It seems as if debt collectors can get away with about anything.

The Fair Debt Collection Practices Act is supposed to protect consumers, yet few people know anything about it.

Most collectors are trained professionals who will:

• call you several times a day
• call at early, late or even at work
• berate you for the debt you owe
• make false statements about their intention to bring legal action
• call family or neighbors about your situation

And these are just a few of the unlawful, yes, UNLAWFUL tactics used by most collection agents.

The Fair Debt Collection Practices Act (FDCPA) spells out what a collector may or may not do, and even though you do have rights and it may be possible to bring a lawsuit against the collector for violating those rights, most people just don't have the time or money to proceed.

So, what can you do? Here's some tips that will help:

1.  Stopping collection calls at you home

The FDCPA states that if a collector receives a letter requesting that all calls stop concerning the collection of your account, they must STOP!

To get more information on how or what to do, click here.

2.  Stopping collection calls work

Not only is getting collection calls at your place of employment embarrassing, it may also get you in real trouble with the boss!

You may be able to stop the calls at work by simply telling the agent that your employer does not permit calls to the employees.

Although this may work, you should also state in your letter (above) that this request also includes your place of employment.

HOWEVER, if you have not receive calls at work yet, then don't request it in your letter (above) as it tells the agency that you hav a job!  You don't really want them to know that for as long as possible.

3.  Most of the letters you receive from a collector state something like:

"unless you dispute the validity of this debt in the next 30 days, the debt will be deemed valid".

Even if you think the debt is valid, it doesn't hurt to request validation.

WHY?  Because the FDCPA states that if you send a written request for validation, the collector must cease all contact until the debt is validated by a statement or some other form of validation.

If you owd much more that you can repay, it may be time to seek professional help. 

Programs such as Debt Management, Debt Settlement, or even Bankruptcy may provide you with a way to finally put an end to the harassment from collectors and get completely out of debt once for all.

For a FREE, Financial Analysis, click here.

The phone rings again and the debt collector tells you that unless you send money now...

The debt collection industry is a collection of professionals at one end and low-class, say anything-to-make-a buck low lifes at the other.

We get calls everyday from clients who are almost in tears after receiving a bad call from a collector.

Usually, the collector will tell you how much you owe and how its your responsibility to pay this bill, regardless of how hard things are.

Problem is, the collector usually goes beyond what the Fair Debt Collection Practice Act (FDCPA) states what they can and cannot do.

DID YOU KNOW???

Harassment is the single most prohibitive action. 

They cannot harass or use abusive language to you or any third party that may be helping you.

That a debt collector may not:

• Use threats of violence
• Publish a list of names of people who refuse to pay their debts
• Use obscene or profane language
• Make false statements, such as:
• You will be arrested if you don’t pay
• That they will seize, garnish, attach or sell your property without legal authority
• Threaten to take legal action if they don’t intend to do so 
• A creditor is not permitted to call you before 8am or after 9am
• Cannot contact you at work after you have requested them not to by mail or fax

If you feel the collector has violated your rights, you may contact your state Attorney General’s office (www.naag.org) and the Federal Trade Commission (www.ftc.gov).

To learn more about debt collection practices and your rights under the law, visit www.ftc.gov/credit and MyMoney.gov .

You have several alternatives to take care of your debt problem. Don't be intimidated by a collector. 

If you need help, you should contact a professional debt management company.

Is the anything you can do to stop wage garnishment?

You pick up your paycheck and notice that money has been withheld due to a wage garnishment.

When a creditor files a claim on an unpaid account, a summons will be delivered to you.

If you ignore it, in about 30 days, a default judgment will be awarded the creditor/plaintiff.

Again, if you do nothing about it, then the creditor may decide to apply for a writ of garnishment.  This is presented to your employer, and depending on which state you live in, you will most likely have 25% of your net check sent to the creditor. 

Your employer has no choice but to honor the writ of garnishment.

SO NOW WHAT?  You have a few options:

If you have any access to a lump sum of about 40%-50% of the total due, then you can contact the original collection agency or attorney for the plaintiff and negotiate a lump sum settlement.

If you don't have a lump sum, then your only option is to present a plan to repay your debt instead of them garnishing your wages. 

Example: 

• Let's say you owe $5,000.
• Your take-home wage averages about $1300, every two weeks.

The wage garnishment allows the plaintiff to garnish 25% or $325 every pay check or $650/month! 

For most people, this would cause them to be unable to pay the mortgage or rent, utilities, food, etc. and ultimately, your only recourse would be to file for bankruptcy protection. 

Before you contact the attorney for the plaintiff or the creditor directly, you need to have a couple of things ready:

A complete basic budget showing all income and outgo each month. Make sure to list everything and be honest.  Let's say you have $100 left over each month (if you're lucky).

It may be helpful to write a brief hardship statement explain why and how you got into this situation. 

• Now call the creditor/attorney and explain your situation. 
• Offer to pay $100/month until the amount is repaid.  Ask them to charge 0% interest.  They may or may not, but they have an option to charge 0% - whatever your state allows in an agreement like this.
• Offer to fax the budget, hardship statement and a copy of your latest pay stub. 

In most cases, they will agree.  If not, explain that if they refuse the offer (don't be ugly here!) then you have no choice but to seek bankruptcy protection as you cannot pay your bills if the wage garnishment continues.

If they agree, MAKE SURE TO GET THE AGREEMENT IN WRITING!

Do not agree to any check-by-phone or any other payment arrangement without the written agreement.

Hope this helps!

Photo By: ladybeames'

The Fair Debt Collection Practices Act (FDCPA) clearly states what a debt collector may and may not do when contacting you in an attempt to collect a debt.  Harassment is the single most prohibitive action.  They cannot harass or use abusive language when speaking to you or when speaking to any third party that may be helping you.

For example:

• A creditor is NOT permitted to contact you before 8am or after 9pm.
• A creditor is NOT permitted to contact you at work after you have requested them not to by mail or fax.
• A creditor is NOT permitted to use obscene or profane language when speaking to you.
• A creditor is NOT permitted to make false statements, such as threatening to take actions that they cannot take or have not intention of pursuing.
• A creditor is NOT permitted to use threats of violence.
• A creditor is NOT permitted to publish a list of names of people who refuse to pay their debts.

If you feel a collector has violated your rights, you may contact your state Attorney General's office www.naag.org and the Federal Trade Commission www.ftc.gov.

To learn more about debt collection practices and your rights under the law, visit http://bit.ly/9SxgYF.