know that the collection agencies will not work with CCCS or MMI but can money management services like yours work with the credit card companies themselves and get the collection agencies off my back? -Patricia |
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Patricia,
It is definitely worth your time to visit with a MMI counselor. MMI works with thousands of creditors, including collection agencies, to repay your debts. Once a plan is established and the creditor begins to see regular payments from you, collection calls and letters will stop. Best of all, you’ll be on your way to financial freedom! Call a counselor at 800-762-2271 today, they’re standing by.
The Advice Team
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Last year, I went to a conference and find out the hotel charged both my corporate American Express and my personal credit card. I disputed the transaction and never got any news after that. This week I got call from a collection agency asking me to pay. They told me if I pay now I won't have a bad record in my credit report. My credit report is perfect. I decided to pay the amount and call the hotel to resolve the problem.
My question is: Can I trust the collection agency not to report this as a negative mark with the credit bureaus?
-Stephanie |
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Stephanie,
Since you paid the debt, I see no reason for them to report anything further to the credit bureaus. You stated that your credit report is perfect and I highly recommend verifying that. Under the FACT Act, you can obtain free copies of your credit reports by visiting www.annualcreditreport.com
Good luck with your dispute,
The Advice Team
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