Confused By a Debt Collector? Here Are Your Rights
By Ohio Attorney General offers some advice Printer Friendly
A number of consumers have recently reported calls from debt collectors seeking money they don't think they owe. Do they have any recourse?
The Fair Debt Collection Practices Act provides a number of consumer protections. Ohio Attorney General Richard Cordray has issued a consumer alert, highlighting five specific things debt collectors are not allowed to do:
- Harass you or use obscene words when talking to you.
- Contact you before 8 a.m. or after 9 p.m.
- Contact you without identifying themselves.
- Tell others about your debt.
- Contact you at work if your employer disapproves.
Watch out for scams
Some recent debt collector calls are outright scams. They involve a male caller who pretends to be an attorney or someone representing a payday loan company. He threatens the consumer with arrest and prosecution unless immediate payment is made on the non-existent loan.
Former Hollywood Video customers have reported getting calls from a collection agency trying to collect late fees allegedly owed to the now defunct video chain. Many say the charges are for movies and games they never rented.
"I received a notice in the mail from Credit Collection Services stating that I owed $355.05 for past due movies from Hollywood Video," Rhiannon, of Portland, Ore., told ConsumerAffairs.com. "I called them and asked for the list of movies I owed. There were nine movies/games I have never rented before."
When you are presented with a debt collectors bill that you don't think is legitimate, Cordray says you need to know your rights. Within five days after contacting you by phone, a debt collector must send you a letter explaining how much you owe, who you owe it to and how long you have to dispute the debt.
You have 30 days from the date you are contacted by the debt collector to send the collector a letter disputing the debt and requesting verification of the debt. Make sure you specifically state that you are requesting verification of the debt, Cordray says.
Whether or not you believe you owe the debt, you can tell debt collectors in writing not to contact you again. Keep in mind that asking for them to stop contacting you does not eliminate any debt you may actually owe, and they still can sue you for such debt.
Another thing to remember is the Fair Debt Collection Practices Act applies only to third-party debt collectors, so these rights do not apply to debt owed to your original creditor, such as your credit card company, or to debt owed to a governmental agency, including unpaid parking tickets, child support or taxes.
If you do owe a debt, Cordray says to watch for companies that promise to "erase" your debt, reduce your interest rate or improve your credit score. These claims are usually bogus, and most debt consolidation companies will charge you for services you could do yourself for little or no cost. Most negative credit information remains on your credit report for seven years.
Read more: http://www.consumeraffairs.com/news04/2010/12/confused-by-a-debt-collector-here-are-your-rights.html#ixzz17I31rf1l
