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I'm new here, but I haven't seen a FAQ on this topic, so I thought I would put up a post on what to do when you are contacted by a debt collector.

First, a bit about me. I am a consumer attorney, and I spend about a third of my time suing debt collectors. I work in an office with four other consumer attorneys, and all of us sue debt collectors with at least part of our time. It's a fun job. I love what I do, I love my clients, and I love helping consumers.

Debt collection seems to be by far the most unsettling to consumers. It can be very very scary.

So here's the first rule: there are no generalizations. Anyone who says "all debt collectors are x or y" is wrong. I won't even admit that all debt collectors are jerks. It's a pretty icky job, from the sound of things, although I'm not sure that is agood excuse for their behavior.

Anyway, what should you do if you are contacted by a debt collector?

Here's the first thing, and keep this in mind: It's only money. Your situation is nowhere near as dire as the debt collectors most likely want you to think. You have some time to deal with this, so take the time and learn your rights.

There are a few good places to find that information. I try to provide good information on my blog (you can find the link in my profile). As a general rule, you can also find good information on your state's attorney general web site. I can't speak for other states, but Minnesota's AG web site is quite good (http://www.ag.state.mn.us/).

Okay, but you're on the phone. Find out who is calling you. Get a name. Get an address where you can contact them. Get a phone number to call them back. Take a lot of notes. Pete Barry has a great phone call log on his website.

Word: http://lawpoint.com/adobe_files/Collection%20Communications%20Log%20-% 20Word%20Format.doc
PDF: http://lawpoint.com/adobe_files/Collection%20Communications%20Log%20-% 20Adobe%20Format.pdf

Use it religiously. If you later end up in a lawsuit, your call log will be crucial. The same goes for recording. If you can record in you state, do it. Here is a guide to whether you can tape in your state: http://www.rcfp.org/taping and here is a general guide to taping: http://sjglover.com/files/taperecording.php

You can stop the phone calls, but only if you tell them in writing you do not want to be contacted by phone. They are not allowed to call you at work if you tell them not to. Tell them not to.

You have the right to have your debt verified. This is generally useless, but will at least stop the collection calls for a week or so. They will check their records, which probably say you owe the debt,

Stay as calm as possible. Like I said, this isn't the end of the world. You don't have to talk to them. Feel free to hang up the phone.

If they tell you they have filed a lawsuit, ask for the jurisdiction and court file number, and go check. If there really is a lawsuit, you have to deal with it. If there isn't, you've caught them in a lie.

What is the point? The FDCPA, or the Fair Debt Collection Practices Act. It governs everything debt collectors do. Any violation you can prove, ANY VIOLATION, entitles you to $1,000, plus actual damages, plus attorney fees. Actual damages include emotional distress, which is almost always an element in a debt collection lawsuit.

It is hard to find good consumer lawyers, but not that hard. Check http://naca.net/db.php3 for a good database of consumer lawyers.

If this seems biased towards a lawyer's point of view, it is. There isn't much you can do on your own. If you owe the debt, and you don't assert your rights against the debt collector, you will probably end up getting your wages garnished. So whether you do it yourself or find a lawyer, if you know a violation of the FDCPA has occurred, assert your rights.

Here's a copy, and it is pretty easy to read: http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

I'll be around, and I'll answer specific question when I have time. Hope it helps.

Edit: Okay, I clicked to disable HTML and BBCode both, and those links still show up as hyperlinks. Mods: either remove the hyperlink and make them dead, or leave them be. These are useful links better than you will find on any government site.

Posted: Thu Nov 16, 2006 8:36 pm Subject:

Sam, that is great info. Is there anything that can be done to Bass & Associates they are just blatantly violating every law imaginable. This shouldn't be allowed. I know they used to go by Ellis & Crosby but were shut down by FL AG, but that hasn't stopped them from opening up shop under the names of Bass & Assoc., Bass Prelitigations and there are a few more I'm forgetting. They are out of control with the threats. I read an article, I can post it, where a collector in NM was sentenced to jail and fined for doing such activities. And it wasn't a light sentence either, they were convicted of extortion.

Posted: Thu Nov 16, 2006 8:37 pm Subject:

Sam,
Welcome! And excellent information, btw. I will try and save it and go to those websites at my first available opportunity.

Posted: Thu Nov 16, 2006 8:38 pm Subject:

And speaking of Bass, read the thread where a collector called a person up and said "good luck in prison", or words to that effect. That's just wrong!! And what can this person do?

Posted: Thu Nov 16, 2006 8:40 pm Subject:

The answer to both questions above is to sue. Threatening criminal prosecution is a violation of the FDCPA. It sounds like Bass & Assoc. is cruising for trouble, as well. Sue them. They're obviously making a lot of money. Get some of it. The harassment they dish out is worth more than your debt, in many cases.

Posted: Thu Nov 16, 2006 8:44 pm Subject:

Besides,
They get their mail out of a friggin' hair salon!!!!!! (You have to read the thread to get the full effect, lol...)
When I become debt free, I'm going to write a book about the world of PDL's.....

Posted: Thu Nov 16, 2006 9:00 pm Subject:

One more thing:
It's nice to see that there are now TWO attorneys with a soul! (Dennis Williams being the other one on the board). I hope you post often!

Posted: Thu Nov 16, 2006 9:03 pm Subject:

We can co-author a book call it America's Most Stupid Collectors and document all their laughable/illegal threats. We can dedicate the first two chapters to Bass & Associates, we will put a picture of the hair salon on the cover of the book.

Posted: Thu Nov 16, 2006 9:05 pm Subject:

I do love the hair salon bit.

Posted: Thu Nov 16, 2006 9:09 pm Subject:

This Bass & Assoc. are a joke. Can you believe they actually have their mail sent to a hair salon and operate out of the owner's home? They are probably about to be foreclosed on and so they need to intensify the threats towards consumers.

Posted: Fri Nov 17, 2006 6:35 am Subject:

Hi Sam, good to see you here on this board. Your comments are full of information and community will be benefited out of it.

We have a page on similar topic, have a look:

http://www.debtconsolidationcare.com/handle-collectors.html

Your input will add new dimension to it. Please ask the site admin to place a link to this post from that page so that members can find all the information at one place.

Posted: Fri Nov 17, 2006 2:44 pm Subject:

A word on the FDCPA. $1,000 plus actual damages plus attorney fees is the available remedy. This is one area in which the emotional distress caused by the DC's abuse and harassment are worth money.

And DCs will pay. I am aware of at least one settlement for $275,000 where the DC, among other things, threatened to beat up a debtor. Fortunately, the debtor recorded the conversation. I believe cases have been tried and debtors have received far more for abuse.

The FDCPA has problems, but it is a powerful statute. It is worth your time to take good notes and record conversations, if recording is legal in your state. As you can see from this forum, debt collection is a scary thing. People panic, are afraid, and make poor decisions because they are ill-advised. From the FDCPA:

Posted: Fri Nov 17, 2006 2:54 pm Subject:

Hi, Sam.

You're a breath of fresh air! Thanks for joining the forum. You have already given much valuable information.

KS and Steelers1: I'll be the first buyer of your book! By the way, I'm confused. Are you guys buying that hair salon? If so, can I still get that 15% discount?

Posted: Fri Nov 17, 2006 2:56 pm Subject:

You can get the owner's special, 50% off all services and haircuts/styling will not be extra. If I can get to that back alley and get that loan from Bass & Associates, I'm buying that salon, if it isn't up for auction due to foreclosure yet.

Posted: Fri Nov 17, 2006 2:56 pm Subject:

Sam,tion. You stated that debt validation is basically useless-could you explain why? My situation is this: In 1982 we opened a Sears account,bough a window a/c unit, other purchases. We haven't used the card for at least 10+ years. The last payment to Sears was 12-05,they sold it to LVNV 1-06,I have dealt with about 6 of their agencies,debt validation etc. We were stupid and all of the years, we paid Sears,until 12-05,basically minimun payments,finances charges,etc. So we probably paid 12 times over what we charged. Now these CA have added 100+ in interest,etc per month. They are rude,won't validate and keep threatening to sue. This has been goin on since Jan. I have written about 5 DV letters,all they show is the balance and they say they have the right to collect,so now what? ... Karen