Stop Bill Collectors!

I can personally account for the times when a telemarketer called me and used a fake name.  The guy could barely speak English and he told me that his name was Jeff.  Yeah, right.  Unfortunately, they have every right to do this.  Telemarketers can conceal their names or even refuse to give their identity to you in order to protect their company’s assets, namely from getting sued.
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You’re unable to pay even the minimum balance on your bill due to unemployment, or other reason beyond your control. What’s next? A lot of people email me, asking “what happens if I simply do not pay my bill?” A few things could happen.

1. Your credit score may be severely impacted
2. You might be sued by your credit card company
3. A credit collection agency may take over your overdue balance

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Ah, nothing like the good ole’ switch-a-roo to stop bill collector calls! I mentioned in a previous article that the best way to stop creditors is to get a prepaid cell phone (read this article to find out why prepaid cell phones will stop bill collector calls dead). This method, the good ole’ switch-a-roo, will cost you only a few bucks a month (isn’t that worth it for peace and quiet?).
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As someone in debt, you have more legal rights than you could possibly imagine.  In fact, debt collectors are extremely limited in how they can contact you.  They are also greatly restricted on how they can get money out of you as well. Did you know that debt collectors can’t contact you at work, if you tell them that you aren’t allowed phone calls at work? That’s just one right you have: there are many more.
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The Cease and Desist letter, otherwise known as the C&D, is quite possibly the most powerful tool available in your arsenal of tactics against debt collectors.  It is one of the most simple ideas yet, it throws a collector in a heap of legal bondage that guarantees they will never contact you again.
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Sometimes, you just have to get a little humorous with your debt collectors. A little laughter is good for the mind, body, and soul every once in a while, especially if you’re feeling overwhelmed by phone calls. If you’ve followed my advice to send a cease and desist letter, relief from harassing debt collectors is likely a few days away. In the meantime, why not have a little fun to lighten your mood?
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The Fair Debt Collection Practices Act covers your rights as a consumer in debt.  However, this is not your only weapon in your anti bill collector arsenal. Debt collectors can only come after you for a set time period, until your debt expires.  It sounds too good to be true, but it isn’t.
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If you’re wondering how to stop bill collectors, you could try moving. Not by moving to a different house, but just making it look like you moved, by changing your address. Here’s how to get bill collectors chasing their tails with a fake address.
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Avoiding debt collectors is hard enough.  Avoiding unannounced bank withdrawals from creditors after your cash (yes, it is legal for them to dip into your bank account) is a whole other issue.  So, what do you do about it?  Simple: bank at home! Banking at home will keep your cash safe from creditors.

Banking at home is commonly called bedroom banking.  The best part is that the only things you’ll need to start the First Local Bank of you is a safe or lock-box and an active checking account with a balance of $10.00.

Here’s how the process works for your paycheck:

1. Take your paycheck to the bank. Withdraw the $10 already in your account. The reason for this step is that if a creditor has put a hold on your account, you won’t be able to withdraw the $10. If you don’t do this step and deposit your paycheck into your account, the bank is legally required to send your entire paycheck to your creditors. If you can withdraw the $10, you know your checking account is safe. Why not “cash” the check at the bank? Because what actually happens is that the check is deposited into your account and the bank loans you the amount of the check until the funds come in. They are taking a small risk that they may not get paid, but they do it to keep customers appeased.
2. Deposit the $10 back into your bank account and cash your paycheck.  Of course, you could cash the paycheck at Wal Mart or your local grocery store for about $3-$5, but why not buy yourself lunch with that money?
3. Place that money inside your cash vault or lock-box.  Remember to keep a log sheet of all of the money that you place in along with the money that you take out in order to keep a balanced cash vault.

The reason that your paycheck can become available immediately is because the bank understands that there is a very high chance that the funds will be in your employer’s payroll account to cover the “loan” that the bank gives you.  When you deposit a paycheck that is drawn on a different bank, your bank gives you a loan as they are unable to immediately withdrawal the funds from your employer’s payroll account.  Once the check clears, the bank keeps the money and thus the “loan” that was given to you is paid off.

If you are given a personal check that is drawn on a different bank, take your check to the bank and deposit it.  Ask the teller if he or she could give you an estimate on when the check will clear.  Credit unions usually make funds available immediately under a certain amount (up to about $1,000). Usually, it only takes a few days at the most for most banks. Check your account status a few times per day. As soon as the check clears, withdrawal it immediately and follow the same procedures above for depositing it into your cash vault.

This is the easiest way to keep people out of your bank account, especially if you have a civil judgement against you.  They won’t be able to withdrawal funds that aren’t there, keeping your finances secure for the time being.

I wrote in a previous article how dismayed I was that debtor’s prisons are actually alive and kicking in the USA in 2010. They don’t call them debtor’s prisons any more–they call them federal prisons or state prisons. There are four ways you can be sent to a debtor’s prison in the United States, for a federal debt, for child support,  for contempt of court regarding a judgment, for not paying state fines, and if a judge decides that you have the means to pay any debt (including credit cards and bank loans) but just aren’t paying up. That means a judge might decide that paying your debts is more important than paying your mortgage.
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