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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If you have been keeping up with this blog, you have probably already read that debt collectors have a lot of federal regulations that they must adhere to.  One of them is the times in which they can call you, either at home or at work.

According to the Fair Debt Collection Practices Act, or FDCPA, a debt collector can only call you between the hours of 8AM and 9PM, your local time.

That may seem simple enough, but wait, there’s more!  Did you know that you can actually tell a debt collector when and where they can call you?  Amazing, isn’t it?

According to federal law, a debt collector may not call you at your place of employment if you tell them that they are not allowed to do so.  You can tell them at any time and they must adhere to your request.  If they don’t, you are within the full legal limits to drag their collecting butts to court!

Also, just because a debt collector can call you between a certain time period does not mean that they can call you at any time  you deem as inconvenient. All you have to do is tell a debt collector that the times they are calling you are highly inconvenient and that if they must call you, you prefer them to call within a certain block of time so that you may answer.

Here’s the best part.  Tell them that the only convenient time for you is at a time that is within the legal limits but also while you will be at work (without telling them you will be at work, of course).  You can actually manipulate the law into working for you by dictating to the creditor exactly when and where they can call you.  Good news is that it is all legal!

The term psychology has come up several times in previous posts, but in reality, psychology is what it’s all about.  You need to use your thinking power in order to fool and manipulate the collection agencies into doing exactly what you want them to do and not the other way around.  The nicest element about all of these laws is that it deals out great power with regards to the debtor.

A famous man once said “with great power comes great responsibility.”  You have the great power that has been given to you by the federal government.  Given that power, you now have a great responsibility to make the collection agencies work for you.

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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Well, not exactly a body double, though that would be fun.  What we are talking about here is actually an alias.  There is nothing wrong or illegal about creating an email address under a false name or providing a phone number that does not belong to you.  Furthermore, nothing is stopping you from providing a false address either.  All in all, you can actually create a “second you” to provide to collection companies in order to fool them about your whereabouts and who you really are.

I would put money on the notion that hardly anyone calls their collection agency and updates them with their personal information.  In fact, that is quite the opposite of what basically everyone would want to do.  But what if you could do this without having to worry?

Shock your debt collector the next time they call by informing them that you have a few changes that you need to make to your personal information.  Inform them that your phone number has changed, as well as your address, email, and place of employment.

Tell them that within the next few days, the address and phone number they currently have will be occupied by a new resident and that you want to update them with your new information so that they have an easier time reaching you.  Not only will you get an audible gasp, but you will probably have one confused collector on the other end of that phone!

Confusing people, especially debt collectors, can be a tricky business.  In fact, most debt collectors are trained to spot inaccuracies in what their debtor is telling them.  So in order to combat this, you need to really be on the ball.

Mind your speaking habits and make sure to avoid verbal pauses such as “um” and “uh.”  Again, you need to be clear and concise when lying to a debt collector.  Make sure you have your false information written down in case they ask you to read it back to them.

Another way to go about this would be to inform your collection agency that your name has changed due to other legal reasons.  Not only would they have all of the false information, but they would also have a false name as well.  This is especially useful because it further complicates their databases that they have on you, making it harder to track you down once they realized their mistake.

There are too many people in debt today that have no idea what to do if a debt collector starts harassing them.  Furthermore, these same people would have no clue on how to go about reporting them to the authorities.  But, it’s not their fault.  Honestly, debt collectors can throw phrases at you that will make you think that the law is not on your side.  In reality, you have most of the weight where debt collection law is concerned.

If you suspect that a debt collector or agency is violating the law or being coercive or deceptive with you, then you need to report them to the proper authorities immediately.  In this case, you would report them to the Federal Trade Commission, for FTC for short.

The FTC operates a page on their website (www.ftc.gov) that is dedicated to reporting creditors who are harassing or deceiving you.  But, you simply cannot get off the phone with a harassing debt collector and report them.  You need to get some more information before you proceed with your claim.

Here are a few tips to help extract the necessary information out of the debt collector or agency:

1. Always have a pen and paper ready when a debt collector calls.  As the phone is ringing, jot down the date, time, and phone number on your caller ID.
2. Get the name and physical location of the debt collection agency that is calling you.
3. Get the name and/or operator ID number of the collector that is calling you.
4. Inform the debt collector that their practices are unfair and/or illegal and that you will be reporting them.

Now, you need to work this information into the conversation lightly.  If a debt collector is aware that he or she is doing something illegal and they suspect you are trying to gather information about them, they will most likely hang up or refuse to give you the information.

What you need to do is play along with them.  Gradually work the elements above into the conversation but do it passively.  Your goal is to obtain as much information as possible without the debt collector catching onto what you are doing.

You can still file a claim with the FTC if you don’t have any of the information above, however, the less information you have the longer it will take the FTC to take proper legal action.

Once you have all of your information jotted down, head to the FTC’s website and file a claim.  Usually, the FTC will give you a phone call or send you an email with the status of your complaint.  If you have not heard from them in a while, you can call their toll-free hotline at 1-877-382-4357.

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). However, if you can’t pay your bills right now, it’s likely that you don’t have the cash for a cell phone. 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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The previous post “Know Your Rights” informed you about the basics of the rights that you are entitled to as a consumer in debt.  By now, you have checked out the FTC’s website on all of the nitty-gritty details on debt collection.  And hopefully the synapses in your brain started to form, giving you super debt collector fighting strength!

Have you ever thought about what it would be like to walk into the collectors office as they are calling you?  Pretty empowering thought, isn’t it?  Personally, I would smack them over the head with a telephone, but then again that would probably land me in jail.  Therefore, physical violence doesn’t work as you can probably imagine.  So, what is another sure-fire way to show a debt collector that you mean business?  Inform them that you are informed!

In all reality, someone who can just memorize random facts is unworthy of intellectual respect.  On the other hand, someone who can utilize their knowledge and apply it to a real-life situation deserves a gold medal!  So, why not use your new knowledge on debt collection law appropriately?

Let’s be honest here: someone who is trying to coerce you will become afraid of you when you fire legislation and law references at them.  Remember, they prey on you, the uninformed consumer.  But you are no uninformed sheep, no, you are an intellectual powerhouse!

First, create a list of all of the specific laws that protect you from debt collectors.  This list can range from the “no harassment” law to the “no calls at work” law.  Even include debt collection laws that may not apply to you.  Your goal is to make the list extremely long; longer than a page will do just fine.

The next time a debt collector calls you, stop them before they can speak.  Ask them to read a list of all of your rights as a consumer in debt.  9 times out of 10, they will either laugh or have no idea what to say, as they themselves are sheep and are completely uneducated with regards to the law.

If they fail to read you your rights, tell them that you are going to read them yourself so that they are clear as to what they can do and say to you.  Begin to read your rights, one by one, right off the paper.  Do not stop reading your rights, even if they try and interrupt you.  Just keep going until they either hang up or you finish.  If you have finished and they are sill on the line with you, ask them if you need to clarify anything with them.  If not, then tell them that you cannot pay and hang up.

Remember, a debt collector is only worth your time if you can inform them of the law.  After that, you have no need to speak to them.

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.

Here are a few tips to get you started:

1. A debt collector may never harass you at any point in time, ever.
2. A debt collector cannot be deceptive with you under any circumstance (i.e. “You will go to jail if you don’t pay).
3. If you tell a debt collector not to contact you at work, they may never do it again for any reason.
4. The only other person a debt collector can contact regarding your debt is your spouse and your attorney.
5. A debt collector may never use a false company name in order to try and obtain your debt.

Though these are the basics, they cover a good amount of practices that are widely recognized as unfair.  And unfortunately for you, collection agencies prey on people who are unfamiliar with the law.

But why would a collector become so hell-bent on extracting your debt out of you?  Simple.  Because they work off a commission.  A debt collector gets a percentage of your total debt if they are able to successfully extract it from you.  And if you think about it, that can be a very large sum of money depending upon the amount of debt that you are in.  No wonder why they are so pesky!

The Federal Trade Commission regulates the policies and practices of debt collection in the United States.  They are the oversight for the collectors and agencies in this country.  Unfortunately, many debt collection agencies who harass do not get reported at all or they are reported improperly.  Personally, I have called the police on a debt collector a few years ago.  I later found out that doing this will land you with a $25 false report fine and a warning.  It took me quite some time to realize that I needed to report this abusive behavior to the FTC.

Don’t fall into the same mistake I made.  Take a minute or two after the phone call to cool yourself down.  Once you feel your emotions are relatively stable, log onto the FTC’s website at www.ftc.gov.  From there, click on the consumer protection tab.  You can find a boatload of information that was not mentioned here and the specifics on exactly what a debt collector can and cannot do.

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.

People in debt do not realize the huge amount of power that has been bestowed upon them by the federal government in regards to their debt.  This power not only protects people in debt from being harassed, but it also gives the average citizen a medium in which to bring about a harassment lawsuit.

However, the C&D letter remains the utmost of importance with respect to tools.  Basically, the C&D is a letter drafted by yourself or your attorney on behalf of yourself that states that a company must immediately “cease and desist” what they are doing; whether it is harassment, phone calls, or other unwanted behavior.

The best part is that if you send your debt collector(s) a C&D, they are legally barred from having any further contact with you.  The only circumstance in which they may contact you after the C&D letter has been issued is if they are telling you that no further contact will be initiated or the credit company is planning on brining a lawsuit against you.  Other than that, it is illegal and considered harassment if they call you again, ever!

If they do contact you again after you have served them with a C&D to collect money, then you should immediately report them to the Federal Trade Commission (FTC; www.ftc.gov).  Once the FTC receives the report, proper legal action will ensue based on federal regulations.

Please note that regardless of what occurs, your debt will not go away.  However, if you happen to win a lawsuit against your collector, you can use that money to pay off a good portion of your debts.  You may be rewarded up to $1000 plus court and attorney fees.  If you get together a group of people who have the same issues with one particular debt collection agency, you may file a class-action lawsuit.  The greatest possible reward is $500,000 or 1% of the company’s net worth, whichever amount is the least of the two.

Do not underestimate the power of a C&D letter.  Taking an hour to write it may save you a lot of time, energy, and emotional stress.  Plus, it might even get you some free money!  Can’t beat that now can you?

Sometimes, you just have to get a little humorous with your debt collectors.  Seriously!  A little laughter is good for the mind, body, and soul every once in a while.

Next time your debt collector or agency calls, fool with them on the phone.  Not only is it fun, but it’s a sharp and witty way to score a few bonus points against the opposition.  There is nothing better than hearing a confused collector’s voice on the other end of the line, scrambling for her words, trying to make sense of the conversation at hand.

Here’s a few examples of what you can do:

1. Tell them that they just called a crime scene and that they may need to come into the “station” for further questioning.
2. Tell them that you are your own grieving father/mother and that you tragically passed away last night.
3. Tell them that you are not who they say you are.  ”I’m not John Smith.  You have the wrong number!”
4. Say nothing but the word “Yes” until they catch on, eventually hanging up on you.
5. Tell them that you are the new occupants of the house and that the person they’re looking for actually moved to Oakland, California a few days ago.

This all sounds cute and borderline childish, but it works.  Every time.  In fact, numbers 2, 3, and 5 might work the best for you.  Why?  Because you are fooling them into thinking that you do not either 1. exist anymore or 2. live at your current residence.

All kidding aside, stories of people telling their creditors that the person they are looking for is deceased or not living in the home anymore surface all the time; the best part is that they work!  If you tell a creditor that the person they are looking for no longer exists, they are no longer legally allowed to call your residence because that would be harassment to the “real” people living there.

Providing this false information will send waves of confusion up and down the company’s communications chain and will most likely lead them into a never-ending misdirection.

Every time they call, just stick with the original story (it’s probably best to stick with a universal story for all debt collection agencies).  Just keep telling them that “John got arrested last week; he’s still not out of jail” or “John lives out in Oakland now, sorry.”  After a while of hearing these repetitive stories, they will eventually give up, leaving dazed and confused.

What you have actually done is used reverse psychology on them; fooling them into believing an obvious story.  And how can a debt collector argue that you didn’t get thrown in jail?

Just have some fun and let loose.  Remember, they are calling you, not the other way around.  Game on.