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Know Your Rights: Dealing With Debt Collectors
Dealing with debt collectors can be stressful, but understanding your rights can empower you and make the process less daunting. Here’s what you need to know:
Stopping Unwanted Communication:
You have the legal right to stop a debt collector from contacting you. While this won’t eliminate the debt itself, it will stop the calls.
The collector may still pursue other legal means of collection, such as filing a lawsuit or reporting negative information to credit bureaus. You can also request that a debt collector refrain from calling you at specific times, such as before 8 a.m. or after 9 p.m., or while you’re at work.
Dealing with Harassment:
Harassment from debt collectors is illegal. They cannot repeatedly call you with the intent to annoy, abuse, or harass you.
Threats of violence and profane language are also prohibited. If you experience harassment, insist that it stop.
If a verbal request is unsuccessful, put your request in writing. If the harassment continues, file a complaint with the Consumer Financial Protection Bureau (CFPB).
Getting Information and Legal Representation:
You have the right to demand specific information about the debt, including the debt collector’s name and address, the amount owed, and steps to take if you believe the debt is not yours. If you have legal representation, inform the debt collector. They are legally obligated to communicate through your attorney.
Protecting Your Benefits:
Many federal benefits, including Social Security, Veterans benefits, military annuities, railroad retirement benefits, federal emergency disaster assistance, and federal student aid, are typically exempt from court-ordered garnishments. Remind the debt collector of these protections.
Taking Further Action:
If a debt collector continues to violate your rights, warn them that you will file a complaint with the appropriate authorities, such as your state attorney general’s office, the Federal Trade Commission (FTC), or the CFPB. If necessary, you can also sue a debt collector in state or federal court for violations of the law, such as if their tactics caused you lost wages or medical bills. Lawsuits must be filed within one year of the violation.
Improving Your Financial Situation:
While dealing with debt collectors can be challenging, focusing on improving your financial situation can help you regain control. Consider increasing your income through a raise, a side hustle, or additional hours at work.
Paying off debt as quickly as possible can reduce stress and eliminate unwanted contact from debt collectors. Explore options like balance transfer credit cards and debt counseling to expedite your debt repayment journey.
Cutting expenses and shopping around for better rates on services like auto insurance can also free up funds to put towards debt.