How to deal with debt collectors

Media General News Service
Published: October 5, 2008

Are you in a lot of debt? You’re not alone.

The Federal Reserve Board said consumer debt soared to an estimated $2.59 trillion in July, from $2.52 trillion in March 2008.

Are you in over your head?

Rod Griffin, Experian’s manager of consumer education in Dallas, said delinquencies at that credit agency are higher historically than normal “but not by a tremendous amount at this point.“

John Nemo, spokesman for ACA International, the association of credit and collection professionals based in Minneapolis, said there definitely has been a spike in the number of consumer account going to collections recently.

Have you been contacted by a debt collector yet?

Gerri Detweiler co-authored with Mary Reed and John Ventura “Stop Debt Collectors: How to protect your rights and resolve your debts,“ told some outrageous things that debt collectors do and what consumers can do about it.

She said some debt collectors:

Tell people they owe more than they do.

A lot of times, they’ll tack on interest and fees, Detweiler said.

The consumer’s debt might have been $2,000 when it was charged off by the creditor. A year later, a debt collector might claim it’s $4,000.

Viewing your credit report for free at http://www.annualcreditreport.com lets you know how much you originally owed.

Fail to verify the debt. Within five days of your first contact with the debt collector, you’re entitled to written verification of the debt so you can investigate it.

The verification should include the collector’s name, address, phone number, amount of debt, original creditor’s name and how to dispute the amount owed.

“If it looks like too much, I encourage consumers to challenge the collection agency and insist on a breakdown,“ she said.

If it’s not your debt, reply in a letter saying, “ ‘This is not my debt. Do not contact me again.‘ They can’t contact you unless to say they’re taking legal action against you.“

If the debt is too old, tell them so, saying, “ ‘This is far too old to collect. Please leave me alone.‘ “

In Virginia, the statute of limitations on an open account runs out after three years. Verify that. It can change.

Make threats that they can’t or don’t intend to carry out.

They may imply that if you don’t pay up, they’re going to tell your employer or a neighbor about your debt.

That’s illegal.

They may threaten that if you don’t pay some by the weekend, they will have you jailed, have your paycheck garnisheed, sue you or take your house.

Debt collectors can’t pursue any of those things unless they first take you to court, Detweiler said.

Keep a written record of everything they say and every call.

Call you at work. “If you tell them you can’t take these calls at work, they’re not allowed to call again,“ Detweiler said.

Harass you. They may call repeatedly, even before 8 a.m. or after 9 p.m., which is illegal unless you give permission.

They may make a racial slur or call you a deadbeat.

They might tell other people about your debt, such as your neighbor or spouse, when they’re only permitted to ask a third party your whereabouts — and only once.

If you have an attorney, the collector must deal with the attorney.

Trick you into triggering a new statute of limitations.
If you agree to make a payment before you get the verification, “that can start the statute of limitations all over again,“ Detweiler said.

You’d be acknowledging that you owe the debt.

If you get nowhere with a debt collector, or your rights are violated, contact the Office of Consumer Affairs.

Go to the Alabama attorney general’s Web site (http://www.ago.state.al.us/) and search “debt collectors” to read about your rights under the federal Fair Debt Collection Practices Act.
Contact Iris Taylor at (804) 649-6349 or .