Posted: March 14th, 2011 | Author: Joe | Filed under: Debt, Tips | Tags: Debt, debt collection, debt collector, debt management, facebook, Tips | 3 Comments »
Debt collectors using Facebook seems to be all the rage, and it seems to be causing some rage too. While they are legally able to contact you online and even use your friends, family and employer network to find you, there are rules on how and when they can do so.
Rules for Debt collectors using Facebook
A debt collector’s rules of engage for Facebook are similar to their rules for contacting and collecting debt outside of the digital realm.
Debt collectors rules for real-world contact:
- Collection agencies are not allowed to call you between the hours of 9PM and 8AM.
- They are prohibited from using abusive and threatening language.
- Collection agencies must contact you only in writing if you make such a request.
- If such a request is made by your lawyer, then the collector must communicate exclusively with him from that point on.
- If asked, they are not allowed to contact you at work.
Rules for Debt collectors using Facebook :
- Any debt collectors using Facebook must disclose who they are and why they are contacting you. They cannot contact you under false pretenses.
- They cannot disclose the details to your friends. Debt collectors using Facebook can contact your friends and family in an attempt to locate you, but they are prohibited from revealing that they are trying to collect money from you.
- Once they locate you, any contact with your friends and family must cease (unless they are co-signers and liable for the debt being collected).
- Debt collectors using Facebook are required to provide notice in writing within five days of contacting you of the debt owed; the amount of debt and to whom it is owed.
Final thoughts
Just as there are ways top deal with debt collectors when they come calling, there are ways to deal with then in cyberspace too. In fact, the best thing to do with debt collectors using Facebook to contact you or your family and friends is direct them to contact you through snail mail and not Facebook at all.
Communicate in writing, preferably through a lawyer. If you can’t afford a lawyer or want to try dealing with them yourself, make sure you deal with debt collectors the right way, and know your rights.
Often times, just making them aware that you know your rights – how they can and cannot contact you – is enough to keep them in line. Other times, you may need to sue them for their illegal practices. Either way, if the debt is yours, then so is the responsibility to repay the debt.
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Posted: June 10th, 2010 | Author: Joe | Filed under: Debt | Tags: dave ramsey, Debt, debt collector, Fair Debt Collection Practices Act | 1 Comment »
I’m still sort of up in the air about Dave Ramsey on a lot of things. Sometimes I think he makes a lot of sense, and other times I think he’s just phoning it in, or giving advice about something he’s not really that knowledgeable in. Investing falls into that second category. I think he gives OK advice for people who aren’t really looking to be investors and only want to do something to invest for retirement. But I think his advice on debt is usually spot in.
I came across his article on debt collectors on Facebook today and thought it was worth sharing on this blog.
He starts off with some pretty unimpressive and frankly “Duh!” sounding stuff in the beginning:
Debt collectors are after one thing—your money.
And, you know what? That’s okay. If you borrowed money, then you need to pay it back. Collectors have the right to call you and ask you to pay back the money you owe.
It’s true, and I suppose it needs saying for some people out there, but I honestly never thought a debt collector cared about me. Not once. Never.
But having said that, there’s a big difference between wanting me to pay a debt that I’m obligated to pay, and using every method short of something Tony Soprano might use to shake me down for every spare cent I have. And this is where Dave provides some real info.
Toward the end of the post, he shares the basics about the Federal Fair Debt Collection Practices Act, and also provides some more resources to help deal with debt collectors and debt in general.
Head on over and check it out, it’s short. 
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Posted: December 24th, 2009 | Author: Joe | Filed under: Credit, Debt, Tips | Tags: debt collector, debt management, Debt Negotiation, debt settlement, getting out of debt | 3 Comments »
If you find yourself in a tough financial situation and are considering seeking the help of a professional credit counselor, there may be good news for you.
Since the credit crunch of 2008, and the current recession have led to historic bankruptcy and foreclosure rates, help is a little easier to come by. That’s the good part of this financial mess we are in – the social stigma has been removed. It’s now easier than ever to talk about money problems because it seems like everyone has them.
Here are 10 tips to help you talk to your credit counselor.
1. Determine what services you need.
Terms like credit counseling and debt counseling cover a wide range of services, but they can be broken down into 2 broad categories: 1. counseling and education, 2. debt reduction or negotiation. Credit counselors typically offer the counseling and education services, while debt management and debt settlement agencies offer the latter. You also need to be more wary when dealing with debt management and debt settlement agencies in general as they can harm your credit score and often simply don’t work
2. Make sure the counselor meets the legal requirements.
If you’re filing chapter 7 or 13 bankruptcy, a 2005 law requires you to complete an instructional course in personal finance management before your debts can be discharged. Before you sign on with a credit counseling agency, be sure they’re on the approved list of agencies to cover the legal requirements.
3. Verify they are the right kind of nonprofit status.
The term “nonprofit” is a bit like the term “organic” – everyone has an idea of what it means to them, but there are loose (if any) restrictions on who can use the term. Make sure your nonprofit counseling agency is listed under Section 501(c)(3) of the Internal Revenue Service Code. You can check the listing at the IRS charities website.
4. Verify their accreditation.
The term “accredited” is a lot like organic and nonprofit (see above). Make sure the counselor is accredited with the National Foundation for Credit Counseling, or the Better Business Bureau.
5. Are all the counselors trained and certified?
An old, but effective trick in advertising is to imply that all members of an organization are professionally trained and certified while it may only be a small subset of those employed. Ask the pointed question: “Are all the counselors trained and certified?”, followed by “and what kind of training and certification is that?”
6. Get (and check) references.
Be sure to ask the agency directly, but also check on the Better Business Bureau website.
7. Find out how this will affect your credit score.
The truth of the matter is that your credit has already been hit by late payments and the like, but what you’re looking for from the counselor is an honest commitment to help you make the most of your current situation. If they promise to guarantee to clean your credit history, or make an everything for nothing kind of promise – run.
8. Know the costs.
It should be a simple, straightforward cost. If they start down a complex road of “possibilities” or a menu of fees and percentages – run. If they say they will hold your payments, and that you should stop paying your creditor yourself – run.
Legitimate nonprofit counselors will charge something less than $100 per hour for counseling, and some may be free! But if things seem too good to be true, it probably isn’t true.
9. If the price $0, or close to it – find out why.
Sometimes credit card and mortgage companies provide funding to counselors. This can be ok, but you should be made aware of it if this is the case. The important thing is that the counseling agency is working for you. If they seem to be giving advice that helps your creditors at your expense, then there may be a conflict of interest.
10. Make sure the service is what works for you.
Whether the counseling is done in person, over the phone or on the Internet doesn’t matter as long as it’s what works for you.
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Posted: December 22nd, 2009 | Author: Joe | Filed under: Debt, Tips | Tags: Debt, debt collection, debt collector, debt management, Tips | 1 Comment »
Debt selling and buying is big business so it’s no surprise that debt collectors can be difficult to shake. Even if you pay off the balance owed, you can still be pestered by a collector who’s working off an out of date record.
What happens is that the original creditor has tried to collect on a past due account, but the accounting department has made them stop so they can write off the account as a loss. Sometimes they sell that account info to a 3rd party debt collector that is less restricted in the means and methods they can employ to collect that past due amount.
So what should you do if you find yourself fielding calls from debt collectors?
Well, assuming you actually do owe the money they say you do then you should first try working out a plan with them to pay off the debt. Some debt collectors don’t really care if you have enough cash flow to make regular payments however, and will still try to get the full amount from you.
If working it out on your own doesn’t work, then you may want to look into a debt management plan. A counseling agency may have better luck getting the collector to accept an affordable payment plan. Just be sure to meet with a certified counselor at an accredited nonprofit agency, because working with a shady debt counselor can ruin your credit, and most only charge you for what you could do on your own.
You can find a list of agencies on the Web sites for the Association of Independent Consumer Credit Counseling Agencies or by calling 866-703-8787, and the National Foundation for Credit Counseling, 800-388-2227.
If you are dealing with debt collectors who are unwilling to work with you or a credit counselor, here are 3 steps to follow:
When dealing with a debt collector on the phone, keep these in mind: keep the conversation on a business level, and request that they send you written verification of the debt you owe. Don’t expect a warm reception, but don’t cop an attitude either – remember, you’re the one who broke the deal to repay the debt.
After you have received the information and you have verified that the debt is really yours and not due to identity theft or some other circumstance, send them an written offer stating your desired monthly payment. Send this by certified mail – it’s worth the extra cost.
Finally, be sure to get the collector to agree in writing to the amount owed and your monthly payment plan to repay the amount completely. Expect the collector to try and increase the amount, or haggle with you on how much you should pay. Just make your offer fair and stick to it – remember, they need to get paid something and probably don’t expect to get the full amount paid anyway.
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