Here we will show you how to accomplish more than simply stopping a bill collector's calls. In many instances, mistakes made by bill collectors can not only make them stop calling, but even cause your account to be cleared and closed out. The Consumer Protection Act governs the activities of collection agencies and in-house collection departments. If you can gain a working knowledge of this act, you can use its provisions to turn the tables on bill collectors and beat them at their own game!Rules Collection Agencies Have To Play By
Bill collectors will almost always violate some part of the Consumer Protection Act while handling your case. This is why it is imperative for you to keep good documentation of their contact with you. Often, it takes several steps for them to hang themselves. You must have every inch of the way well documented.
In general, a bill collector may contact you by mail, telephone, telegram or in person. Also, unless otherwise advised, a bill collector can call you seven days a week, between 8 AM and 9 PM local time where you live or work. When calling, a creditor cannot in any way discuss your matters with persons other than you. A bill collector MAY ask about your whereabouts or how to reach you, but, they cannot give information about the reason for their call.
The Consumer Protection Act prohibits bill collectors or creditors from using harassing or abusive practices. Creditors or bill collectors cannot: threaten to use violence or other criminal means to cause you physical harm or harm to your reputation or property, use obscene or profane language, publish your name on a "list of debtors" if you allegedly refuse to pay debts except to a consumer reporting agency such as EXPERIAN, Equifax, or TransUnion, engage you in telephone conversation repeatedly or continuously with the intent to annoy, abuse, or harass you or any other person at the called number, or place a telephone call to you without meaningfully disclosing their identity.
Using The Fair Credit Reporting Act
Now let's show some practical examples of how to use the Fair Credit Reporting Act and the Consumer Protection Act in order to stop collection agency. First, let us go back to the process of stopping a bill collector from calling you. It is important to know that the act does not set forth any time constraints. The act states that if I ask a bill collector, in writing, to stop calling me, my request is valid once they have received the request. Once again, always send these letters certified mail with a return receipt requested.
Many collection agencies and companies with in-house collection departments, especially larger ones, are so swamped these days that it may be several days, or even weeks before your letter makes it into their system. By the time it does, you may have received several more telephone calls from them. If you do, you have a cause of action against them for violation of your rights under the Consumer Protection Act.
Another way to bring a larger collection agency to its knees is by using the clause in the Consumer Protection Acts that states, "A bill collector cannot send mail or telegrams that suggest or show that they are debt collection." Some of the "high volume" collection agencies use impact printing on specially designed envelopes to get their collection message to you. Unfortunately for them, the impact printing, i.e., the collection message, can usually be read from the outside of the envelope.
Contest The Purchase
Another tactic you can use with bill collectors is to "contest the purchase," which simply means that you are claiming something is wrong with the product or service for which they are seeking payment. Some claims you can make are:
• The product or service was ineffective
• Fraud or deceit was involved in the sale
• The product was not delivered or the services were not done on time
• The product or service was defective
Many third-party collectors may not want to get in the middle of these claims and may defer the account back to the company. The company that originally provided the product or service may agree to adjust the bill or accept a settlement payment of a lesser amount to avoid litigation, or they may allow you to return the merchandise for a refund to settle the dispute.
Offer To Return The Merchandise
Another tactic you can use is to offer to return the merchandise. You can redeem yourself by saying, "I can't afford to pay for the merchandise so I'm offering to return it." They will probably argue that it is no good to them used, but, this is a valid offer of settlement on your part. This may work especially well with department stores, or on small consumer credit purchases such as lawn mowers, furniture, appliances.
This tactic is very effective with automobile credit companies or finance companies that hold a contract on a boat or motor home. This tactic can be used to bargain for a "skipped payment" arrangement or the renegotiation of a loan or lease agreement. Simply stated -- they do not want the merchandise back!
In most cases, if you threaten to return the car, boat, or motor home to the lot and hand over the keys, they will back down and negotiate. This is because many contracts were executed with little or no down payment; in plain English the car is worth far less than you owe. You are "underneath it."
Also, if they repossess, they have to pay repossession fees, storage, fix-up fees, auction fees, and the legal fees that will be required to come after you. IT IS NOT COST EFFECTIVE FOR THEM TO DO SO. They would rather negotiate a skipped payment, or a revised payment schedule with lower payments that you can follow. Remember — they do not want the merchandise back!
Remedies Creditors Can Use Against You
Creditors may take one of two legal actions against you. They may file a small claim against you seeking a judgment for any amount up to the maximum allowed by the small claims court (usually $1500 to $2500).They also may file a complaint or a suit against you seeking a judgment in their favor. After a creditor is awarded a judgment against you, they may seek to lien your assets or attach you wages through wage garnishment.
If you ever receive a letter from a creditor seeking to get a judgment against you, go to the hearing. If you do not go, the judgment is automatically awarded against you. At least if you show up and explain your situation, the judge may be lenient with you and you may come out of the situation owing less than you did to begin with.
For more information on how to erase collection accounts altogether, visit www.RepairCreditTrauma.com
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