Fair Debt Collection: Don't be Intimidated

There are a number of common misconceptions surrounding the function and the extent of the authority held by debt collectors, and knowing the truth can an empowering tool toward recovering financial stability and debt relief. The tendency to ignore or become intimidated by debt collectors doesn't help you out of your situation, but knowing your rights and the legal restrictions governing collection agents can point you in a positive direction. The Fair Debt Collection Act is a collection of rules and regulations that applies to debt collection agencies and their representatives, and is designed to protect credit borrowers in all states.

Debt collection agencies – those infamous entities known for the endless phone calls and letters-- have purchased your debt from the original point of credit purchase. A department store may sell your unpaid credit card debt to a collections agency at a reduced rate in attempt to reap some profit on a bill. Many companies don't consider chasing after delinquent debtors to be cost effective, and they certainly aren't willing to tarnish their public image with aggressive, often unpleasant collection tactics. The credit agencies have no such reservations, however, and specialize in methods of communication that are tantamount to harassment. They are limits, though, to how and when they can conduct collections, and they will generally exploit every opportunity availed to them. Being aware of what limitations bind these agents can take some of that staid gravity away from their imposing presence.

A debt collector is permitted to contact you in person, by phone, by mail, by telegram or fax. They may not, however, contact you at inconvenient times (before 8 a.m. Or after 9 p.m.), and they cannot contact you at your place of work. Even within these limitations, the onslaught of calls and letters can seem overwhelming. According to the Fair Debt Collection Act, a collector is required to provide specific documentation within five days of being contacted. This written notice must specify the amount of money that you owe, the name of the creditor to whom you owe it, and provide instructions on what action to take if you dispute the collection agency's claims.

Under the Fair Debt Collection Act, a collector may not do the following:

• Misrepresent the amount that you owe
• Use a false name
• Use obscene or profane language
• Falsely claim to be or work for a credit bureau
• Falsely imply that you have committed a crime
• State that actions will be taken against you (such as a lawsuit) that are not legally permissible or that they do no intend to take
• State that you will be arrested if you do not pay your debt

If you choose to negotiate with a debt collector, the following actions are recommended:

• Take steps to evaluate ahead of time how much you owe and what you can reasonably afford to pay each month
• Offer to pay less than what you have budgeted
• Be willing to negotiate, but make decisions in your best interests, not the collectors'
• If an agreement is reached, make notes on it, send the collection agency a letter of confirmation, then abide by it

Reviewing your debt situation and knowing you rights ensure that you are informed and prepared when the collectors descend upon the peace and quiet of your home. Being informed will put you in control and allow you to be more at ease, alleviating a good amount of stress, insecurity and misunderstanding.

The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it’s nearly unbearable. You struggle along while your creditors are turning up the heat. And now you’re at the point where the late fees, penalties and interest expense make it impossible to keep your head above water.

Ask yourself this. If you could eliminate your debt without permanently damaging your credit, why wouldn't you?

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Bankruptcy is not your only option! Our goal is to help you determine the right course of action for you to take. We will connect you with a debt settlement company today that will help you avoid filing for bankruptcy protection.

Are your finances spiraling out of control? Get the information you need today to stop harassing creditor’s phone calls. Total Debt Relief provides a matching service to connect you with pre-screened Debt Settlement Professionals. These debt management pros will educate you on all of the options available to you to get out of debt. Total Debt Relief helps you make the most informed decision possible so that you can get your financial life back on track.