schaefdesigns.com

This is the next in a series of articles about debt and understanding your rights under Fair Debt Collection laws.

Debt collectors can be so aggressive their acts are illegal, or at the very least stretch the boundaries of the law.  It is important for consumer’s to be savvy about their money.  This does NOT means that careless abuse of spending money with intent of not paying it back is condoned…not by any stretch.

Debts are often turned over (or sold) by creditors to companies and attorneys to collect from the consumer.  If this happens to you, verify this is YOUR debt before you panic.  DON’T do anything until you take the following steps!!!!  If the debt is yours, determine the age of the debt then check the Statute of Limitations for Collecting Debt by State :  http://www.fair-debt-collection.com/SOL-by-State.html  to know if the attempt to collect is legal or a well planned trick.  Remember Debt Collection is big business!!!!  Select the statute for the state in which you currently reside.

This is a helpful tool to determine whether the debt collector has the legal right to attempt collection of the debt in the state in which you reside.  Each state is different and varies according to the kind of debt being collected.  This does NOT mean the debt is discharged, an attemtp to collect the debt may launched against your estate after your death.  The law puts a limit on the time a creditor has the legal right to collect by suing. 

IMPORTANT!  If a collector has contacted you regarding an old debt past the statute of limitations send them a registered letter (return receipt) informing them to cease and desist ALL communications with you regarding the debt and that your rights under Fair Debt Collection are being violated because the debt is past the statute of limitations for collection.  Keep your paperwork organized and stand your ground. 

If you pay one penny toward the debt protected by the statute of limitations it will start the clock ticking from the beginning! 

Example:  In New Mexico the statute of limitations for creditor-debtor transactions is 4 years after accrual of the right to sue.  If a debt collectors convinces you to pay $1.00 toward that debt the debt’s statute of limitation starts over for 4 years and they can pursue you for collection legally.

Understanding money, managing it, and planning your personal finance will minimize debt issues, however, things happen in life that may cause a temporary set back.  Personal financial literacy is key to minimizing stress and falling prey to illegal debt collection practices.

If YOUR Money Matters to You

If Your Money Matters to You….Stop Harassment by Debt Collectors

Two courageous women; accidental activists, have found their voices in court!  Yes, we’ve all heard the rhetoric about reforming illegal debt collections practices for nearly 4 years now yet it’s taken 2 women to take their stories to court to make a statement much more powerful than the impotent laws!  Enforcement of current laws is important too.  

A MUST READ!

Woman in VA wins $10 million judgment against a debt collector harassing her:  http://consumerist.com/2012/04/woman-wins-10-million-judgement-against-collections-agency-has-trouble-collecting.html

Here’s another for $8.1 million:  http://workbench.cadenhead.org/news/3610/woman-sues-debt-collector-wins-81-million

We must wonder what measures will now be taken to extract payment of court ordered judgments from these ruthless crooks …

One person can make a difference.  When the economy tanked the secret that many scared consumers kept was they were being harassed by illegal debt collection practices by large banks, box stores and many more. 

There was depression, time away from businesses causing them to fail, and yes even suicide common with young adult offenders.  An equal opportunity offender rearing its ugly head fearlessly preying on the fears of people everywhere!  

They beg for business, advertising everywhere…we all know who they are.  Once they have someone dialed in with their NEW credit card the interest rates sky rocket, billing is sent late, payments aren’t posted, penalties & annual fees are added and limits are lowered to nearly nothing.  Oh my!  The consumer is in default…a trap you say?  Seems so but no one says much about that. 

The harassment starts with billing late notices, phone calls and more.  Ruthless attorneys purchase debts for pennies on the dollar hoping to pick the consumer’s bones clean!  Collection services have sprung up everywhere and often many of them have the right to collect the same debt…dozens like a pack of coyotes scrapping for the last meat on the bones of a warm carcass.  

Are there laws to protect consumers; yes in many cases there are.  Financial literacy is the key to fighting back without fear.  This does NOT mean abuse credit cards or spend beyond your means.  The Fair Credit Billing Act goes a long way to protect consumers as well as Fair Credit Reporting Act & Statute of Limitations on Debt.  

If Your Money Matters to You read my next article about protecting yourself from illegal debt collection practices.