Getting Out of Debt Fast

Debt Collectors

With today’s economic downturn, more and more people are falling behind on their payments and becoming targets of aggressive debt collection agencies. In the last few years, complaints against debt collectors have risen dramatically.

One way for debt collectors to make money is to buy up debt from companies and then actively pursue the individuals who owe the debt in the hopes of recouping losses and collect commissions. Credit card companies, banks, car dealerships, stores, any business who extends credit will refer their past due account to debt collectors.

The Fair Debt Collection Practices Act (FDCPA), which is administered by the Federal Trade Commission (FTC), regulates third-party debt collection agencies. The regulation is in place to protect consumers from abusive or unfair debt collection practices. Unfortunately there are some third-party debt collectors who ignore and disregard the rules.

Know your rights so you aren’t harassed by debt collectors. Collectors can contact you in person, by mail, telephone or fax. They are only supposed to contact you after 8:00 a.m. and before 9:00 p.m. They can not contact you at inconvenient times or places. A debt collector can not threaten you with violence or harm.

If you are contacted by a debt collector, ask them for proof that you really do owe the debt. They should be able to produce a document that has your signature that shows you applied for the debt. You might be mistakenly contacted because you have the same name as the person that owes the debt or because you have a phone number that once belonged to the individual they are looking for. So make sure you get proof of the debt. Even if you do owe the debt, check with your state and find out what the statute of limitations are for repayment. In some states a debt can no longer be collectable if the statute of limitations has expired, which can range from three to fifteen years. Make sure you find out your debt’s expiration date because once you pay a portion or initiate a payment plan, the clock starts ticking all over again.

Make sure you get everything in writing which includes any repayment plan you’ve negotiated and the names and numbers of people who have contacted you. You will also want to keep copies of any letters you send or receive and track all your correspondence with certified mail and return receipt.

If you don't want to be harassed by a debt collector, use a pay phone instead of your cell or home phone. They will not be able to get your phone number on a caller ID if you use a pay phone. If you want to stop a debt collection agency from contacting you at all, send them a letter telling them to stop. After the collection agency receives your letter, they can not contact you again. Of course, this doesn't mean that the debt has gone away; it just means that you won't be harassed by phone calls. If you do have problems with a debt collector, report problems to your state attorney general’s office.