How to Protect Against Aggressive Debt Collectors

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By SimplyFrugal
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As many Americans are faced with economic hardship, some debt collection companies are using aggressive tactics for collecting debt. Families have been threatened, harassed and been falsely informed of their options. It is extremely important for you to know your rights when it comes to debt and to protect yourself from inappropriate debt traps.

Difficulty: Moderate

Instructions

Step 1

Learn about the Fair Debt Collection Practices Act (FDCPA). The FDCPA is enforced by the Federal Trade Commission. The Act prohibits debt collectors from using abusive, unfair, or deceptive practices to collect debt.
Step 2

Do not tolerate harassment. Debt collectors can not threaten you or use abusive or profane language in their communication with you. Their role is to make arrangements with you to repay the money owed to the creditor.
Step 3

Be aware of what a debt collector can not say in order to coerce you to pay your debt. The debt collector are prohibited from stating:
1. You will be arrested if you do not pay your debt
2. Falsely threatening to seize your property
3. Falsely stating that they will take legal action
Step 4

Protect your information and your money. Write everything down, including names, dates/times, details of payment request, mailing addresses, phone numbers and account numbers discussed in your phone conversations. Do not provide any secure information, including social security numbers, account numbers, and bank information without proper validation of the company. Be very weary of wiring ANY money to ANYONE.
Step 5

Contact the credit card company or other company for which the debt collector claims to be representing to validate the information. Some companies will still allow you to arrange for payment through them and avoid further communication with the debt collector, others will not.
Step 6

Contact your state Attorney General's office to report a debt collectors unfair tactics and/or harassment.

Comments

violet4me said

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on 9/27/2009 Well put! Knowledge is power. In these tough financial times, knowing what debt collectors can and cannot do legally can help those in financial distress.