Entries Tagged 'Articles' ↓

In a recent interaction I had with a credit repair forum administrator over stolen content from here it reminded why I chose not to participate very much in these venues.  Forums are social animals and are generally used to feed the egos of their creators.  If you disagree with a forum owner you usually meet strong retribution from them under many aliases and the rally of their supporters.

Forums do provide a resource if you are having trouble with a specific issue and you generally get opinions. good and bad, from many sources.  While forums use does require you to spend hours doing research in their environment before you can really understand the depth of knowledge needed to deal with credit repair or dealing with collection agencies.  Regulars in forums want you to research before you ask questions, this is understandable, but many only find them after having an issue hit them face first

If you do enter many of the credit repair forums on the net you need to be prepared to be flamed if you do not agree with the regulars or point out lack of proper resource acknowledgment.  The best piece of advise to offer people that are looking for forums is to stay away from ones that have little activity or a small user base because you will not receive a varying amount of opinions given your situation.  You are better to use the collective value of forum participation versus a linear everyone on the same page atmosphere.

In my opinion the best credit repair forum on the net, with a broad range of experience is:

• Creditboards (I am not associated with them nor have they asked me to promote them)

I will not list the ones to stay away from here but one thing you want to watch for is active participation by several users.  Stay away from forums that tout small user bases or if you see the same poster in many place as the most recent commenter as the knowledge shared in these arenas is biased to one set of opinion and does not provide a diverse range of experience, they are more to allow self proclaimed gurus to flaunt their opinion.  For the most part they claim to be a credit info resource, while some of the info is correct, the personalities you encounter make them a waste of time.

Debt Collectors do not generally do not fall under the Do Not Call laws if they are calling your landline.  However the Telephone Consumer Protection Act (TCPA) does apply if they are using automated dialing equipment to call your cellphone.

One of the tale tale signs that you are being called by an automated dialer is the clicking sound or dead line silence before a person actually speaks after you answer the phone.  Automated messages to your voice mail are also a dead giveaway.

Generally speaking though most all calls placed by debt collectors are done via a predictive dialer, which is the exact term used in the Telephone Consumer Protection Act.  The excerpt below is taken from the FTC Website Regarding the TCPA: [ftc.gov]

Automatic Telephone Dialing Systems and Artificial or Prerecorded Voice Calls

The FCC has specific rules for automatic telephone dialing systems, also known as “autodialers.” These devices can be particularly annoying and generate many consumer complaints. The rules regarding automatically dialed and prerecorded calls apply whether or not you have registered your home phone number(s) on the national Do-Not-Call list.

Autodialers can produce, store, and dial telephone numbers using a random or sequential number generator. They often place artificial (computerized) or prerecorded voice calls. The use of autodialers, including predictive dialers, often results in abandoned calls – hang-ups or “dead air.” Except for emergency calls or calls made with the prior express consent of the person being called, autodialers and any artificial or prerecorded voice messages may not be used to contact numbers assigned to:

• any emergency telephone line;

• the telephone line of any guest or patient room at a hospital, health care facility, home for the elderly, or similar establishment;

• a paging service, wireless phone service (including both voice calls and text messages), or other commercial mobile radio service; or

• any other service for which the person being called would be charged for the call.

This rule of the Telephone Consumer Protection Act applies to all companies that use predictive dialers.  The only exemption that callers recieve for calling a cell phone with a predictive dialer is with expressed consent.  A prior business relationship is not express consent, as mattr of fact the ACA is trying to get this law changed and appears stymied in their efforts.

One of the way that collection agencies capture consumers cellphone numbers is when you call into their toll free number.  You cannot block your telephone number when you call a toll free number as they are paying for the call.  So if you call a collection agency from a cell phone and they can identify you with that number then more than likely they will add that number to their database.  So if you do not want a collection agency calling your cell number with a predictive dialer do not call them from your cell number.

If they do happen to call your cell number from a predictive dialer then they are liable to you for a minimum of $500 up to $1500 under the TCPA if you can document their calls, unless your state has exemptions or enhanced statutory damages.  Those amounts are per call not a one time event.  They absolutely owe you $500 if they call your cellphone one time with a predictive dialer and $500 for each call after that.

Each call with a predictive dialer would also have Fair Debt Collection Practices Act violations as well as they are using an illegal means to attempt to collect a debt.

Make sure you read My Disclaimer

In a recent Federal Trade Commision Action against LTD Financial Services validates my position on holding collection agencies responsible for violation the law.

“We are not saying the people they called didn’t owe the money,” but the methods used violated the law, said Thomas Carter, senior legal council for the FTC’s Southwest region in Dallas. As a result, all of the money amounts to penalty, not restitution.

“This is a precedent-setting case,” Carter said, sparked by nearly 1,500 complaints to the agency about LTD’s tactics. “It sends a strong message to the debt collection industry: You can’t turn a blind eye to this kind of stuff. Quoted from - The Los Angeles Times -[www.latimes.com]

No matter if you owe the money that a collection agency is attempting to collect from you they still must not violate your rights. It just so happens that some of the agencies highlighted here so far that have violated collection agency laws in dealing with me are trying to collect on debts that have been long paid. I will be adding more to the fold as information becomes available about their violations.

If you do find yourself being harassed by collection agencies you must take the steps to report them. If enough consumers complain about a collection agencies illegal activities then the FTC will wake up and investigate them and hold them accountable.

To pay or not to pay that is the question.  Personally I would never pay a collection agency.  Yes I have had to deal with them and I have never paid a single one after I became an informed consumer.  I have actually had collection agencies pay me for their violations of collection law.

I do not know your personal situation.  There are a few rare situations where I feel it would be ok to pay a collection agency if it is stopping from buying a home and obtaining or keeping a professional license.  But even then you need to be careful how you pay them.

Horror stories abound where collection agency employees use consumers credit cards and checking information for illegal purposes or an attempt to hit the next level in their bonus plan.  There are also stories of collection agency employees committing Identity Theft.  Just think many times if you speak to a collection agent they are not even using their real name or will refuse to give their last name and they have all of your personal information right there in front of them.  Things such as your social security number, Credit Report and date of birth, items that would allow a dishonest person to steal your identity in a heart beat.

If you must pay a collection agency make sure that you never give them a credit card or checking information over the phone.  This is just asking for trouble.  While many that work at collection agencies would never misuse your financial accounts why take the chance.  Use money orders or bank drafts.

To answer the real question of this article you are under no obligation to pay a collection agency.  If you owe money to a company that has turned you over to collections try to work it out directly with them.  There is no legal requirement that says you owe a collection agency anything.

If they are a Junk Debt Buyer they may own the debt now, but even then you are not obligated to them.  If they try to sue you you have so many different valid defenses that their lawyers will run if you put up a fight.  Do some due diligence if you are worried about a collection agency, but remember you are the one ultimately responsible for your actions so like anything unknown tread lightly and learn as much as you can.  I would not pay them a dime.

I am not an attorney make sure you read My Disclaimer.