Smack Debt Consolidation Services

The below article offers practical advice on dealing with collection agencies and answers some of the common debt collection questions:

Can a debt collector leave messages on answering machine?
Yes, a debt collector can leave messages on your answering machine. However, you can tell the debt collector to stop leaving any messages on your answering machine. By law, the debt collector cannot leave any messages on your employer's answering machine or a relative's answering machine. A debt collector can still leave his name and number until you request them to stop calling.

Can a debt collector call me late in the night?
The answer is no. A debt collector has defined hours of calling as laid down by the Fair Credit Collection Act. Per the act, the hours of calling are between 8AM and 9PM. The debt collector must be aware and sensitive to time zones and call you during your local times. If the debt collection agency is using this tactic, you will need to notify in writing to stop calling late in the night and also mention you are aware about the Fair Credit Collection Act.

I have a verbal payment agreement with the debt collector. Is it enforceable?
The answer is No. The debt collection industry has a very high turn over rate and you must get in writing when you discuss a payment agreement with the debt collector. Some other debt collector from the debt agency might take over your account or your account may be sold to another collection agency. Having agreement in writing is very helpful if you are sued by debt collection agency or dragged into court later on in the game. Debt advisors recommend having all the material in writing and have both the parties sign on the agreement and that the agreement be dated.

Will debt collectors accept partial payments?
Most of the debt collectors will not accept partial payments. Debt collection agencies expect you to pay off the balance on the account and don't really care whether you beg, borrow or steal. Almost all of them will use aggressive tactics to force into paying off your debt quickly. Remember, you still need to continue making your home payments, you car payments and send them whatever you are left with at the end of the month. If they send it back, not a problem. Continue to keep proof that you have been working hard on making payments. This will reduce your odds of being sued as most of the knowledgeable debt collection attorneys are well aware that when your case reaches a judge, he may toss it out of the window.

Is my previous agreement still enforceable against a new debt collection agency?
Don't be surprised if you find yourself dealing with a new debt collection agency when you owe debts on your accounts. As an example, your creditor may fire the debt collection agency and hire a new one and all of a sudden you will receive debt collection calls and letters even if you had a payment agreement with the previous collection agency. Unfortunately, the agreement is not enforceable but you can try and explain them and send the previous agreement for consideration. This will help you create a payment schedule with the new collection agency.

A collection agency keeps harassing me on a debt I don't owe. What are my options?
Send them a certified letter asking them to verify the debt. Verifying debt simply means they have to send you all copies and proof that you owe the debt. You need to be well aware that there is a statutory period governing this, so you need to act quickly. If you are sure you do not owe them any money, you can inform the debt collector to stop calling you. Once you tell them to stop calling you, they are barred by the Debt collection practices act from trying to recover the debt or put negative information on your credit report. They can still contact you for one of two reasons
A> They are giving up on the collection
B> They are going to sue you and drag you to court.

A debt collector spoke to me over the phone and told me he was going to talk to my employer about garnishing my wages. Can a debt collector do this?
This is an old debt collection agency tactic. They cannot garnish wages unless the court rules in the favor of the debt collector. The debt collection agency must sue you and the case must be presented to the judge before your wages can be garnished. Until an official document is received from the court, your employer will not garnish your wages. Remember that most threats of this nature are bluff but if you start to feel that this one is for real, you are better off working on a payment agreement before you get sued by collection agency. Don't let the matter get out of hand because wage garnishment is very hard to reverse.

Does Fair Act Debt Collection Practices Act apply to credit card banks? No, this act applies only to debt collection attorneys and professionals debt companies. The original creditors are regulated by state law. Most of the credit card companies follow policies close to the FDCPA and will comply with your request to stop calling you at home or work etc. If you believe that you are being harassed by the credit card company or if you simply think your credit card company has gone too far, contact the Attorney General office in your state.

The above advice on dealing with collection agencies can help answer some of your initial questions about debt collection process.

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