The economic crisis shows no favors to those who have always been responsible. Between job losses and the ever upward spiraling costs of basic necessities such as food and heat, thousands of citizens who have always paid their bills find themselves unable to do so.
Enter the debt collector.
These come in three varieties:
- The collector representing your original debtor
- The collector representing a third party who has purchased your debt
- The collector trying to bully you into paying a debt you do not owe
The collector representing your original debtor will probably be the least frightening. He or she may offer to help you set up a repayment plan, or offer to settle the debt for a lesser amount if you can pay it off in a lump sum.
To many, that offer seems ridiculous. If they had the money to pay a lump sum, they would have kept up with the payments!
These collectors can become aggressive, however. They can file for a court judgment against you, which could result in money taken from your bank account, a garnishment of your wages, or a lien placed on your property.
State rules vary with regard to property, so you should check with your state’s Attorney General’s office to see which of your assets is safe. And remember, debt collectors aren’t allowed to touch bank accounts if the only money in them is your Social Security Retirement or Disability, or Veteran’s Disability.
Third Party and Bogus Collectors are the ones who often become vicious.
While non-payment of debt is a civil matter, not a criminal matter, they may even threaten to have you thrown in jail.
This is a completely false threat and consumers who act quickly to get a name and contact information from their caller can use it to get them thrown in jail. Fraud and harassment are criminal offenses. Report any such contact to the Federal Trade Commission or the State Attorney General.
Other illegal tactics include talking to your friends about your debt, publishing your debt, threatening bodily harm or using profanity, and calling you before 8 a.m. or after 9 p.m. Some collectors have even threatened consumers with loss of child custody or deportation. These threats are also false and illegal.
What could be worse than this behavior? Using it to try to collect debts you don’t owe.
Some bogus collectors search old records and will try to collect debts that were never yours, debts that were discharged in bankruptcy, or debts that have passed the statute of limitations in your state.
If you think such a debt is valid and you want to settle it, first demand written proof that the debt is yours.
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