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Posted: Fri Mar 31, 2006 6:01 pm Subject: Your rights, cut and dry

Hi everyone!

I see that many of you are still hazy on what exactly your rights are. I hope everybody reads this. Here are your rights:

Privacy and protection. No collector can talk to anyone other than you without your explicit permission. To do so constitutes violation of federal law.

Peace of mind. If you can't or don't want to take their calls at work, your verbal insistence is enough to stop that. To call you at work after you have asked them not to is a violation. Also, if you do not want any telephone correspondence, they should comply to only contact you in writing. To defy a cease comm letter is a violation.

Validation. Delinquent debts consist of three things. Principle, penalties, and interest where applicable. The latter two can be negotiated in a formal settlement agreement between you and the collection agency or original creditor. No creditor or collection agency has the legal right to compound the debt with false fees that make the debt itself grow far out of proportion. To do so is extortion which is a felony.

Notification. If the intent is to garnish your salary, a notification of intent to garnish must be sent to your address one month prior to the initiation of the garnishment, this is the case when federal money is owed. If it is not federal money owed, the original creditor must obtain a judgment from a court of law in order to initiate garnishment. Now, the notification of intent to garnish comes with an application that you can fill out in order to defer the garnishment for six months. What you do is fill out all the necessary information and provide the necessary financial statements to prove your situation.

Negotiation. Not too many of us can just reach into their pants pocket and pull out a four or five figure sum of money. You have the right to negotiate either a settlement of the debt minus the penalities and some of the interest where applicable. Or you can negotiate a payment arrangement based on the size of the debt and the financial information provided by you to the collector or creditor.

Other guidelines are the legal calling hours of 8 am to 9 pm in your time zone, the mini miranda to identify a valid collection attempt instead of an attempt to swindle or a telemarketer. Also, calls made to residences should be spaced out by at least three days, and calls to work only made twice per month.

Any questions so far?

Posted: Fri Mar 31, 2006 8:07 pm Subject:

No questions,that about says it all.Thanks Ari,and may the force be with you. Smile

Posted: Fri Mar 31, 2006 8:15 pm Subject:

Crystal Clear!
and...
Thank you

mwtx · Posted: Fri Mar 31, 2006 8:19 pm Subject:

It makes me wonder if those junk debt buyers could be charged with extortion.

Posted: Fri Mar 31, 2006 8:27 pm Subject:

you're very welcome you guys! And may the force be with you as well. To confirm your wonder, mwtx, you can file a complaint of extortion against the junk debt buyers harassing you. Calculate the balance they present to you. If the penalties are exponential to the original balance, that is extortion. Penalties should only be a percentage ot the debt added, not an exponential growth.

Posted: Fri Mar 31, 2006 8:30 pm Subject:

Do we have an example of this Mini Miranda posted anywhere?

Tim

Posted: Fri Mar 31, 2006 8:34 pm Subject:

Hey Ari..
The negotiation part got me. MUST collectors negotiate? I've had a collector recently tell me that only a full payment would be accepted. It's not a huge amount, only $360, but I would feel that in my budget at this time. I've ignored their demand for a full payment and have been sending regular bi-weekly payments..So far they haven't sent them back, but they haven't contacted me again, either. they told me that if I did not pay in full they would move on to other measures. That sounds evil, doesn't it? Like they're going to break my legs or something.

Posted: Fri Mar 31, 2006 8:34 pm Subject:

This is an attempt to collect a debt and any information obtained will be used for that purpose.

That is the mini miranda. If you don't hear that from the next collector you hear from, call them on it and hang up. They MUST play by the rules exact.

Posted: Fri Mar 31, 2006 8:39 pm Subject:

Finsfan,

If they refuse to negotiate, they are shooting themselves in the foot. You have the right to negotiate, pure and simple. Any collector who refuses, unless this debt is a program overpayment student debt, is not really doing their job.

Since they apparently are accepting your payments, they can't legally take further action against you! Make sure you keep records of your payments, in case they do try to do something stupid, you do have the proof and their complaint will get thrown out of court. As long as your biweekly payments total at least $50 per month, they have nothing to complain about.

Posted: Fri Mar 31, 2006 9:21 pm Subject:

I have never had a collection agency ever read me the mini miranda. Wow, if they call again and they don't read the mini miranda I will nail them to the wall.

Guest · Posted: Fri Mar 31, 2006 9:49 pm Subject:

You said they must space out calls within 3 days...is this just courtesy, or an actual law? Because I have had collectors that I talked to on the phone, and they still call daily, I have one that calls every hour.

mwtx · Posted: Fri Mar 31, 2006 10:47 pm Subject:

State laws differ, but generally collectors cannot call repeatedly (on the same day) with the purpose to annoy.

mwtx · Posted: Fri Mar 31, 2006 11:39 pm Subject:

Jedi

Thanks for your very informative post. I might also add the following for any of those who might be dunned by junk debt purchasers such as Asset Acceptance or LVNV Funding etc:
1. Never pay a dime. This will restart the SOL.
2. Demand validation, competent proof that you are legally obligated to pay them.
3. NEVER call them from your home phone (if they don't know your number already).
4. Only use a P.O. Box, never your street address.
5. NEVER sign for any letter at the Post Office (or at home).
6. If you pay them, it won't help your credit one bit.
7. They say you "owe" $2000? Though bought in bulk, on average they payed perhaps $2 for this debt and are trying to shake you down for the full amount.
8. You are not morally obligated to pay them anything.
9. These firms buy very old debts. If they contact you and offer a settlement, tell them it is out of the SOL and hang up. If you pay a dime it will restart the SOL.
10. On the odd chance that they sue, show up. They hope to get a default judgment (even if out of the SOL). They cannot prove that you have some contractual obligation to them.
11. Sue them for violations of the FDCPA. this is very easy and not expensive in most part of the country. It is worth $1000 per violation to you. (This holds true for any debt collector, not just junk debt buyers).

mwtx · Posted: Fri Mar 31, 2006 11:41 pm Subject:

I forgot to add, only use an unlisted phone number, but still, never phone them from home or they will have your number.

Posted: Fri Mar 31, 2006 11:48 pm Subject:

I have to add something about the mini-miranda...it is not required in every state. Yet.

I spent the last two years of my life working for a junk-debt buyer. A lot of people don't understand what really goes on in that business. I am going to start a thread on it. I hope that my experience can lend a helping hand...

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