While Acquiring Location Information, Debt Collectors May Not:

• unless you ask the collector, state for whom he or she works;
• Inform others, including family, friends, neighbors, and coworkers that you owe a consumer debt;
• Not communicate by post card;
• Not use any language or symbols on envelopes or any mail parcels that indicate that the communication is from a debt collector or the contents of the mail parcel relates to the collection of debt;
• Communicate with the consumer debtor or anyone else once the debt collector knows the debtor is represented by an attorney.   

 While Communicating Directly With Consumer Debtors, Collectors May Not:

• Contact you at any unusual time or place:  Inconvenient times are considered to be between the hours of 9:01 p.m. to 7:59 a.m.;
• Contact you if the debt collector knows that you are represented by an attorney or can ascertain the name, address, or telephone number of your attorney;
• Contact you at your place of employment.

Harassment and Abuse Occurs When debt collectors Do The Following:

• Uses or threatens the use of fiscal violence or other means to harm one's person, reputation, or property;
• Uses language that is intended to abuse the hearer of such person;
• Calls consumer debtors repeatedly with the intent to annoy, abuse, and harass;
• Not divulge their identity and collection agency.    

False and Misleading Violations Occur When Collectors:

• Represent falsely that they are a police officer, government official, or affiliated with the United State government;
• Falsely represent that they are an attorney or that their communication is from an attorney;
• Threaten that non-payment will result in arrest or imprisonment;
• Threaten that nonpayment will result in loss of property or loss of wages;
• Threaten to take action that the collector cannot legally take;
• State that the consumer committed a crime;
• Threaten to communicate information that is false or should be known to be false;
• Use false, misleading, or deceptive information in an attempt to collect a debt. 
• Use any business name other than its "true" business name.  

Unfair Practices Occur When A Debt Collector Does One Of The Following:

• Collects an amount (interest fees or any expense other than the original purchasing agreement) that is not not authorized by the original agreement or by law;
• communicates with a consumer by postcard;
• Deposits or threatens to deposit postdated checks prior to the date on said check. 
  

When validating debts, debt collectors must, within five days of the initial communication with the debt collector:

• Disclose the amount of the debt;
• Disclose the name of the original creditor;
• Have a statement in the communication that states: "Unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;
• Have a statement that states: "If the Consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment will be mailed to the consumer by the debt collector;"
• Have a statement that states: "Upon the consumer's written request within the thirty-day period,  the debt collector will provide the name and address of the original creditor, if different from the current creditor;
• Not contact you if you have disputes or requested verification of your debt. 

• Contacting Consumers at inconvenient times;
• Making repetitive phone calls;
• Harassment and verbal abuse;
• Threatening to harm one's person or reputation;
• Contacting a consumer when the debt collector knows that the consumer is represented by an attorney;
• Contacting a consumer if the debt collector knows the the debt is disputed and the consumer has requested verification of the debt.

COLLECTIONS CONNECTIONS… (And How To Avoid Them)

If you are reading this, chances are you've been involved in at least one of these phone calls:

(Phone Rings)

YOU: I 'll get it honey!

WIFE: OK dear!

YOU: Hello?

VOICE ON PHONE: I want to talk to Mrs. Simmons.

YOU: Who is calling?

VOICE ON PHONE: That's not your business. Tell her I need
to speak to her NOW!

YOU: I'm sorry, we're having dinner right now.

VOICE ON PHONE: I'll bet she can afford to eat great dinners
because she doesn't pay her bills!

And CUT!!

OK. I'm not going to win any awards for the screenplay. But the fact is, this little scenario or something like it is played out hundreds of thousands of times a day. Nobody really wants to see it, but it gets more airplay then The Godfather on TNT.

What you do at this point in the conversation is critical. It determines whether you are going let some abusive loudmouth ruin your dinner, or if you are going to take charge of the conversation and explain some things to him or her. The key to making the right decision is knowledge. Knowing what your rights are will protect you from collectors and collection calls.

So what are these rights? There are many protections afforded to you in the Fair Debt Collections Practices Act (FDCPA). A more detailed discussion is for another day. But if you familiarize yourself with even the most basic parts of the law, your answer to that collector will be quite different than someone who does not.

Some things a collector can not do:

There are countless other ways a collector can violate the FDCPA. My 25 years of experience has shown me that they will go to any means to do so. You would think with all of these violations it should be an easy thing to control these guys. Right? Well, not really. And there some good and not so good reasons why.

First of all, our victim in our screenplay is just like any of us. A collection call can be a very intimidating thing. Even if you know you do not owe the money and are fully armed with a bag full of laws and violations. It's not fun to receive a hostile phone call from someone who not only believes you are delinquent, but genuinely believes that you are a lowlife because of this account. Creditorsdon't care about your situation and most times will not let you explain. If you are in a serious debt crisis, you can be intimidated by what appears to be a stronger position and forget what to do. If there are multiple calls and letters, many people simply stop answering their phones and opening their mail. This only compounds the problem. But many people are willing to pay whatever the price just to be left alone.

Many of these violations go unreported simply because the debtor starts questioning his or her own worth and integrity. The constant stream of harassment wears some people down so much that they simply give up. They don't seek out help because they are convinced that because of what the collectors say, they don't deserve it. The irony of that is that many collectors who act this way could crawl under the belly of a snake without hitting their heads. Usually calls like this are made close to some deadline or incentive for the collector. The fact is, if they don't get your money, chances are they will be delinquent paying their bills. That in and of itself is a reason not to pay them in my opinion.

The standard advice given to people is to "get an attorney." While I agree with that, there is not a good reason why this doesn't always work. While the FDCPA gives you rights, it does very little in the way of allowing you to collect damages if you are successful in filing a lawsuit. Consequently, most lawyers do not want to get involved in a case that will result in nominal compensation. After all, they have to pay their bills too. That said, some attorneys will help you write letters and show you how you can deflect these calls. Sometimes, there are some issues that may make it worth the attorney's time to actually take the case. More on that at another time.

You might be asking yourself what there is you can do for yourself if all the other options don't seem to work so well. Here are some ideas.

1. Write a 'cease and desist' letter to the creditor. This is a letter that says just that. The creditor must cease and desist from all communication with you. Most creditors, especially collection agencies, will simply go away if you send that letter. That's because they want to work on accounts that will bring in some money. If they can't contact you, they cant earn. Usually the account is referred to another agency or back to the original creditor.

2. When you receive a communication in the mail, do NOT ignore it. If, for instance, it tells you that the matter is going to an attorney, you should be aware of that fact.

3. If the collection agency continues to call you after you've sent your cease and desist, write a letter of complaint to the Federal Trade Commission and send the creditor a copy. This can be done online at the Federal Trade Commission's website.

4. If the problem becomes overwhelming for you, seek out help.
Financial 180 Group can help you through your debt crisis with over 25 years of experience dealing with hostile creditors. Often, we can get a creditor to accept a settlement or some other accommodation. Together, we can work to relieve you of this burden.

5. If you are sued, seek help immediately. The last thing you need is a default judgment. Financial 180 Group can refer you to an attorney in our network, or you can seek one out. Either way, it is imperative that you do something.

There are ways to deal with this crisis. Real Estate agents should be aware of some of the ways to deflect creditor calls and harassment. Remember, the sooner you get your client out of this mess, the sooner you will be able to do what you are trained to do: Help them buy or sell a home. When your client needs help, Financial 180 Group can help them, or we can help you learn how to help them yourself. Ending the Collection Connection is something that a client does not have to face alone. They have a network of professionals available to help. And we are there to help you all.