Protect Yourself from Debt Collectors | What Not to Say

Don't make the mistake of confirming a debt collector's story. The Fair Debt Collection Practices Act requires debt collectors to provide validation of the debt, including the amount owed, the name of the creditor, and a statement that unless you dispute the debt within 30 days, it will be assumed valid.

Don't provide financial information over the phone. Debt collectors can't pressure you into providing sensitive financial information, such as bank account numbers or Social Security numbers.

Know your rights and don't let debt collectors intimidate you. The Fair Debt Collection Practices Act prohibits debt collectors from using abusive or harassing language, including threats of violence or arrest.

It's essential to know the rules debt collectors must follow.

Debt collectors have rights to collect a debt, but they must also follow specific guidelines.

Understanding the agency's rights can help you navigate the situation.

The agency's rights to collect a debt are governed by laws and regulations.

Knowing what you can and can't say to a debt collector is crucial to avoiding potential pitfalls.

Debt collectors must follow rules involved in collecting a debt, which can help you get out of paying them if you know what to do.

Don't make any payments or promises to a debt collector without verifying the debt is real. This can be a mistake, as it can "re-affirm" that you owe the debt and allow the collector to report it to the credit reporting agencies.

Don't provide your financial information to a debt collector. This includes bank account numbers, as it can be used to withdraw funds without your consent. Consider buying a cashier's check instead.

Don't agree to pay off a debt without confirming it's legitimate. Some debts may be past the statute of limitations, and the collector may be trying to scam you.

Here are some things debt collectors can't do:

When dealing with debt collectors, it's essential to know whether you're talking to the original creditor or a third-party collector. The original creditor is the company or business that lent you the money in the first place, such as Chase, American Express, or a hospital for medical debt.

Original creditors may use their own in-house debt collectors to contact you about overdue debts. However, they can also turn over your account to a third-party debt collection agency.

Third-party debt collectors are companies that make money by collecting debts owed to other businesses. If you agree to pay a debt collector, they aren't the original creditors, but they are the ones making money off your payments.

Here's a key difference between original creditors and third-party collectors: original creditors aren't bound by the Fair Debt Collection Practices Act (FDCPA), but they may be bound by local and state laws that are similar to the FDCPA.

On the other hand, third-party collectors must follow the FDCPA rules, which include restrictions on calling hours, threatening violence, and lying about their identity.

Here's a table to help you understand the difference:

Knowing whether you're dealing with an original creditor or a third-party collector can help you navigate the debt collection process and protect your rights.

When a debt collector calls you, it's essential to know what to say and do to protect yourself. Here are 5 things to say or do:

Ask the debt collector for their name and employee identification number. This will help you verify their identity and ensure they're a legitimate collector.

You can also ask the representative to mail you the information they have about the debt, including the balance, last payment date, original creditor, and when the account was opened. This will give you a clear understanding of the debt and help you dispute it if necessary.

Let the debt collector know that you understand your rights under the Fair Debt Collection Practices Act (FDCPA). This will remind them that they must follow the law and not engage in any unfair or deceptive practices.

If the debt collector is calling you at work, let them know that you're not allowed to take these types of calls at work. They should not call you at work after you've told them to stop.

You can also tell the debt collector to stop calling you by sending them a letter in writing. Keep a copy of your letter and send the original to the debt collector by certified mail.

Here are some key things to remember:

Remember, staying calm and assertive is key when dealing with debt collectors. Keep a record of all interactions and don't be afraid to seek help if you feel harassed or deceived.

If a collector sues you, a collection agency may turn to the courts to legally compel you to pay or garnish your wages.

You don't have to go it alone, and our debt counselors are here to help you with the debts you have.

A collection agency may try to garnish your wages, which means they can take money directly out of your paycheck.

You have options, and working with a debt counselor can help you get out of debt fast.

Debt collectors can be aggressive, but you don't have to answer their calls or engage with them if you don't want to.

Our debt counselors can help you navigate the process and find a solution that works for you.

Collection laws and practices are in place to protect consumers from harassment and abuse by debt collectors. Debt collectors are regulated by the Texas Debt Collection Act and the Fair Debt Collection Practices Act (FDCPA).

Debt collectors can't call you at work if they know your employer doesn't permit such calls. They also can't call before 8:00 a.m. or after 9:00 p.m. unless they know those times are more convenient for you.

The FDCPA prohibits debt collectors from using unfair or unconscionable means to collect a debt. This includes any conduct to harass, oppress, or abuse.

Here are some specific things debt collectors can't do:

If you're being subjected to harassing, abusive, or fraudulent debt collection tactics, you can notify the collector in writing and keep a copy of your letter.

If you're being contacted by a debt collector, it's essential to know your rights and the rules they must follow. The Fair Debt Collection Practices Act prohibits collectors from calling you at work if they know your employer doesn't permit such calls.

You have the right to request that collectors stop contacting you, and if you do, they must comply. To make a formal request, send a written letter to the collector by certified mail, and keep a copy for your records.

If you're dealing with a collector, remember that they can only call you between 8:00 a.m. and 9:00 p.m. unless you give them permission to call at other times. They're also not allowed to use unfair or unconscionable means to collect a debt.

When dealing with debt collectors, it's essential to keep the conversation professional and impersonal to protect yourself both emotionally and legally.

Debt collectors are regulated by the Texas Debt Collection Act, which prohibits them from engaging in certain behaviors. Debt collectors can't drive the conversation to an emotional place, so be firm and don't let them get under your skin.

If they start to threaten or accuse you, shut down the conversation and remind them of your rights under the FDCPA. You have the right to not tolerate any abuse, so stand your ground.

It's also crucial not to become abusive yourself, as this can weaken your case in the event of an FDCPA claim. Keep your cool, even if the collector is being aggressive.

If the debt is fully valid, but you're struggling to pay, you can try to offer a settlement. This is a legitimate way to resolve the debt, and it's better than ignoring the collector or making empty promises.

Taking notes is a crucial step when dealing with debt collectors. It's essential to have a paper trail and proof of their communication in case you need to dispute charges.

The name of the debt collectors who called you is one of the key pieces of information to note. This will help you keep track of who you've spoken to and what was discussed.

A mailing address to send written correspondence to is also important to get right. This will ensure that your letters reach the debt collector and are not lost in transit.

You should document every debt collection process, including what was discussed and any requests made. This will help you stay on top of the situation and ensure that you're not caught off guard.

To keep track of the details, consider keeping a list of the following information:

Debt collectors may ask you for information on your assets, like the value of your home or other property, to try to strengthen their case for a lawsuit or garnishment.

They might want to know if you have any other property that could be taken to pay off your debt.

Providing debt collectors with banking information could be a mistake, as it could be interpreted as you authorizing them to debit your account for the amount owed.

This could also be seen as you taking responsibility for the debt, which might not be what you intend.

Debt collectors may try to get you to confirm the debt, but don't feel pressured to do so.

Debt collectors have a range of options to collect a debt, including contacting you multiple times, sending letters, and even suing you.

They can sue you in court to collect the debt, and if they win, the court can order you to pay the debt.

Collectors can also try to negotiate a payment plan with you, but be aware that this is not a guarantee of a reduced amount.

If a collector threatens to sue you, they must send you a written notice, as required by law.

Collectors can report your debt to credit bureaus, which can negatively impact your credit score.

They can also charge you late fees and interest, which can add up quickly.

Collectors are required to follow the Fair Debt Collection Practices Act, which limits their ability to contact you and engage in certain behaviors.