Debt Collection calls can be frustrating, stressful, harassing and downright scary. So before you go paying off a debt collector, you NEED to read this!

Debt Collectors

A Debt Collection Company isn’t always exactly who we think they are. Debt Collection Companies purchase “bad” debt for pennies on the dollar. For example, you owe a bank money on a defaulted credit card or loan, the bank writes off the debt on their taxes as a charge off and they get huge tax credits from the IRS. The bank then sells your debt to a debt collector at a significant discount, usually at 95% or more discount. So you owed $10,000 to XYZ Bank, they would sell it to ABC Collections for $100 (or less). The Collection Company tacks on interest, collection fees and penalties and tells you that you now owe $15,000 and that it will collect 12% interest until you pay it. They call you, harass you, and it freaks you out, so you think about paying it. I’m here to tell you to STOP. DO NOT PAY A DEBT COLLECTOR.  There are laws that protect you against unfair debt collection practices and can help to fight back against these scum bags. Yea, I called them scumbags, if you’re offended, maybe you should redo the math… They just paid $100 and they want you to pay $15,000, a total margin of $14,900 dollars, for a debt that was written off by the original creditor. Oh, did I mention that banks have insurance that protects them when a debt goes into default. They don’t actually lose the money….

Debt Collection Laws

There is a provision of the Fair Credit Reporting act called the Fair Debt Collection Practices Act. This protects consumers like yourself from unfair debt collection. Most consumers don’t even know that there are laws that protect them, and debt collectors know this and exploit it. Did you know that a debt collector is NOT allowed to call you at work, speak to anyone else about your debt, call you on a cell phone, or leave you a voicemail!? All of these Debt Collector calls can be potential violations where the collector could legally owe YOU money for violating your rights. If a debt collector doesn’t identify themselves and say a paragraph notifying you that the call is an attempt to collect a debt, that is a violation. If a debt collector threatens you, harasses you, calls you numerous times in a day, or calls you with an automated dialer, yep, these are all violations too. The more violations you can stack against the debt collector, the better. In my professional experience, most debt collectors commit MAJOR violations of the law, but there are a few out there that follow them very strictly.

What To Do When A Debt Collector Calls…

These calls can be downright terrifying, annoying, or emotionally draining. What to do when a debt collector calls? My advice, and I’m not an attorney, is to say, “Please stop calling me at work,” and hang up. What if you aren’t at work, what if they called the house phone? Tell them the same thing, “Please stop calling me at work,” and hang up the phone. If they call back, or call that number again, it is highly illegal and you will be able to work with a credit repair company who can audit your situation and advise you on the next steps. Often times they have attorney assisted programs where the attorneys fight the debt collectors at no charge and they only get paid if they win a settlement in court from the collector. How often does this happen? VERY OFTEN.

After A Debt Collector Calls

After a Debt Collector Calls, you want to go right away and check your credit report. You want to see if the debt collector has reported any information about you to the three major credit bureaus, Equifax, Experian and Transunion. You also want to look at the inquiries section and see if they have pulled a copy of your Credit Report. Debt Collectors are NOT allowed to pull your credit report without your permission, so this is a violation. Debt Collectors are also mandated to send letters 30 days prior to reporting on your credit OR calling you. Do you see how you are able to fight back>

Protecting Yourself From Debt Collectors

Obviously, we have a bias, since we have a passion for Credit Repair, we always recommend getting a free consultation with us. But, if you have a friend that is an FDCPA attorney or FCRA attorney, you should give them a call and ask a few questions. If your attorney does not specialize in credit laws, DO NOT ask them to start.
The first step is to have us evaluate your situation, your credit report, details of your situation, and more. We will customize a plan of action and go over everything with you. We work hand in hand with an attorney that reviews every case after we have completed the steps on our end to gather the evidence for them.

Treat All Debt Collector Communications As Evidence

Every communication, whether by phone, US mail or email should be treated with evidence. The more evidence you save, the better your case will be in the long run.

Save All Letters From Debt Collection Companies

You want to save all the letters they send you, fax you and print out any emails they send you.

Log All Debt Collector Phone Calls & Get Proof

If they called you on your cell phone, take a screenshot if the call log. If they call on the home phone or at work, take a picture of the caller ID. Log all debt collection calls on a piece of paper and KEEP IT!

Record Debt Collection Calls And Voicemails

Depending on your state’s telephone recording laws, I’d suggest recording all live phone calls (if you pick up) and saving all voicemails so that an attorney can review them.

Do Not Pay The Debt Collector

Under the Fair Credit Reporting Act, a debt collector has to prove that a debt is 100% accurate, timely and verifiable. They also have to prove that they own the debt, show you how much they paid for the debt and prove that they have the legal right to report the debt on your Credit Report. If they can not prove this (which with our statistics os over 88% of the time), they are required to remove the account from your Credit Report.

I hope that I was able to relieve some of your stress about your debt. In the comments below, feel free to ask questions pertaining to your situation, we’ll actually respond. Do you have a debt collector horror story? Share it in the comments below…