Credit Card Debt Collectors
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Dealing with persistent credit card debt collectors can be both challenging and stressful for the consumer facing mounting charge account debts. Constant phone calls, relentless dunning, and continual threats of foreclosure or repossession can add to the already traumatic experience of managing difficult monthly payments. Such a monetary crisis is, unfortunately, a reality in many homes. Overspending may be the underlying cause of this crisis, but there may be other causes as well. The unexpected loss of a job will often send a family's finances into a tailspin. Medical expenses or the loss of a family breadwinner could be contributing factors as well. The thought of loosing a home, a car, or other personal items can strike fear in the minds of many consumers. Of course, careful planning before hand can sometimes prevent these catastrophes. That planning should include solid budgeting along with disciplined spending habits. Professionals in the field can also make recommendations regarding the consolidation or settlement of debts or even, as a last resort, bankruptcy. Debtors do have certain rights under the law when dealing with credit card debt collectors. There is a limit to the kind of activity that these agencies can engage in when attempting to recover delinquent funds for creditors. Consumers who understand their rights and have a working knowledge of when collections activities have crossed the line into harassment are better prepared to face the consequences of unpaid charge account bills.
There are a number of rights that belong to a consumer who is contacted by credit card debt collectors. Even when a borrower has defaulted on charge account debts, these rights apply. Collection agencies may, of course, contact delinquent account holders by a variety of means. Those means could include telephone calls, dunning letters, faxes, or telegrams. There are limitations on the hours of the day that an agency can contact a debtor. Making contact before eight a.m. or after nine p.m. is off limits. Communication at a debtor's place of work is off limits as well if an employer has made it plan that such contact is not welcome. Once a debtor has hired an attorney, the collection agency must work through the attorney and not bother the debtor. Contacting third parties and informing them of the issues of the case is not permitted. However, these agencies may talk to third party individuals if they are trying to locate a delinquent account holder. The specifics of the case can generally only be discussed with the borrower or the borrower's attorney. Written notice regarding the amount of money that is owed and the course of action that will be taken if payment is not received must occur within five days of the initial contact. Understanding the rights of both the debtor and the credit card debt collectors can help in dealing with this difficult circumstance.
Should a borrower feel that they do not owe the money that the credit card debt collectors claim that they do, the borrower has a means of recourse. If the debtor sends written notice to the collection agency stating that the debt in question is incorrect, the agency must cease communication for thirty days. However, when proof of the indebtedness is provided by the credit card debt collectors, contact can once again be renewed. Any form of harassment, abuse or threat on the part of the collection agency is not allowed under the law. These collectors may not pretend to be lawyers or government representatives if this is not the case. They also can't disseminate false information about the debtor to credit bureaus or other organizations. Paper work that has been falsely made to look like an official court document is an act of illegal harassment. Threats of arrest, property seizure, or garnished wages are not permissible unless that is the actual intention of the collection agency or creditor. Collecting more money than can be accounted for in the original debt is illegal. If a debtor provides the collector with a post dated check, the agency may not deposit the check ahead of time.
If a consumer feels that they are the victim of harassment on the part of credit card debt collectors, there are specific actions that they can take. Under the Fair Debt Collection Practices Act, collection agency must stop contacting a debtor if the debtor grants power of attorney to another person. If a debtor sends a cease and desist letter to the agency, the agency must also back off. This approach can backfire, however. Cease and desist letters can sometimes encourage agencies to speed up the collections process, taking things to the next level. A debtor may also want to sign on with a debt restructuring service. Once the debtor has done this, a collection agency must work through the service rather than harass the borrower. The Bible talks about the wisdom of not assuming to know what the future will bring. "Boast not thyself of tomorrow; for thou knowest not what a day may bring forth." (Proverbs 27:1)
In addition to bill management services, there are other options available to consumers who are dealing with credit card debt collectors. Professionals who help settle debts can negotiate a plan for paying back charge account indebtedness. If possible, a borrower can contact creditors themselves and try to work out a plan for getting caught up on monthly payments. In general, the best way to avoid having to deal with collection agencies is to keep up with all monthly payments in the first place. If a consumer should fall behind, the most honorable thing to do is to take whatever steps are necessary to make good on their promise to pay the money that is owed.
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