Four Things You Should Do When Dealing With a Bill Collector

The financial crisis has resulted in large numbers of unemployed in the U.S. And it has also left a lot of other people having to take pay cuts. This means that large numbers of people have lost their income while others have had their income pared back. For both of these groups it has become hard to make sure that the bills are paid on time. If you are one of these, this might mean that, sooner or later, you could have to deal with a bill collector.



This is unfortunate but not the end of the world. The good news is that you have rights when the bill collector calls. Those rights are provided by the Fair Debt Collections Practices Act (the FDCPA) a federal law passed by Congress in 1978.



The FDCPA is needed now more than ever. The number of complaints about debt collectors in 2008 increased 10 percent over the number the Federal Trade Commission received in 2007. As a matter of fact, the numbers of complaints have risen steadily since the FDCPA was enacted. Though more awareness might account for some of the increase, it means that, even with the enactment of the FDCPA, bill collectors still haven't gotten the message. And many of those whose rights have been violated simply don't complain about it.



It's clear that debt collection agencies are still aggressive and use tactics that violate the rights of those who owe money (and even those who don't owe any.) They are using these tactics because they work. Put pressure on the person who owes the debt (or even on a person who doesn't) and the likelihood is that the money will get paid. No courts, no lawyers and a pretty good profit without a lot of fuss.



What can you do if you are caught in the crosshairs of a collection agency? Enforce your rights. As a consumer, you have rights under the FDCPA. These rights mean that, among other things, you cannot be lied to, abused, or harassed when a bill collector is trying to collect from you. And they must supply certain types of information when you ask for it and leave you alone for a period of time while they come up with it.



These rights have teeth. When a debt collector violates the provisions of the FDCPA-- when he or she violates the rights you have under the FDCPA-- you can sue for damages and your attorney can recover an attorney's fee in the process. That means the money to pay for your attorney comes out of the debt collection agency.



When dealing with debt collectors, don't make the following mistakes.



1. Not Knowing your rights. (Know your rights.) You need to remember that you have rights even when you haven't paid what you owe for whatever the reason is. We don't have debtor's prisons anymore and debt collectors can't buy a license anywhere to have any kind of open season on someone who is delinquent in paying debts he owes. This is true because of those rights. So make sure you understand just what those rights are. You can't claim them if you don't know them.



2. Not keeping records. (Keep records.) To be able to enforce your rights, you'll need to keep some records. This will mean a phone log (the number of calls and when can both be violations of the FDCPA); notes of what was said (is it abusive? harassing? Is it a misrepresentation?); and all the letters they send to you (do they have the proper notices? Do they confuse you about what you are required to do?) as well as the letters you send to them. All of these should be kept for you to better make your case.



3. Not responding on time. (Respond on time.) You have certain rights that must be exercised within a certain period of time or they are lost. (The right to verification information is one.) So be vigilant about any time limits. Respond when you need to and file suit on time--if it comes to that.



4. Avoiding the calls. (Don't avoid the calls.) Don't avoid the phone calls either. It is only by dealing with the debt collector that any of your rights under the law may be exercised. And exercising those rights--for example, the all-important right of verification-will increase the risks for the collector. That can give you some control. So it is better to take the call and talk.



If you are faced with any attempt to collect a debt, take a deep breath, make sure you get all the information you can and understand your rights. If you do, you'll be more able to enforce those rights--and you will be more in control. And that is a plus when so many other things have ended up out of your control.



Scott W. Clark, an attorney author, has written the e-book Know Your Rights: When the Debt Collector Calls-The Fair Debt Collection Practices Act. It is available for the Kindle (and for the Kindle Reader application available for computers) at Amazon and for other e-readers and in pdf at Smashwords. This article is for information purposes only and is not intended as legal advice.