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How to stop bill collectors from calling you

By Debt Prison on February 5, 2009

This website does not administer legal or financial advice. The contents of this website are my opinions on collection agencies and how to deal with them. Nothing on this website should be interpreted as legal advice or council. No opinions on this website should be used to replace the advice of your financial advisor or your legal council.

How do you stop a bill collector from calling you constantly… especially if the person they want to talk to doesn’t even live there? Such is the case with FSK over at FSK’s Guide to Reality. It seems the collection agency wants to get in touch with FSK’s sister, and she doesn’t live with FSK. Despite telling them repeatedly that she doesn’t live there, they continue the constant bombardment of phone calls. The interesting thing about this situation is that the collection agency is not calling a number where they can reach the debtor. There are ways to stop the phone calls – but you have to get serious with them. You should be able to stop the phone calls without getting a lawyer involved.

To file a complaint with FTC regarding a collection agency click here or call toll free at 1-877-FTC-HELP.

A bill collector has to stop calling your place of employment if you request them to – this request should be done verbally and in writing. Why are they calling despite the verbal request to stop? This is harassment and harassment is what pays their bills! They’re hoping FSK (or anybody) will pay this debt to end the phone calls.

I have an amusing anecdote about a debt collector. My sister gave my parent’s phone number on a credit application, or they somehow got it. According to my sister, she legitimately canceled a service but they kept billing her anyway. Now, a collection agency owns the debt. They’re using a dirty tactic you haven’t mentioned on your website.

The debt collector calls *ALL THE TIME*. I told them “She doesn’t live here anymore. Please stop calling this number.” Whenever I say “Please stop calling”, they immediately disconnect the phone call, pretending they didn’t hear. The debt appears to keep getting passed to different collection agencies, or the agency keeps trying different tactics.

If I tell Agency A “Please stop calling”, and the debt is sold to Agency B, then does my “Please stop calling” request still count?

I’m pretty sure this falls under “abusive debt collection practices”. However, it isn’t practical to sue. The person they’re calling *DOES NOT LIVE HERE*, and they hang up the phone whenever I say “She doesn’t live here” or “Please stop calling”. By dropping the call and pretending to not hear, they’re probably technically not violating the law. They have plausible deniability “I never heard FSK say ‘Please stop calling!’”

Well let’s see what we can come up with for this nasty, nasty problem. First of all, every time the debt moves to another collection agency you have to start all over again with any requests… just as though they are the first collector to get their hands on your debt. This means writing ‘cease and desist’ letters and recording/documenting their calls (if you want to sue them).

There are a couple of options here that will work for FSK and these pesky collectors. The first is to identify who the collector is. One way to do that is to ask them. Now there’s only certain information that they’ll give to someone, over the phone, whom is not the debtor. However, according to the Fair Debt Collection Practices Act the collector is required, if you ask them, to identify their employer.

(1) identify himself, state that he is confirming or correcting location information concerning the consumer, and, only if expressly requested, identify his employer;

Cease and Desist Letter

You can also request their address, but there is nothing in the FDCPA that requires them to provide you with the address. You could ask them what state they are calling from and then look the address up. You want their address so you can write them a ‘limited cease and desist’ letter. The letter should be sent registered U.S. mail with return receipt. This way you have proof that they received the letter.

I would like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be documented and considered harassment. All future communications with me must be done in writing and sent to the address noted in this letter by USPS.

Now bear in mind that this letter would only by legal if it is signed by the debtor. This letter should slow the phone calls down or eliminate them. Another way to get their address would be for FSK to ask his sister to get a free copy of her credit report at http://annualcreditreport.com. The collection agency’s name and address may be visible on the credit report.

Documenting the Calls

If they continue to call you can document the calls using a program like “phone tray” which works by plugging your phone line into the back of a pc. Phone Tray then works like a caller i.d., documenting all calls and call times in a format that can be printed off. Now you can document all of their calls on paper. Also, you can purchase a phone recorder like this one. It’s around $45.00 and has a variety of uses besides recording bill collectors. Some states require you to inform the other party that the call is being recorded. Twelve states require, under most circumstances, the consent of all parties to a conversation. Those jurisdictions are California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, Pennsylvania and Washington.

You can answer the calls and tell them to stop calling and record the conversations. At this point you should have documented the calls on paper and possibly have phone recordings which clearly demonstrate these facts.

At this point, after ten or so calls, I would make copies of the caller i.d. archive and audio of the phone conversations. Now you need to send these copies to the collection agency using registered mail. You would also attach a letter which explains that the collection agency has continued calling despite requests to stop. You consider this harassment and hope to avoid a legal suit against their office if they will simply stop calling your home.

This should stop the calls and if not you can always opt to have a law office write letters on your behalf.

If the debt gets passed to another collection agency then this process starts all over.

Discuss this article and meet new people at Debt Prison Forums.

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Collection Agency Scare Tactic: We’ll Get Your Driver’s License Suspended

By Debt Prison on January 4, 2009

Collection agencies never seem to have enough tricks up their sleeves for scheming and lying to debtors. Most recently, it was brought to my attention by a reader that a collection agency had threatened to have his Washington State Driver’s License suspended if he didn’t satisfy a debt. Considering the circumstances of the situation, I can see how such a threat may have seemed possible. But was this a lie – or can a collector use a lawyer to contact the State and suspend your license?

In some states driving a vehicle without insurance is grounds for license suspension, fines, or even a suspended registration. In the following case, the debtor wasn’t driving the vehicle and therefore such legislation shouldn’t apply to him. However, the damaged parties have the option of suing the owner of the vehicle for damages, since he failed to maintain liability insurance on the vehicle.

I live in Washington State. My girlfriend rear ended a person (I was the registered owner of the car and was not driving. I know that doesn’t matter) But I didn’t have insurance on the car at the time… Almost a year has passed now and a collection agency is saying I owe $21,000 dollars… I have asked for validation for what they claim I owe. All they sent me was an estimate for car repairs (totaled $350 dollars). This is not very much damage to a car. I just don’t see how this could have done $21,000 dollars in medical bills to a car that was barley damaged ..

I have talked with the people that she hit and they told me that their medical bills didn’t exceed $4000 dollars. Anyway the creditor says they can’t give me the info on what medial expenses were paid. So how can they prove I owe that much money? Also, they say they are going to have my drivers licenses suspended if I don’t pay. Can they do this in Washington State?

I can’t afford a lawyer right now and I’m stressed out. Any advice?

There are many layers to this particular situation. First of all, the collection agency should provide clear answers on paper, showing from where the charges originate. Their failure to produce any paperwork related to the $21,000 is a good enough reason for the debtor not to pay this bill. Who in their right mind would pay anything like this? In this case the collection agency was assigned or bought the debt from an insurance company. Therefore it goes without saying that the insurance company had all of the necessary paperwork related to the claim. The collection agency’s refusal to produce validation means they are either trying to drive up their percentage of a settlement or they simply don’t have the necessary paperwork outlining the charges (they bought a debt with insufficient paperwork).

Without the necessary paperwork the collection agency would be unable to achieve a judgment via civil court. This is why the collection agency resorted to scare tactics. By threatening to have the debtors Driver’s License suspended, the collector hopes to squeeze some money from the debtor. But since the owner of the vehicle wasn’t driving the car (his girlfriend was) the collector can only seek to force the owner to pay the damages. It’s the girlfriend who stood to possibly have her Driver’s License suspended.

If the State was going to suspend the license, they would have done so after their initial investigation at the scene of the accident. The collection agency can only pursue this matter in civil court as an attempt to collect a debt. Thanks to their empty threats and faulty paperwork… I suggested this debtor ignore them for the time being. However, a clean credit report may require the work of a law office writing letters on behalf of the debtor.

Discuss this article and meet new people at Debt Prison Forums.

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Debt past the Statute of Limitations and Collection Agency still suing?

By Debt Prison on December 8, 2008

If your debt is past the Statute of Limitations a collection agency or creditor can still sue you in civil court as an attempt to obtain a judgment. So why does the Statute of Limitations (SOL) exist and how can you use it towards your defense? If you have any questions pertaining to this article please leave a comment at the end of this page. See also, Debt Prison related article Sample Debt Validation Letter.

A statute of limitations (pertaining to debt) is a statute in our legal system that sets forth the maximum period of time, after certain events (default on payments), that legal proceedings based on those events may be initiated. The SOL for defaulted debt will vary state by state which you can look up by clicking here. The SOL can vary wildly… in New York it’s 6 years but in Ohio it’s 15 years (sucks to be in Ohio). The date on which you miss your first payment starts the clock on the SOL. For example, in Texas the SOL for defaulted debts is four years. So if you miss your first payment on August 30, 2008 – your creditor has until August 30, 2012 to file suit and still be within the SOL. So why would a collection agency or creditor file suit on defaulted debt after the SOL has expired?

You need to show up in court to defend yourself

Though the debt may be past the SOL… someone needs to show up in court and explain that to the judge. That someone should be you. So if your debt is past the SOL and you get served a summons for a civil suit from a collection agency – just make sure you walk into court on the assigned day and explain to the judge why the debt is past the SOL. The judge will then dismiss the case. It would be a good idea to take any paperwork into court with you to help support your defense.

If you fail to show up in court and defend yourself the collection agency will likely win a default judgment. So you want to make sure you show up in court to prevent the default judgment. Also, it would be a good idea to converse with the collection agency and try and convince them to drop the suit before the court date. Since their appearing in court and having their case dismissed would be a complete waste of their time…. not to mention yours. Sometimes it’s worth a phone conversation to convince the plaintiff that their case won’t stand up in court and therefore should be dropped.

Can the collection agency still sell my debt to another agency?

Selling debt is becoming a world wide industry. Junk debt buyers are buying up debts on which the SOL has expired and even debt that was absolved due to bankrtupcy. Why would a company buy such debt? Because many people will become intimidated and pay the debt. Most people simply don’t know their rights.

But can’t the clock on the SOL get reset?

Yes…. the clock on the Statute of Limitations can be reset by a couple of different circumstances. First, if you make any payment (no matter how small) on the defaulted debt the clock on the SOL will be reset. So in Texas the collection agency would then have a fresh four years to drag you into court to obtain a judgment. Also, in some states if you acknowledge, over the telephone, that you owe the debt or that you will try and make a payment – the SOL just got reset! So be careful what you say over the phone.

Discuss this article and meet new people at Debt Prison Forums.

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Should Granny pay the Collection Agency?

By Debt Prison on November 17, 2008

A reader at How to Deal with Collection Agencies asks if her grandmother should continue trying to make payments on a debt sold to a collection agency.

I have a question; my grandmother had an account that has now been turned over to collections. Just by not knowing what else to do because they are very rude to her she has started paying on the debt, but they continue to charge interest on the account and they tell her they cannot send her payment information and such on the account. They said she could pay on it 6 years and still not have interest paid off?? She always pays her bills and this got lost somewhere 3 to 4 years ago when she was sick with her heart? Is this right, and what can we do if anything…..

Julie

Debt Prison response…

Hey Julie,

First off, your bill should state the principal amount of the debt as well as the interest rate. The problem here (and I’m making an assumption) is that she doesn’t have the money each month to make large payments. As a result, she is caught in a cycle of basically paying the interest on the principal each month. Is there anything she could sell to pay this debt off?

Now it seems that she owes the money and therefore wants to make good on it. However, the problem is that these collection vultures are getting rich off the interest fees and making it impossible for her to satisfy the debt. After all this is how they make their money. But it sounds like your grandmother is easy prey for these vultures and they aim to feast!

I would demand all interest charges be dropped. I would inform them that I would make a monthly payment against the principal only. They must agree to these terms in writing. If they don’t want to agree to the terms… No problem, they don’t get another dime. They could then pursue a judgment against your grandmother via civil court. In which case she (and you) could simply go and inform the judge that it was impossible to satisfy this debt due to the outrageous interest charges. Likely such actions would put an end to the interest charges and make it easier for grandmother to finish paying this thing off while she’s still young. Either way she’d have to conform to the terms of the judgment.

Also, if she makes little or no income she can’t be collected on. There’s a federal minimum (and if she makes under it) she can’t be touched. They could still get a judgment, they just couldn’t collect it.

Another option is to continue to pay what she can on the debt each month. We all need to pay our debts… I’m not debating that. But what I am debating are outrageous interest charges and fees. Collection Agencies often tack on as much money in fees and interest as they possibly can. It’s your job to inform them you won’t pay it…

Also, another option is to seek legal advice from a local lawyer you trust. It doesn’t cost much and could possibly save her thousands of dollars and fewer sleepless nights.

If more questions feel free to ask.

Good Luck!!!

What are the restrictions on wage garnishment?

The amount of pay subject to garnishment is based on an employee’s “disposable earnings,” which is the amount left after legally required deductions are made. Examples of such deductions include federal, state, and local taxes, the employee’s share of State Unemployment Insurance and Social Security. It also includes withholdings for employee retirement systems required by law.

Deductions not required by law—such as those for voluntary wage assignments, union dues, health and life insurance, contributions to charitable causes, purchases of savings bonds, retirement plan contributions (except those required by law) and payments to employers for payroll advances or purchases of merchandise—usually may not be subtracted from gross earnings when calculating disposable earnings under the CCPA.

The law sets the maximum amount that may be garnished in any workweek or pay period, regardless of the number of garnishment orders received by the employer. For ordinary garnishments (i.e., those not for support, bankruptcy, or any state or federal tax), the weekly amount may not exceed the lesser of two figures: 25 percent of the employee’s disposable earnings, or the amount by which an employee’s disposable earnings are greater than 30 times the federal minimum wage (currently $6.55 an hour).

For illustration, if the pay period is weekly and disposable earnings are $196.50 ($6.55 × 30) or less, there can be no garnishment. If disposable earnings are more than $196.50 but less than $262.00 ($6.55 × 40), the amount above $196.50 can be garnished. A maximum of 25 percent can be garnished, if disposable income earnings are $262.00 or more. When pay periods cover more than one week, multiples of the weekly restrictions must be used to calculate the maximum amounts that may be garnished. The table and examples at the end of this fact sheet illustrate these amounts.

What about child support and alimony?

Specific restrictions apply to court orders for child support or alimony. The garnishment law allows up to 50 percent of a worker’s disposable earnings to be garnished for these purposes if the worker is supporting another spouse or child, or up to 60 percent if the worker is not. An additional 5 percent may be garnished for support payments more than l2 weeks in arrears.

Are there any exceptions to the law?

The wage garnishment law specifies that the garnishment restrictions do not apply to certain bankruptcy court orders, or to debts due for federal or state taxes.

If a state wage garnishment law differs from the CCPA, the law resulting in the smaller garnishment must be observed.

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