Dont be Harassed by a Collection Agency

Debt Collection is big business today. Financial institutions and other businesses formerly undertook most of their collection activity in-house. Today it is much more common to outsource or even sell consumer debts to collection agencies. Unfortunately more than a few of these firms employ tactics that amount to unlawful harassment. You, as the consumer must be aware of your rights when confronted with the prospect of dealing with a debt collection agency.

Use the following tips to ensure you don ?t put up with unacceptable debt collection practices.

Under the Fair Debt Collection Practices Act (often referred to as the "FDCPA") you have specific rights to sue collectors who unlawfully threaten or harass you.

When confronted by a debt collector you are NOT required to:

• Admit or acknowledge in any way that you owe the debt.
• Disclose private information about your assets or income.
• Discuss anything with a collector unless you wish to.

D ebt collectors can?t threaten to send you to jail, harm you or contact your employer, neighbours or family about the debt. They cannot add collection costs or "late" fees. They cannot take and sell your property unless they have a mortgage or court order.

Before you pay anything, confirm you do actually owe the debt! Check your records and get legal advice if you don?t think you?re responsible for payment of the debt. All communication and further action on the part of the collection agency must stop until the debt is validated.

If the debt relates to an auto or personal loan, mortgage or credit card, you?re entitled to see copies of your loan contract. If the lender refuses to provide copies, advise the consumer protection agency in your state.

There are many valid defences why you may not have to pay all or part of the debt:

• mistaken identity
• the amount owed has been calculated incorrectly
• you didn?t receive the goods for which payment is claimed
• you?v e already paid the debt
• If the debt is very old, you may also have a defence under the statue of limitations
.

If you know you do owe the outstanding amount, negotiate to pay a reduced amount to settle the debt or organise a repayment schedule. If a repayment arrangement is made, confirm it in writing and keep a copy of the letter.

Finally, it's best to seek legal advice if you believe you have a legitimate reason for not paying.