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How to Stop the Madness

Your Debts, Your Rights • The Fair Debt Collection Practices Act • What's prohibited • Stop the madness • Tape that call --- News • Debt Collectors Go After Expired Verizon Bills • Florida Gets $1.3 Million Judgment against Debt Collector • Some Old Debts Never Die • Debt Collector Pays $1.3 Million to Settle FTC Charges • Court Stops Illegal Debt Collection Practices Aimed At Hispanics • Consumer Groups Decry Debt Collection Horror Stories • Debt Collectors Cash In On Uninformed Consumers • FTC Asks Court to Stop Abusive Debt Collectors • Illinois Sues Nationwide Debt Collector, Arrow Financial • Debt Collector Settles Abusive Practices Charges

Okay, so you know what they can't do, but they do it anyway. What steps can you take to prevent this abusive harassment? You don't have to move or change your phone number, but you will have to a bit of work to get it to stop. Here's what to do:

• Ask for written notice. Under the law, a collector must send you written notice stating the amount you owe and the name of the creditor. If within 30 days of getting this notice you send a letter stating you do not owe the amount, they may not contact you again. However, a collector may renew the activities if proof of the debt, such as a copy of the bill, is sent to you.

• Hang up the phone. No kidding, you can just hang up.

• Write a certified letter (return receipt requested) to the debt collection agency that is harassing you and tell them to stop. You have now begun your "paper trail." Keep a copy in a file labeled Debt Collection. Once the company has received your letter, they may not contact you again except to say there will be no more communication or to notify you that the creditor or the collection agency plans to take some specific (legal) action.

• File all collection letters and keep detailed notes of each call (times, location, language used, threats etc.). Make sure you get the person's name who is calling -- each time.

• Tape the conversation. Thirty-five states and the District of Columbia allow secret phone taping. You must ask permission from collector to tape the conversation if your state does not allow secret taping.

What can you do if you believe a debt collector violated the law?
You may sue a collector in a state or federal court within one year from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney's fees also can be recovered.

A group of people may sue a debt collector in a Class Action Suit and recover money for damages up to $500,000, or one percent of the collector's net worth, whichever is less. Documentation is imperative to prove your case, though most judges know these practices are occurring frequently.

Where can you report a debt collector for an alleged violation?
Report any problems you have with a debt collector to your state Attorney General and the Federal Trade Commission. Many states have their own debt collection laws, and your Attorney General's office can help you determine your rights.

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