What Collection Agencies Can't Do

Learn what collection agencies can't do. Collection agencies try a lot of different tactics to get you to pay your debt. They will call you constantly, leave threatening messages, and send tons of letters. If they cannot reach you at the phone number they have on file for you, they will do research to find other numbers for you, which may include your job. They may trick you into thinking that you are receiving a call from an old friend or neighbor, or that they are your creditor and just calling to verify your information, just to get you on the phone. They may try to harp on your emotions or make you feel bad about not being able to pay your debt. They will stop at almost nothing.

It is important to know what is legal for a collection agency to do, and what is not. According to the Fair Debt Collections Practices Act, there are specific guidelines on how a collection agency is to be conducted. Here a few things a collection agency cannot do:

- Call you before 8am or after 9pm.

- Call you repeatedly or ring your phone just to harass you.

- Call you if you send a certified letter requesting that you do not wish to be contacted by phone. (State in this letter that they are only to contact you by mail.)

- Use obscene or vulgar language when they are talking to you, or in messages.

- Make any false or misleading statements, including pretending they are from an attorney's office or pretending they are someone they are not. (This also can include threatening legal action when they have no basis for litigation.)

- Send misleading looking documents that are a false representation of the company. (An example would be sending you a letter on letterhead that looks like it is from a lawyer's office, when really it is from a collection agency.)

- Make any attempt to contact you by postcard.

- Use any other unfair practices to collect a debt. (Examples of this are collecting any amount that you did not agree to, or accepting a check that is postdated more than five days unless you agree in writing.)

If you feel that you have been illegally pursued and/or threatened by a collection agency, please know that you do not have to sit back and take abuse. Just because you owe some money, does not mean you have to be harassed and scared into paying. If a collection agency has been violating these guidelines, you have the right to contact an attorney or state attorney general's office. You can even call the Federal Trade Commission (FTC) help line at 1-877-FTC-HELP. You should not feel like you are helpless and have to endure collection agency abuse.

Collection agencies are annoying, but you have a defense. You should consider debt settlement right away. A professional debt settlement counselor could be able help you reduce the amount you owe so you can afford to clear up your accounts. Many professional debt counselors also act as negotiators that can negotiate payment options with your creditor and get your debt reduced up to 60% off your original balance. Once a settlement agreement is reached, you are no longer responsible for the remainder. When you pay it off, your credit report will reflect that the debt has been settled and paid-off. You may be surprised at the reductions in debt that a professional debt negotiator can get. Many of them charge no fee until your debt is settled. Overall, debt negotiation is a situation where everyone can end up satisfied. Your creditors get paid their settlement, you get peace of mind.

Don't let collection agencies scare you. Get counseling, know your rights, take control, and get your finances on the road to recovery.