Smack Debt Consolidation Services

If you have been terribly behind your payments you are most likely dealing with debt collectors. Most of these debt collectors are professional in their dealing since they have follow the boundaries defined by the Fair Debt Collection Practices Act. However, there are many others who cross the line with bogus threats and illegal tactics.

Listed below are some of the threats made by the debt collection agencies:

If you do not pay your debt immediately, we will take away your house.
This is a bogus threat unless the debt is secured by your house, the creditor cannot take away your house from you.

If you don't pay your bill now, we will be forced to issue a warrant
Nonsense. Unable to make a bill payment is a civil matter and not a crime. Threatening with jail time is against the rules.

Even though you have sent a cease communication notice (do not call request), we will call you anyway
The debt collection act allows you to notify the debt collection agency to stop contacting you on your home or work phone as long as your request is in writing. Failure to respect the communication is a clear violation of federal law.

We will garnish your wages to recover the debt
Most collectors will threaten legal action but most of them have zero legal authority. However, if they drag you to court and win a judgment against you, your wages may get garnished. If it gets this far, make every attempt to pay off your dues.

We know where you live so you better pay up
Yes, a few debt collectors will threaten violence in order to recover the money. However, such practices are barred by law. Just last year, the FTC received 300 mails citing threat of violence as a cause for complaint.

Other than the bogus threats, many debt collectors use tactics that are illegal. As an example, discussing your debt with a neighbor, relative or employer is a clear violation of the act. As long as they do not mention about your debts to any of the third parties, they are on the right side of the line. However, some of the debt collectors will cross the line to embarrass you.

There are several other complaints received by the FTC regarding threatening, harassment and intimidation. Use of obscene language, shouting over the phone, constant phone calls to recover money, failure to respond to written disputes are a few.

So what can you do to protect yourself from debt collectors?
It is important to understand your rights and read the debt collection law. Read more about the Fair Debt Collection Practices Act here http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

Remember that the FDCPA applies only to collection agencies and professionals dealing with debt but does not apply to your original creditor (ex bank or credit card company). However, there are numerous other state and public laws that can help you understand your rights as a consumer. If you feel the creditor has crossed the line, it may be time to read more on your state consumer laws and report the matter to the attorney general in your state.

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