Dealing With Debt Collectors

If you have any credit cards or other debt that is past due, you've probably had phone calls or letters from debt collectors.

A lot of these guys are civil enough, but some of them can be so hard to deal with that you wind up promising them almost anything to get rid of them.

They don't like to take no for an answer. Debt collectors usually get paid a percentage of whatever they collect and they know that being pushy is generally pretty effective.

They also count on the fact that most people don't realize there are laws that limit what they can do to collect outstanding debts. The Fair Debt Collection Act (FDCA) is in place to stop the harassment that used to be the norm for collection services.

Some of the things the FDCA dictates include the following:

• If you ask for written proof of the debt that's being collected, the collector must supply it
• If you send a letter to the debt collector requesting that he stop contacting you about the debt, he must do so. All he can communicate to you is that he will in fact stop contacting you and notice of any particular actions that will be taken to collect the money owed
• If the debt in question is either the wrong amount or is not owed at all, you must dispute it in writing. Your dispute needs to be sent to the collector within 30 days of the first contact for collection

These rules don't get you out of paying the debts you owe, but they do help you avoid harassing, threatening phone calls and letters.