How To Handle Illegal Debt Collection Practices

As many Americans continue to struggle financially in a down economy and a troublesome job market, the field of debt collection is experiencing rapid growth. Creditors are selling and reselling debts to various debt collection agencies at an alarming rate. This can even result in multiple agencies pursuing a single debt against an unsuspecting consumer.

Why Debt Collection is Big Business
According to a story on MSN Money, in 2009, an estimated $110 billion in old, outdated debts will be sold to debt collection agencies. Ten years ago, such a figure would have been utterly unthinkable.

The MSN Money story about debt collection also makes the case that such sales in debt collection are profitable, but not always ethical. A few of the key points are listed below:

Collecting the debts might cost only 25 cents per $100, meaning a large profit margin for debt collection agencies
The large profit margin acts as a motivating factor to relentlessly pursue old debts
Some unscrupulous debt collectors have found that some consumers can be coerced and harassed into paying debt that never belonged to them

How to Spot Illegal Debt Collection Practices
While creditors have a right to pursue money that is owed to them, debt collectors are obligated to pursue the debts in such a way that they do not harass consumers or the consumer’s families and employers.

One of the surest signs that a debt collector is acting against the law, is by simply failing to inform you of your rights, some of which are listed below:

You have a right to dispute a debt, but that must be done promptly and in writing
After initial contact, a debt collector has 5 days to send written notification of your debts, including the amount owed and the creditor(s) to whom the debt is owed.

A personal finance or debt collection lawyer can help you to understand your full rights under the Fair Debt Collection Practices Act. Whocanisue.com can help you find an experienced consumer advocacy attorney in your area to assist you with the complicated nuances of debt collection and the decisions that will affect your financial life for some time.

How to Deal With a Debt Collector
You do not need to – nor should you – stand by as debt collectors harass you into submission. Listed below are a few ways that you can regain some control of the situation and effectively manage your contact with debt collection agencies:

Do not tolerate threatening or abusive language from a debt collector. Debt collectors who use foul language or make false statements about you, your debt or finances are subject to the law, and the harassment might provide the grounds for a lawsuit.

If you are confronted with a debt that either does not belong to you, or is so old that the collection time has long since expired, send a written denial of the debt to the collection agency as promptly as possible, but no more than 30 days from the initial debt notification.

Keep a paper trail by mailing all letters to the debt collection agency via certified mail and making copies of all notifications and your written responses.

Do not give out your personal information to any debt collection agency, including your social security number or bank account numbers.

If you have phone contact with a representative from a collection agency, make sure to get their name and representative number and keep a record of the conversation.

If you are working to pay off the debt, be sure to have written proof of the amount owed and keep a record of all payments made on the debt.

It is important to speak with an attorney who specializes in debt collection defense before making any hasty decisions. Whocanisue.com can help you find an experienced debt collection lawyer in your area to assist you with consumer protection laws and how to deal with debt collection agencies.