Have debt collectors started calling you? Are you wondering how to stop debt collectors from contacting you?
If so, don’t stress – we can help. Here’s what to do…
How to Stop Debt Collectors: Step 1
Sometimes the best option is to not answer the phone to ensure they contact by mail. However, if you pick up the phone when a collector calls about a debt, the first thing to do is to find out who you’re talking to.
Get the name of the person, company name, address and phone number. But don’t volunteer any information of your own.You don’t even have to confirm your name. This includes correcting mistakes like a wrong address or phone number. Don’t discuss the debt at all!
If you say the wrong thing, it could work against you.Say as little as possible beyond asking for the collector’s info. If the collector won’t provide it, that’s a red flag that you may be dealing with a scammer.
*Also be sure to make a note of the day and time they called (They’re not allowed to call before 8 a.m. or after 9 p.m. All calls must stop when requested by Certified Mail.)
After the First Call
If you want to know how much information the debt collector has about the debt…
Ask the original creditor whether they use an in-house collection department, hired a collection agency, or sold the debt to a collector.
The type of collector can have a lot to do with the amount of information the collector has about the debt. In-house collectors should have all the details. Collection agencies may have less information and debt buyers the least of all.
How to Stop Debt Collectors: Step 2
What’s Next?
You should receive a written communication from the collector within 5 days from the first call, but even if you don’t…
The next step is to send a debt dispute letter, also called a verification letter, to the address you got from the caller.
You should do this within 30 days of first contact. If you don’t respond within this time, the collector can assume the debt is valid and can continue contacting you about it.
Sending the dispute letter can sometimes end the matter.
This is especially true if the collection effort is by a scammer, or by a debt buyer that has no documentation that you actually owe the debt. In either of these cases, you may never hear about it again.
To ensure you have a record of the letter, keep a copy and send it by a method that tracks the letter and shows it was delivered.
In All Other Cases
Once the collector has received the dispute letter, the agency has to stop contacting you, at least temporarily.
They can resume contacting you after they send a debt validation letter. The basic information in their validation letter could also have been provided in the initial phone calls. If it’s not, the collector has five days to get you the details in writing.
If they don’t, you have a legal claim against the collector.
What Info Will Their Validation Letter Contain?
The validation letter is supposed to document that you owe the money. This could consist of a bill for the original purchase or a copy of a court judgment confirming the debt—the law is vague about precisely what is required here.
Oftentimes, the validation letter may consist of little or nothing that truly proves you owe the debt. And this is the linchpin.
If the collector has little or no documentation, again, this may be the last you hear of it.
Know Your FDCPA Rights
The main law regulating debt collectors is the Fair Debt Collection Practices Act (FDCPA), a federal statute.
The law is enforced by the Federal Trade Commission and the Consumer Financial Protection Bureau (CFPB).
It covers collection efforts for many types of consumer debts, including credit cards, car loans, mortgages, student loans and medical loans, (just not business debts).
The FDCPA blocks collectors from calling you at home at night or at work if you can’t take calls then.
It doesn’t specifically restrict the number of times you can be called, so you may get contacted many times a day. However, it prohibits harassment and threats of physical violence or the use of obscene or profane language.
Collectors can’t tell other people about the debt they’re trying to collect. This includes printing a notice that they’re trying to collect a debt on envelopes they send you. They can’t lie, or tell you you owe more than the actual debt or pretend to be a law enforcement officer and threaten to arrest you. They can’t claim that they’ll take you to court unless they intend to.
Does Debt Expire?
A debt that has exceeded the statute of limitations is called a time-barred debt. If a debt gets too old, one can’t be forced to pay it.
Different states have different rules, but it’s generally three to ten years (student loan debt may be up to 20 years). Check your state’s rule by contacting your state attorney general.
While borrower can’t be forced to pay a time-barred debt, that doesn’t mean they won’t still try…
A debt collector can keep trying to collect a time-barred debt. And often do.
To find out if a debt is time barred, get the date the debt was incurred from the collector. Be careful not to say anything in writing or orally that may indicate you acknowledge the debt. That could cause the timer to restart.
Debt collectors commonly try to collect money from people by mistake, who don’t think they owe it or when it’s past the statute of limitations.
If this happens to you, there’s a debt removal process set up for you to derail the collection effort and laws to protect you from mistreatment throughout this process. If broken, you can complain to the CFPB’s complaint hotline.
Don’t think that you’re out of options just because they didn’t share all of them with you…
Want Help Learning How to Stop Debt Collectors & Erasing Your Debt?
Although it may seem futile to go up against a pushy and demanding collector, the fact is you can erase debts & win!
You don’t have to remain in debt…
Isn’t it time to use these laws to your advantage?
Erase the Debt with Debt Removal Secrets
Just listen to Jane’s experience with removing her credit card debt.
Ever wonder if debt collectors are allowed to contact others in order to try and reach you? We’ll be sharing this & much more in tomorrow’s email.
Your friends in finance,
Private Wealth Academy
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