Question:   Question: How do debt collection laws work? I’m being harassed by my collectors. How should I handle them?

Answer:      Understanding the process of debt collection and your rights under current laws is very important if you are dealing with debt collectors.

You may have seen TV commercials of people having a good time until the phone rings. The phone brings a sense of dread to the whole scene because debt collectors are calling to request money.

It is an uncomfortable picture to be sure - and sadly, all too common. Of course it is much worse when you find yourself being the one in this position. For many being harassed by debt collectors, the telephone becomes a symbol of fear, a thing to be avoided at all costs.

However, debt isn’t something that can be avoided – sooner or later it must be dealt with.

While it is permissible for a collector to call your home, there are many things they are forbidden to do as regulated by debt collection laws. Most debt collectors are only doing their job, they do provide a needed service. If you owe money, your creditor is entitled to call you in order to find out the status of your payments, or to inform you of steps they may wish to take in order to obtain payment.

The problem starts when debt collectors fail to follow debt collection laws. A single call now and then is normal. However, calls every hour are excessive and should not be tolerated.

Even worse, some collectors will lie in order to play on the emotions of the debtor. Collectors have been known to make threats that police will be called to make an arrest is payment is not received immediately. Unacceptable!

If you dread collection calls because they are exceptionally frequent and the caller bullies you, you do not have to put up with this sort of behavior. Furthermore, collectors are not allowed to call you while you are at work. If your family and friends claim they have been called by your creditors, you have every right to make a complaint.

Debt collection laws were set up to protect consumers. The laws ensure that creditors act responsibly and treat debtors with some sense of dignity.

The best thing to do, of course, is to start sorting out your finances immediately and do whatever is within your power to avoid these kinds of situations in the future.

It is highly important that you do not run from your creditors. If you know that you owe money and are past due in your payments, take ownership of the issue immediately. You should take proactive steps and call your creditors to discuss before they call you.

Taking the initiative will show a creditor that you are aware of the situation and want to work something out to make sure the situation does not get any worse. Call the creditor direct and try to arrange for special payment terms.

If you cannot make an immediate payment, you can try to work out a deal with them based on your available funds. Offer to show your budget to them so they can see in a detailed fashion what your income is and what your expenditures are.

While there are never any guarantees that the creditor will agree to work with you to rewrite the terms of your agreement, it certainly can’t hurt to try.

» What’s the history of credit cards, and how do I distinguish between good debt and bad debt?
Debt is dumb, it should be avoided at all costs. Just look at the history of credit cards. Less than 50 years ago, it would have been shameful to buy on credit.

» Out of all the consumer debt solutions, is consumer credit counseling a good idea and are these agencies for real?
There are some agencies that provide good quality consumer debt solutions. Consumers can find a ton of helpful information here on our website.

» Regarding credit card laws: I co-signed for a credit card. Is there any way to get out of it? What if the other co-signer files bankruptcy?
If the co-signer has filed bankruptcy or is getting ready to file, you should payoff the account in order to avoid having your own credit report damaged.

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