Take fast action if a debt collector comes calling

Take fast action if a debt collector comes calling

Consumer advocates say that people facing a collection notification should talk to a lawyer. Some debt collectors are trying to collect payments on accounts that shouldn’t be in collection, such as debts discharged in bankruptcy or debts generally older than 71/2 years. Consumers can further harm their credit reports and credit scores by paying those debts without legal assistance.
But the National Association of Consumer Advocates says that consumers need to be aware of the following:

What types of debts are covered by the Fair Debt Collection Practices Act?

Personal, family and household debts, including money owed on a personal credit-card account, an auto loan, a medical bill and a mortgage.

How can I stop debt-collector contacts?

Send a letter by certified mail that says “you are hereby notified to cease and desist all further communication with me in regard to the referenced debt.” A collector can make further contact only to notify consumers that a lawsuit has been filed against them.

Can a debt collector contact anyone else about my debt?

They can contact a consumer’s attorney to discuss the debt. They can contact friends, relatives, neighbors and co-workers only to gather the consumer’s address, home phone number and place of employment.

What does the debt collector have to disclose about the debt?

Every collector must send a written “validation notice” explaining how much is owed within five days after the first contact. The notice must include the name of the creditor and how to dispute a questionable debt.

What happens if a debt is disputed?

Send a letter within 30 days of the validation notice asking for verification of the debt.

Can a debt collector garnish bank accounts or wages?

Debt collectors can sue to collect an unpaid debt. If they win, the court will enter a judgment against the consumer allowing the collector to retrieve the balance through bank accounts or wage garnishment. But they can’t garnish several federal benefits, including Social Security disbursements.

What if a debt collector is suspected of breaking the law?

The law allows consumers to sue a collector in a state or federal court within a year of the violation.

What should consumers do if sued by a debt collector?

Respond to the lawsuit either personally or through a lawyer, by the date specified in the court papers to preserve your rights.
For more information:
www.naca.net/issues/debt-collection-abuse