Debt Collection - What To Say When You Answer The Collectors Call
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- Опубликовано: 13 июн 2010
- ***We highly recommend that you check out our updated video on how to talk to debt collectors, which you can find here: • Treat debt collection ... **
What do you say when you answer a collection call? Should you even answer a collection call?
You can read an article with some additional examples and also, if you live in Alabama, you can get our free book on "Stopping Abusive Debt Collectors". www.alabamaconsumer.com/2012/0...
If you have any questions about what we've talked about in this video, feel free to call us at 1-205-879-2447.
Thanks for watching!
John G. Watts
Watts & Herring, LLC
Serving consumers across Alabama
205-879-2447
www.alabamaconsumer.com/
"No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers." Our free weekly webinar is here -- my.demio.com/ref/ZHxa8NhYRNAp... -- on Thursday we'll be talking about some of the new FDCPA rules. Join us if you can!
"No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers."
Never admit to being yourself over the phone to a debt collector - NEVER, get a credit score helping law firm agency to get better credit and fight it, let them do the work for you; NEVER ADMIT to who you are, it gives the collector too much information.
James thanks for your comment and your perspective on this. That is certainly one way to handle it and those that go that way hopefully get great results.
The way we typically (not always -- every situation is different) handle it is a bit different.
Great thing is there are usually multiple ways to get to where you want to go.
Thanks for sharing your thoughts on this!
John Watts
Alabama Consumer Protection Lawyers q
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Many thanks, I been tryin to find out about "what happens if you ignore a collection agency?" for a while now, and I think this has helped. Ever heard of - Donadelyn Stupefying Dominance - (Have a quick look on google cant remember the place now ) ? It is a good one of a kind product for discovering how to repair your credit minus the headache. Ive heard some pretty good things about it and my partner got excellent success with it.
Thank you. A collector will get so much further by being ethical and polite than by making threats, yelling and demanding. More collectors need to be polite and reasonable and I believe more bills would get paid.
1) Send a cease and desist letter if you are getting lots of calls. Google it for examples.
2) Ask the collector to verify the debt. This makes them PROVE you are responsible for the debt. In many cases they can't since they purchased the debt from another business and frequently they don't have much to go on.
3) Be careful about old debts. If you pay one cent, you are acknowledging the debt. In most states there is a statute of limitations. You will get calls just prior to that expiring. They are desperate to get you to pay them one dollar. Just don't do it.
Good advice.
The only thing I'll add is that in a lot of states if you do pay anything on the debt that is past the statute of limitation, an argument can be made that you have restarted the statue limitations. This is why it's so important for you to know whether a dead is collectible, whether the time has passed for credit reporting, and whether the statute of limitation has expired which means you cannot be sued on this.
Thank you for your good comment.
?...I recently got a call from a collector who said that I owed a debt and it was dated back in 2011. I don't remember who that was but he wanted me to prove that it wasn't mine and whatever. I emphatically denied the debt, but can I still use the ideas you talk about here?
Oh by the way...I got a letter from them, and I called them...I had no idea who they at its were...and I still don't, but they want me to prove that its not my debt.
The 30 days have passed for me to send the letter of verification. Apparently, after 30 days, they don't have an obligation to send it. Is this true? I had a 1,000 debt that is now at 12,000 in 2 1/2 years. I am worried.
Barbara K they should still validate the debt. most good agencies will, even after the 30 days. best advice is not to ignore it. Always talk to them, return the calls and try to work something out if it's a valid debt. ask about a settlement? some debts can be sued on. you don't want to deal with that
Only in house collectors will sue. If it's charged off and sold most of these shady collection agencies will not sue because they cannot produce the proper documentation so they resort to scare tactics.
request the "judgment issued against you" for the debt. In other words, it went to court, the debt was valid and a judge ordered payment. otherwise the debt is just a claim for debt.. not a valid debt, as no judgment was issued. They also have to provide proof they are licensed to collect a debt in your state, and you can request only written correspondence. Follow up all of your conversations in writing and formally request only written correspondence, yes its your right.
grizz tough Thanks for your comment. You are right that in many states there is a requirement that the collection agency be licensed. Alabama is not one of those. Its a great reminder for folks in other states who do have this protection. Thanks again for your comment! John Watts
I had a collector call and ask me why I had not paid ..I told them I have no money , got laid off, and went to mission for food, got loans from friends to make utilities...then she screams at me and says how do you pay your rent? .. I told her all these things were none of her business...and not to harass me
Yeah they sometimes get a bit nasty. If you ever get any more calls, document them and then you may be able to sue the bad guys. That's always fun. :)
@@johngwatts I like you! You are a Hoyt lawyer! The Dothan guys are so bad...
My suggestion -- document these calls. Tell them not to call again. If they do, then get with a consumer lawyer to sue them. These are pretty good cases -- we like suing for folks who have been called and they have nothing to do with the debt.
Keep us posted on what happens.
Thanks
John Watts
Thanks for your comment. I find many collectors have your approach and I appreciate what you do. Keep up the good work and I'm glad your agency allows you the time to listen to what folks are saying so you can come to a good solution.
This is one approach but a downside can be you keep getting calls. Every time the phone rings, it can be annoying.
We all have to choose our own approach and I appreciate you sharing yours.
Best wishes
John Watts
Thanks -- glad you liked it.
John
A long time ago, I got a call that I knew was a collection call. I acted real sad and said, didn't you hear? She passed away.
Well, not the approach I recommend but thanks for sharing your approach!
John Watts
Then they start reporting to credit card bureaus that you are dead when you are not that's a bad thing btw.
@johngwatts speaking to debt collectors will open up conversation that allows tha collector to know my financial situation...and if i really dont want to pay my debts because im more interested in spending my money on other things than my past debts am i wrong?
Thank you for your advice
Thank you . I just requested a video on this topic & you just answered my question
Great vlog!
Great advice. Thanks for sharing your legal knowledge with us.
+Bama MoonDog You are welcome -- thanks for kind words.....
All I tell them is "Just send a bill and shut up.". Then I hang up.
That's one way! Do they call you back?
I'm going to tell you what I did. I received a call from some debt collections company while i was in HS, I picked up the phone listened to the collector and informed him that I wasn't going to Pay, period. He responded by taking on a quasi-threatening tone. I wasn't impressed.
it wasn't my debt, I wasn't going to pay them- and I made it crystal clear. He started claiming that he was going to call every day, so I gave him my cellphone number.
I never heard from them again.
you don't wanna get collection calls? pay your bills.. in time. pay what you owe.. and get your your credit reported.. you owe a debt.. make an arrangement and show them you have intentions to pay... share your situation.. they helps.
Lanbi,
This is a good plan.
Sometimes folks do share their situation with creditors and collectors and get no help.
And whether you pay your bills or not you should not be harassed by debt collectors who break the law. The ones that follow the law -- no problem.
But the ones that break the law are hurting consumers and the law abiding debt collectors. These lawbreakers are the ones we sue.
So yes pay your bills -- make arrangements -- all wonderful advice. But if you do find yourself dealing with a debt collector who breaks the law -- sue them.
Thanks for your comment
John Watts
I've had the misfortune of getting collection calls all my life and I've found it best to ignore em. Any reputable collection agency will notify you in writing. If you speak to one on the phone and verify who you are (which is what you'll do before they say anything) that can invalidate a statute of limitation claim by speaking to them and acknowledgement. The goal of them calling is to harass you.
Thank you for the info very hellful
You are welcome -- thanks for the comment!
Many thanks. Geat video. once again. You change peoples lives with your video. Respect.
thank you for the info...
+Joanne Moonflower You are very welcome. Let me know if you have any questions or suggestions for other videos thanks! John Watts
I do collecting for a living and this guy has some good points. You need to understand who you're speaking to, and ask questions. If you have a valid dispute, explain it to the debt collector and more often than not, they can help out with the dispute. Half my day really is handling disputes and guiding people on how to resolve it. Honestly, I don't even feel like a debt collector at times...I feel like a therapist. People tell me war stories more often than not.
People need to pay their bills, and collectors need to obtain the money legally and ethically. It is inethical to not pay bills, it is also inethical to use fear, threats and shady tricks to collect.
I've gotten calls and they won't tell me who they are or what company they're with, but insist I give them my ss# to verify who I am! I tell them THEY called me and I'm NOT giving them that information and unless they are willing to tell me what the call is about, I have nothing more to say to them.
+Sassy Frassy Good point. Your not obligated to `reveal` your name or admit the debts). Your under no contractual obligation to pay back adebt. Just hang up, or screen calls before you pick up!
FidelCastro128 I screen calls, but occasionally they'll spoof a local number (I live in a small town) and I'll answer. I've even had my own number come up on caller id! I knew right away it was spoofed, answered the call and read the guy the riot act! lol
No contractual obligation between (your name) and the agency. Reply, I don't talk on
financial info. over the phone. Also the collector does not pay full value for the amount.
Sassy Frassy so you want them to call someone and just give out your private information because they say they're you? this is to protect your privacy. no one can do ANYTHING with the last 4 of your SSN. educate yourself. If you feel uncomfortable verifying on the phone, get the company name. they WILL give it to you, and google them. better yet? PAY YOUR DAMN BILLS
@Pramod Shah as a matter of fact I do. I also work as a collector.
That tends to make them not want to talk. They like to record -- they don't like being recorded.
Good comment -- thanks
John Watts
@supertrex2 It may be that way in other states but not in Alabama. One of my former clients was just sued for $600. Surprising, and it seems stupid, but that's the way it works here. Thanks for your comment.
I suppose that is one approach. Probably a problem with a "fraudulent conveyance" to avoid a creditor but I think we get your point.
Thanks for the interesting comment!
John Watts
I bought a prepaid phone to have as a emergency backup phone. I've come to find out that the previous phone number belongs to a person who owes money. I got companies to stop calling me but I've notice that after a while a different company calls me. This is frustrating because my minutes are not free and most of my prepaid minutes are used talking to debt collectors. How do I stop my phone number from being associated with the person who owes money?
That is a frustrating issue. Couple of thoughts for you.
First, if the calls are automated, then you may have a TCPA claim for robo dialed calls. Basic rule is a company gets one "free" robo dialed call to your cell but after that, they violate the law. So if the previous owner gave permission for someone to call the cell, but now you have it, then that company is now violating the law calling. Same is true if they pass it along to a collector. So check out that option.
Second, if the companies calling continue to call after you tell them to stop, you can likely sue under the FDCPA as they are harassing you.
Get with a consumer lawyer in your state -- if you need help finding one or if you live in Alabama, give us a call at 205-879-2447. Thanks!
John
What is debt collectors are sending Private Investigators to your home? I had a problem with Citibank, and prior to me talking a debt collector strange people were coming to my front door asking me questions about my home. Do debt collectors hire PI if they can't reach you by phone?
+Takeo The Warrior It is more common if you are talking about a home mortgage rather than a credit card. But normally they will tell you they are checking on the house to make sure it is occupied and kept safe as that is their "collateral" on the loan. My suggestion is document everything and remember if you have a smart phone you can always take a picture or record someone who comes to your door. If they don't like it, then perhaps they should leave your property. :)
Keep us posted and hope no more odd things happening.
John Watts
A debt collector cannot harass anyone and part of harassing is calling when they know it is bothering other folks. Make sure and tell them your situation and why it is bothering you. Ultimately, get with a consumer lawyer in your state to see your options. Sometimes suing them is the best way to get them to leave you alone.
this guys voice is just brilliant!
krispyJDubyall1 .....and that`s not all !
YOu know you are right!! I have been negoitiating my own debt with different collection agencies these past couple of days and i am so surprised how nice these collectors are!! making it so much easier for me.. I think i like the nice approach! This world This world lol ..i'm glad u are in a good place nothing like being happy where u have to earn your living..live good, eat well and play alot!!
Very good approach. Document the calls -- most smart phones let you take a screen shot showing the call and number and date. (iPhone is the home screen button and the top button at the same time -- takes a photo of the screen).
Thanks for your comment.
John Watts
I had a debt collector called me and they told me that I own like $150 and if I don't pay they will ruin my credit. They are actually very hostile when talking. But I actually started asking him question about where does this come from, because I wanted to know what billed did I forgot to pay. So he told me it was from a emergency at the local clinic and I told him I was going to talk with the clinic first then get back to him. So in the end, I contacted the clinic and found out they had the wrong address for me so I never got my billed and I was able to pay the billed to the emergency clinic directly and I was able to to get it down to $120. Then I called back the debt collector and told him the situation and he was all good.
+zaro33 Very good -- sometimes it works out that way so glad you took the time to talk to the collector, then go to the clinic. While the collector should not have been hostile to begin with, at least he backed down when you explained it. Do keep an eye on your credit -- we have a current lawsuit now against Tri-State where they put negative info on my client's credit report after he paid the bill to the original medical provider. I'm sure they disagree with what I said -- that's why we have federal courthouses to try these things in.
So be aware and protect yourself.
Thanks for your comment!
John Watts
Is this advice good for other States as well as the one you practice in?
Great advice, thank you.
So its a starting point. I need to update the video I think it is about 10 years old. :)
I have a few more grey hairs now.
If you are on the phone with a collector I would focus on getting info from them. Use it as an opportunity to get more knowledge -- they want you to pay but you need to figure out who is collecting, on what, why, how much, etc.
If you think about it, subscribe to channel and that way you'll be notified when I do a new video on this. Its on my list. :)
Thanks
John
@bc1969214 That is a pain. If there is no one there, and no caller ID, I don't know how you identify the company. My experience has been with our clients is that event those places will eventually identify themselves as they would like to get paid and hard for a collector to get paid when they won't identify themselves....
I love your videos
Thanks!
I had a bill go into collections once because I was laid off. I explained it to the collector and paid VERY little (like 11¢ on the dollar). Most recovery agencies will work with you and most agents are sympathetic as long as you are honest!
DrClawizdead I'm glad you had a good experience. I don't think all collectors are bad -- most aren't. The good ones need to be rewarded and the bad ones punished. That's what the FDCPA (Fair Debt Collection Practices Act) says -- it is unfair to the good collectors for bad collectors to break the law. Thanks for your comment and congrats on your great experience!
John Watts
I got a call from a debt collector about a medical bill that I was told I didn't have to pay because of my financial situation and I had sent the debt collector the letter from the hospital stating this, they tried to tell me that they got a letter saying that the hospital would pay all but $ 300.00 dollars and I am responsible for the remaining balance. I have NEVER received a letter from the hospital stating this and I had told them that I wasn't paying anything until the hospital sends me a letter stating this. Did I say the right thing?
I'm sick of debt collectors calling people when THEY created this mess by charging people way too high interest and extending credit limits almost daily. Of course you're gonna have people falling behind and that's what they want. So the fees and penalties will accrue. I was 18 without a job and given a credit card with a $15,000 limit. Does THAT sound like sound financial planning? The banks lure you in, because our government is there to bail them out in case you can't pay.
You should have read the terms and conditions and interest rates or let your lawyer look at anything before you sign it everything you are being charged for you more than likely agreed to and signed your name to
i have 3 credits card around 13000$ and its been 5 years i didnt pay any bills..last month a collection agency called me i told her i will call back and i closed...does it mean i have to wait another 7 years? after the 7 years does my debts disappear? plz i need advice
Zouz Raad I'm not completely sure I understand. If you paid on the debt, it can re-start the statute of limitations to sue. But not the time period for it to be reported. That's 7 years from the first major default or delinquency. Let me know if this doesn't answer your question. Thanks! John Watts
@gotmituns There is a charge off that normally happens at between 90-180 days but this does not normally change the fact that the debt is owed and does not prevent collection. There are statute of limitations that vary by every state and after that period of time the debt should not be sued on. It varies as to whether that means the debt is wiped out or just the collector can't sue. In Alabama it is simply the collector cannot sue.
Dang. A ten year old video - every bit as relevant today as it was a decade ago. Solid advice.
Yes, pick up the phone, be polite even if they’re not and simply ask them to *mail* you proof of the debt to whatever address they have on record. Keep repeating that regardless of what they say to you.
Only USPS mail will do. No email, text messages with links to web sites, nothing. Tell them they need to mail you an official packet with all documents that prove you owe the debt - that’s the only mode of communication you’ll accept.
Thanks and what you wrote is 100% correct. Appreciate your comment!
John
PS -- We have a newer video coming out in a week or so about how to talk to collectors on the phone -- feel free to subscribe if you want to see it thanks!
If they cannot pay, what do you want the person to do?
That said, I do know people that spend money foolishly and then cannot pay there bills. If your power bill is in arrears, MAYBE you need to stop eating out and bring a lunch to work or maybe do not buy that new Ipad you do not need.
thank you for posting this. If a financial company such as Santander who purchased Citibank financial took over an auto loan do they have to provide a chain of custody? Am I obligated to them if I did not sign a contract with them? Also have you ever heard of transglobal solutions in Decatur Georgia? They are claiming to be a mediator for Santander
You are welcome.
My position is that Santander or any other (alleged) purchaser of debt needs to show that they really own the debt. You don't want to pay the wrong company.
I've had clients who have been sued at the same time by different debt buyers with each debt buyer swearing that they owned the debt. Kind of hard to do!
In Alabama if a company really and truly buys the debt, then you would be obligated to that company even though you did not have a contract directly with them. The contract you had with the original company would flow to the new owner.
Transglobal? I'm not sure I have. If they are contacting you ask them what they do. A mediator is a neutral third party who brings two parties together to work something out.
I doubt that's what Transglobal does -- sounds like they are a debt collector instead. If they contact you, ask them to send you proof in writing of who they are and what they do as well as to validate the debt.
You are very smart to ask questions and to be thinking about this -- you want to make sure you are dealing with folks who are legit and who you truly owe the correct amount of money to....
Best wishes and thanks for your comment.
John Watts
My suggestion is to always be truthful with them. Ask questions like "Who, what, when, why, where, and how." Get information and see if this is a debt you owe -- if it is pay it. If not, or if you are being abused by a collection agency, talk with a lawyer in your state.
I'm curious, though, what did they say when you told them you were blind?
Thanks for the comment.....
I understand and I'm glad you're in a job where you don't have to deal with that drama (though you talk to some very interesting people sometimes...good ones)...there are different agencies, and some or maybe a lot really don't think like they should. Customer service is pushed where I am. "Firm but friendly". It works and we've managed to be successful for many decades. I wish you well.
Agency owns the debt, for a fraction of the amount. You have no contractual obligation
to repay any amount.
Fidel,
It depends on does the collection agency own the debt? If so, can they prove it? Can they prove you owe the debt?
If they are merely the collection agency (not a debt buyer) then do they have the right to collect?
You don't want to pay anyone you don't owe.
But at least in my state debt buyers file close to 1000 lawsuits a week and win the majority because people assume these guys can prove they own the debt.
On one hand we don't want to do that and on the other hand we don't want to assume we never owe a collector.
Finally, if the collector breaks the law (Fair Debt Collection Practices Act) then sue them for all you can. :)
Best wishes
John
When they call, I wish them a Merry Christmas,lol
I wonder if they will wish you the same? :)
Do not ever give a debt collector any of your information over the phone if they're trying to reach you they can reach you through certified mail
This is one strategy -- and there are more scams then when I did this video however many years ago.
They don't have to do certified but it is a valid option to ask them to only communicate in writing.
Thanks
John
@@johngwatts I agree there are more scams today than there have been in the past 20 years these guys are trained to gather as much personal information as they can from you you do not want to verify your social you always want to get them to send you written certified mail And especially verify the debt has not passed the statute of limitations Of your state By the way I am not an attorney I am a victum of this I've done diligent research on the topic Please do not let these people intimidate you you will not go to jail they may take you to court if it's a legitimate claim Do not be a sucker
@gotmituns I hear you. The original creditor will get paid unless they have sold the debt to the debt buyer. The original creditor is simply outsourcing the collection costs to an outside (third party) collector rather than having its own employees do the collecting. I do agree about people lacking information -- that's why its good we are talking about these issues and sharing ideas and viewpoints. I appreciate the points you have made. Thanks! John
I agree with your advice. Remember to ask: Who, what, when, where, how, why, etc.
This collector is coming into your life -- through your phone -- the same as if the collector showed up at your door. You are entitled to ask questions to find out who is calling, what is it about, how much, how did they get the debt, what will they do if you don't pay, how much to resolve, and to request they send proof in writing.
Thanks for your comment!
John Watts
if i want to work as a collecter what are the most commom questions as regard sheks and invoices?
what if your debt has been closed for a few years already. can they still sue you.
+tpm1868 That depends on the statute of limitations. Statute of limitations is the time period to sue you. This will depend on what state you are in and what type of case is brought. For example, in Alabama on an old credit card debt it is either 3 years (what I believe) or 6 years (what the collection lawyers argue). Almost everyone understands that most auto loan cases are 4 years. So my suggestion to you is get with a consumer protection lawyer in your state to find out if you are still in danger of being sued. One final point is a lot of times if you pay anything, the collector will argue you re-started the statute of limitations so be cautious about this. Again get with a lawyer so you make all decisions fully understanding your options. Thanks for your great question and I hope this answer helps. John Watts
A few things left out here. First of all you'll receive a letter from the collector. As Fast as possible reply to the letter.
Example. your letter will include. IF you think I owe this debt. then provide the following. ! an actually copy of the initial contact/or agreement. 2 Provide the terms of the contract that I've broken. 3 show all of the payments with dates- forms of payment with assigned balance after each payment. 4 the date and balance of last payment received. including year and date.
All and any prior agreements made and broken between myself and the debtor. Provide your license proving you and the right to collect in my state.5 also clearly express the fact that you are not asking the collector to revivify your name and address .but to answer each and every question you have ask for inside of the 30 day period from the date listed at the top of your letter.Copy the State District Attorney and all 3 major credit bureaus .That way you wont be getting phone calls. Because by law they HAVE to write you first, PS also state in the letter to contact you ONLY BY MAIL. BOOM
Billy, thanks for your comment. Often you will get a letter first but not always. There is NO requirement that a letter be sent first under the FDCPA (Fair Debt Collection Practices Act) or Alabama law.
Other states may have that rule, I don't know.
But after you speak with the collector, they do have to mail you a letter.
Your dispute letter you laid out in your comment is good. Without more details on the reason for the dispute (and you need to make it clear you dispute the account), they don't have to give you a lot of detail.
I would also suggest saying don't call your cell and give that number. This can help when they call with a robo dialer (auto dialer) as you can sue under the TCPA (Telephone Consumer Protection Act).
Your letter saying only communicate in writing -- some judges agree with that and some say you can only say "don't communicate at all". Just depends on which judge gets it.
Thanks again for your comment and thoughts -- my goal with this video (going on 8 years old now) was to get a conversation started. And I appreciate everyone who adds to this by commenting. Thanks for your insights.
John Watts
I do agree. now on the CA i work for we answer the phone saying hey this is (name last name) from (CAs name) my i speak to (debtors name). Sometimes after you said that consumers want to know what do they owe, but if you dont get the consumer to verify their address or ssn before telling them what do they owe then that is 3rd party disclosure. So you might have to include that on your video.
Exactly, Federal law states that you can't give peoples information out to just anybody that's why they need verification to make sure they are not a scammer I would try giving them wrong information to see if they try correcting you or saying that's not it before assuming they are a scam ...and saying a debt saying still in collections on a credit report isn't any different than a debt saying resolved is ridiculous...
@MsB0402 What you are describing is not a good situation. I'm talking about don't deal with corrupt, law breaking debt collectors or, if you do, have your eyes open. We always suggest people pay their lawful debts. That is different than being scammed. That is different than paying a debt so a collector will stop breaking the law. If a collector is breaking the law, pay whoever you truly owe and look at suing the law breaking collector.
i got a call from a collector a few weeks ago. i was half asleep, "i work nights" so i asked them to mail me the info. they said that they emailed it to me. i again asked them to mail me the info. "who they were, how much i owe, etc" i dont even know how they got my number. but i have not been called since. is that normal?
Or ... You can just say they have the wrong number.
Well, I wouldn't do that if not true. That gives the collector an excuse to call family, co workers, etc.
So not my choice for how to handle but I do appreciate you sharing your thoughts.
John Watts
@@johngwatts what if they don't know if you work or don't live with family?
Luke Triton All info online is public, it’s not hard lol
what about the ones that call you and you have already told them they have the wrong phone number and yet they call you daily.
I’m getting a call from First financial collectors and they don’t have any information about me just my name. They said that I had an accident and the insurance company for the other person have owed me money!! What should I do to avoid this problem please if someone can help?
I would ask them to send you details in the mail. This does happen -- car wreck, then insurance company pays money and then comes after you for the rest.
Best to know what is going on by getting the details of what is being claimed. Then you can turn this over to your own car insurance company and/or get with a lawyer in your state.
Best wishes
John
@@johngwatts I will but do I have to trust them while they don’t have any of my information?
Keep us posted on how that is working for you. Different states have different laws on what collectors have to do.
But always a good idea to ask for written documentation (sent by US mail -- not email or fax) that shows the company collecting has the right to collect the debt.
Take care and thanks for your comment....
John Watts
I understand -- we have debt collectors tell us this in our lawsuits that they are just doing their job.
The ones to blame are the bosses and owners who set up a system where people are forced to break the law or lose their job. Not an excuse for breaking the law but it makes it more understandable.
Appreciate your comment and giving us your perspective.
News Flash: Don't answer the phone.
That works... :) Sometimes people want to know who is calling or they want the calls to stop. But yes not answering the phone does cut down on the conversations with debt collectors.... :) Just be careful it doesn't prompt a suit or other action.
John Watts
That's why there is a volume button.
Alabama Consumer Protection Lawyers
A few things that you can do. Lets say you got the debt collection company name and physical address.(street address) You can write a letter to stop calling you. It must be a certified letter and they must sign it. Another way to get info is to do the first step. Ask them for proof of ownership of the debt. It also has to be a certified letter.
I agree certified mail is the way to go if you are sending a letter. If you are not going to pay the money for certified mail, don't bother sending the letter.
Thanks for the comment!
John
I don't think asking "what will you do if I don't pay you" is a bad question. It is a bad idea when asked by a debt collector to acknowledge the debt.
That's a legitimate question. It let's the collector decide whether to be honest and law abiding or to lie to you and break the FDCPA (Fair Debt Collection Practices Act).
I would personally never admit to owing the debt over the phone. You would have to make sure you know who you are talking to, that they truly have the right to collect, that the debt is valid, etc.
Instead ask them to validate and send proof of what you owe, to who you owe, how much you owe , how they calculated it, etc. Send that to you through the mail NOT by email or fax.
Thanks for your good comment!
John Watts
Yes it is a good idea to tell the collector you want it deleted from your report -- they hate doing this but they will at times do it. Now if you paid, and your report shows that you still owe the full balance, that can be fixed. Get with a consumer lawyer in your state and I think you'll find that will get resolved quickly. Either it will get fixed or you can likely sue which gets it fixed....
Thanks for your comment
John Watts
You are right -- normally if you settle with a collector, the collector will update your credit report to show that it has been settled for less than full balance. This can be, at least in the short term, more of a negative than not paying it. Just one of the quirks of credit reporting. But ultimately paying a collection account is a good practice if you owe it.
And the collectors can agree to get the account off of your credit report. They don't like doing this but they can.
John Watts
Does this also apply to private student loans the statute of limitations ?
+Amber Timms Yes usually the collectors who are collecting on private student loans are covered by the FDCPA (Fair Debt Collection Practices Act). Now if your question is whether there is a statute of limitations on private student loans -- yes. Think of them as just a normal loan (with exception of hard to file bankruptcy). So there is a time period to sue.
Same thing with credit reporting -- a time period (usually 7 years after defaulting).
I may have missed the point of your question and I'm sorry so let me know if there is anything else I can answer.
Thanks!
John Watts
You can always tell the collector in writing that you refuse to pay which means they have to stop calling you (its same as a "cease communications" letter). Keep a signed copy and send original by certified mail. Problem is they can keep moving the account to different agencies. You mentioned you live in Alabama -- give my office a call and let the lady you speak with know about your situation and she'll set up a call or meeting with you. Thanks!
John Watts
Birmingham, Alabama
That's great if you have someone to handle them.
Easiest solution is when they call a second time, look into suing that collection agency. You have to work your way back to the source of the problem to solve it. We start with the collection agency calling our clients and then figure out who they got the debt from, etc.
Hang in there....
John Watts
I've gotten my check garnished with out even speaking to anybody. explain that one. they never had contact with me and already started garnishing.
Two options.
One, this is a federal type of loan or debt and they did an "administrative wage garnishment". They are to send you a letter alerting you to this so you can challenge it.
Or two, they sued you and claim to have served you. Then they claim you did not answer the lawsuit so they have received a default judgment and that's why you are being garnished.
I would get with a consumer protection lawyer in your state -- or even call the collection lawyer if you know who it is -- to figure out who is garnishing you and why.
If you were not notified properly of an administrative wage garnishment then you may can challenge that. Devil is in the details.
If you have a default judgment and you were NOT properly served, then you need to see if you can attack that judgment as being void for lack of service. Each state is different so get with a lawyer in your state.
Best wishes and sorry this is happening to you.
John Watts
I have a debt collection calling my friends and family what do i do.
Phillip,
Normally this means the collector is violating the Fair Debt Collection Practices Act (FDCPA).
If they can't get in touch with you -- they think they don't have good contact information -- then the collector can call third parties to get your location information.
A "third party" is anyone other than you or your spouse or your attorney.
"Location information" is your home address, home phone and place of employment.
So if this collector has your location information and/or is telling others about your debt or asking them to pass you along messages, those are all activities we have sued for in the past.
Sometimes these cases are worth a small amount of money -- other times they settle in the six figure range. We had one case like this that we tried in federal court and the jury gave us a $100,000 MORE than we asked for.
Juries, in our experience, do not like debt collectors who invade your privacy by telling others about your personal financial information.
If you are in Alabama give us a call at 205-879-2447.
Best wishes!
John Watts
PS -- sometimes the companies doing this are scam companies - it is someone off shore or some criminal making calls on a prepaid cell phone. Hard to sue the scammers. But if a legit company, you may have a very strong case depending on the facts. I would definitely check out your options.
Hi ! thanks for the information. Very good and helpful.I live in Massachusetts and I have a credit card dept of almost 18K, but have not paid it since February, 2009, recently I received a letter from a collection agency offering me a deal about that debt. The companies name is Midland Credit Management. They offer me if I pay 5,000 they will cancel the debt. and erase it from the collection area in my credit report. I only called once to ask to make a pay plan to start paying, but after I hang up I felt insecure if it was legit. I send a letter asking to give me more information about my debt, there right to collect and verified my credit report and it was true MCM did purchased my dept from my bank. In February 2017 it will be seven years without paying the dept should I pay or wait till it goes away?
Leo Mendez I don't know what the statute of limitations is in Mass -- this is the period of time a company (such as Midland Funding) has to sue you.
If you are beyond that time period, then if you pay you will be paying on a debt Midland has no legal right to sue you on.
It will come off of your credit report about 7 (or 7.5) years so you are probably looking at it coming off next year anyway. Check your credit reports and they should show when this will come off.
Midland Credit Management is a legitimate company -- it is the collection arm for the debt buyer Midland Funding. Having said they are legit, we see them violate the law all the time. As of a week or two ago, we had 11 pending federal court lawsuits against both of these companies.
My suggestion is get with a consumer protection attorney in Mass to go over your options and make sure whatever your plan is (pay, don't pay, send letters, etc) is a good one and you know the good and bad of each plan.
Thanks for your comment and questions!
John Watts
Excellent.
Thanks!
If one owes money one must pay back. This is just being a good human being. And we need to keep away the perception that debt collectors are shady.
True and there are a couple of other factors.
If a debt collector breaks the law collecting a debt you owe, does the collector have immunity? Or can I owe the money AND sue an abusive debt collector?
And if a debt collector calls me out of the blue should I have the right to gain info about them and the debt they claim or do I have to pay them over the phone?
Given the huge number of scams -- just google debt collection scams -- it is prudent to be cautious before handing over money.
Just like if someone showed up at your door demanding money, you would likely want some proof that you owe the debt and this person at your door is the right one to pay.
Thanks for your comment
John
Get the collector to verify or validate the dept.
I have a lawyers office calling me now who refuses to talk to me without me giving them information first. This makes no sense to me. I confirm who I am and to me that should be enough if they are calling me.
They need to know you are the right "Sharon Denning" but normally the way this is done is you confirm your address and they tell you the last four of your social. If they won't give you any info just ask them to mail it to you or to give you their full name and address and you mail them.
If they won't give their full name and address, likely a scam company...
John
You are absolutely right. Pay your bills. And if collection is needed, do it properly and not illegally. Thanks for your comment....
I can attest to the validity and professionalism of John Watts as he represented me 7 years ago in a debt collection lausuit with Asset Acceptance. He had the suit dismissed in my favor in just a few minutes. I thank him for that!! I failed to follow up with him to file suit against the debt collectors. Entirely my fault. He is legitimate in every sense of the word and is offering some great and free advice.
It is important to answer and document these calls for purposes of documenting the violations that you may have the right to sue on. The best way is to record the conversations. If you don't have a recorder, then make notes as to what the collector said and make them at the time of the conversation or shortly thereafter, documenting date and time. In most cases, they will hang themselves during the conversation.
vn19682 Thanks! I appreciate the kind words..... Good advice on the documentation..... Thanks for the comment..... John G. Watts
That is odd. You are saying a collection company calls you to tell you the debt is going somewhere else? I've not seen that.
Let me know if I'm understanding you.
Thanks!
John
I need a video with debt collectors calling about things like not paying a toll in a toll road, is that something they can actually do? also I have a derogatory mark on my credit report about an electric bill how do I go about those kind of collections?
Thanks JO.
We'll do a video on the toll road collectors. Short version is if you owe the toll, a collector can collect on it.
As far as an electric bill derogatory mark, the first question is "Do you owe it?" If no, then dispute it and if it is not removed, sue.
But if you do owe it, then see how to resolve it. Make sure you are clear on how the resolution works -- i.e. if you pay X dollars, what happens to the debt?
Then when it is paid, make sure your credit report is properly updated.
We'll do a video on this one also.
Thanks for suggestions!!
John Watts
@bluesmap That is one approach -- to only communicate by mail. The collectors don't have to agree to this but some will. I don't think asking a question means you admit owing the debt -- it is simply gathering information. Who are you? What are you collecting? How much? What do you say I owe this for? What will happen if I don't pay? Gaining information. But you make good points and people have to decide if they are comfortable talking by phone....
Can't collection agencies and lawyers prove it is your debt by presenting the e-signature and the last four of the social security (if not the entire soc.sec.#) to the court? How do debtors overcome or argue out of that, given that they submitted an e signature and their ss number(s)?
What if the caller ID shows UNKNOWN CALLER OUT OF AREA and even when you pickup there is just a beep? How do you go about getting the info on the caller to ensure they do not call again and contact you only by mail?
@graverobber35 I work in collections. Think logically. If I am trying to collect a debt and someone says they are not who I am seeking, what logical sense would it make that I persist on calling that person. Unless I have reason to believe they are just lying to get me off the phone, that is a simple waste of time.
I think you have some very good points in your video. Not all collectors are bad people. Thanks for being fair in your video.
Well you have that right but just be aware that this can have some bad consequences -- collection lawsuit, etc.
Everyone must make their own choice -- I just presented my viewpoint and I appreciate yours.
Take care
John Watts
Hey I came across your video because I've been watching videos about the strawman and taking control of the account or becoming the proprietor of the account? To pay your debts. Is everything they are saying true and if so how do you do this. I seen one guy try to explain this saying you just fill out a scc1 form and send it to my secretary of treasure
This is good information.
Is it just me, or does this guy sounds like a Baptist preacher?
+Eric Cable Thanks! I'm not sure what a Baptist preacher sounds like but I'll take that as a compliment. :)
Have a great one!
John Watts
Eric Cable lol looks like one too!!! Don't forget to tithe!!!
Alabama. Its not a complement
Debt buyers do buy debts for pennies on the dollar and that can influence what they will accept as a settlement. But legally they are entitled to demand the full amount. If I buy a car or a house or a stock at a great price, I can still sell it for higher. Same with debt buyers. But it never hurts to ask about a good settlement amount if you are convinced the collector owns the debt or has the right to collect the debt.
Thanks for your comments.
John Watts
You don't have to pay a debt consolidation agency. They bought your debt from someone else who didn't have the right to sell your debt and sign it under their own name so you don't owe them anything
When is the Best time to pay a debt collector.I heard when the debt is transferred to another debt collector usually 6 months to one year.
+Jimmy Fortenberry There's no on set best time. If it is a legit collector who is collecting the debt and they are not violating the law, then as soon as possible is best time. But if they are breaking the law, then you have to be very careful paying a company that breaks the law. We'll talk soon Jimmy thanks. John Watts
I have a Afni collection 3rd party billing for ATT. AFTER 6 months the debt got transferred to another CC Agency.I was told the best time to pay and have it removed is when the debt transfers from one company to the next.First the old company can't report a paid collection because they no longer hold the account and the second company hasn't reported yet.If paid moat Collection Co don't bother reporting paid debt unless they have already started the reporting process
That's a good point -- if the second company has not reported, then you could settle. I would make it a part of the deal that they not report. Then on the first one -- the old collection agency of AFNI in your example -- you would need to dispute that as they would not have the right to keep that on your report. Good thoughts and comment -- thanks! John Watts
Interesting how much leeway debt collectors have in America. I live in the Great White North (Toronto) and my credit report is free of collections but I still get calls from old debts going back 10 years and one as old as 20 years. The statute of limitations for credit reporting throughout most of Canada is 6 years, save for one or two provinces, is seven years. Equifax's policy is to use six years Canada-wide regardless of provincial legislation. Trans Union uses the maximum provincial limitation period. I do not intend to ever pay these pirates, so I NEVER talk to them but they keep phoning everyday, so I have my cell phone set to block their calls from ringing. Up here, debt collectors are not allowed to call neighbors, friends, relatives, with a few minor exceptions, such as to ascertain if the debtor is living in the basement or to assist in locating the debtor and they are allowed to phone an employer ONCE to verify employment and paydays. They are prohibited from calling on Sundays or after 8 PM or being abusive or aggressive or from using threats but few of them care about silly things like laws. Most of Canada has a one to two year limitation period to sue a debtor but the debt can still be reported for 6 years. All debt collectors must be licenced and post a $10,000 bond (minimum). They are all required to identify themselves and their employer corporation and give their licence number if requested but my experience is that they are very vague, ostensibly to cover their ass when there is a problem later. My advice to my American friends is to NEVER talk to them because they do not have a contract with you and cannot legally enforce the debt UNLESS you talk to them and they are successful in getting you to acknowledge the debt. If you do talk to them (not recommended), they will try to get you to identify yourself and if you acknowledge the debt and they are recording you (and they are), they may be able to reset the limitation period and you're screwed. In Canada, a verbal acknowledgement is inadmissable and must be in writing but it varies in the US. Never admit verbally or in writing that the debt in question, is yours. Be vague. If you decide to settle with them, tell them that for the sake of expediency, you are willing to settle the debt for about 10% of the amount provided that they provide a Letter of Deletion, which you can fax to the credit bureaus and have them expunge the offending collection. Never offer them more than 25%. They buy $100,000 blocks of debt for anywhere from 2% of the face values of the contracts to maximum 25%, depending on the age of the debts. Write the terms of your agreement on the back of the certified check and state that cashing the check constitutes acceptance of your terms. Make sure you get a copy of the check before and after it is cashed in case you have to sue them later. NEVER ADMIT THE DEBT IS YOURS, AND THAT YOU ARE ONLY SETTLING TO GET IT OFF YOUR CREDIT REPORT. Best to have a lawyer or paralegal to act as a stakeholder because bill collectors cannot be trusted to provide the letter of deletion after you have paid them. Further, the Letter of Deletion must specify that they made a MISTAKE and that it is not your debt. Otherwise, the credit bureau will refuse to expunge it because the debt is really yours. They will not remove factual and true information, only if it is a mistake. If you intend to pay the debt, the best way is to deal only with the company who you originally dealt with. But legally, they have sold the debt and cannot deal with you unless they call back the debt from the bill collector, which is unlikely because they would have to buy it back from the collector for more than they sold it for. The debt collector has no contract with you, so you don't legally owe the money to them, only the original creditor, and only the original creditor has the right to report you to the credit bureau but they can't any longer because they wrote it off and sold the debt. Technically, the debt is in limbo land and NOBODY has the right to report the debt unless you acknowledge it with the collector. This opens the door for you to sue the creditor and the credit bureau(s), who will both have to send their agents to the court, and demand an order for specific performance, to get the creditor to act in good faith with you because it is affecting your credit and/or an order for the credit bureau to delete it and for the creditor to call off his hound doggies, who are harassing you illegally. Yes, you can sue the original creditor for damages for what the collectors do even after they sold the debt because the contract only exists between you and the creditor. Before you do this, embark on a letter writing campaign and inundate the creditor with offers to settle, to set them up to show that they are not acting in good faith. Mark all letters with the phrase WITHOUT PREJUDICE at the top of the letter. This means that anything you write is without prejudice to your contractual rights and any promises you made in writing is usually inadmissable against you in court. And even before you do the court routine, dispute the debt with all credit bureaus that the debt appears on and you have a decent chance of having it removed at that stage because bill collectors rarely have the paperwork to satisfy the credit bureau of the debt's existence, and will have to delete it because it can't be verified in a reasonable time. Further, the collector is bound by the original contract as far as reporting time periods go. If the date of last activity on the debt is 6 years old and the limitation period is 7 years, you only have to wait another year for it to evaporate, unless they suck you into acknowledging the debt and the clock starts over again for 7 more years. Bill collectors always fudge the DLAs which is fraud. Always dispute the DLAs with the credit bureau. If you have multiple collections or bad trade lines, pick the 3 oldest ones and dispute them. If the creditor or collector cannot verify the debt in a reasonable period, (in Canada, reasonable is 30 days), they must by law, expunge it. If you dispute everything, the bureau will know why you are doing it, and will try to find a way to rule against you. Also, the credit bureau fudges on the legally acceptable standard of proof and often come back in a week and say they verified it, which means that they called the creditor or collector and verbally verified it. Not good enough. Demand a copy of the contract between you and the collector with your signature. Do not allow the credit bureau more than the legally defined reasonable time definition. If it's 30 days, call them in 25 days and demand that they wrap it up. Be prepared to fight with them multiple times for the same collection or trade line that they deny you on. Put them to strict proof or sue them if they are too stubborn and belligerent. They are a huge bureaucracy and do not care about you because they get paid by their members. If you sue them, they will probably find a way to verify the debt in your favor because usually their verification process will not get by a judge, and they know it. After a few months, do it again with another 3, rinse and repeat. Sometimes you get lucky and the bureau is so busy they don't even get to your disputes until the time is up and they have to delete all of them as requested. Just remember, the collectors will still call you regardless of what is on your credit report. Now with a clean bureau, you can ignore them with impunity. Once your bureau is clean, pay all your bills on time and in full and your score will soar. Hope this helps.
Ronald very interesting about Canada. I did not know any of that.
Thanks for your perspective on how to deal with collectors here.
Appreciate your comment!
John Watt
Excellent information, thank you
Wow you are amazing buddy, thank you so much.
I live in northern ontario,could you help explain a few things,that you said??????
@Beesnchickens Hmmmm..... I think that would annoy the collectors. The problem is, and I think you were being funny, is that if it is a legitimate debt collector and it is a legitimate debt, then it should be taken care of. And if it is a collection agency that will break the law, then they need to be taken care of, usually by a lawsuit. If you have tried your approach, what happened?
I've found when they have the wrong number, they PERSIST in calling again, and again, and again.
+Robert Messer When they do this you need to look at suing them. I've had collectors say "But we thought Joe Blow was lying when he said he wasn't Jack Smith. So we kept calling." The response is, "You took a chance and lost. Now pay the price!" So I would seriously look at suing any collector that keeps calling the wrong number. My clients have been happy with the collector paying money and a federal court lawsuit gets the calls stopped very fast. :)
Thanks for your comment....
John Watts
If you answer the call *do not identify yourself* until you know who they are and what they want (hint: money). If you confirm who you are when they prompt you then that becomes evidence if they sue you. In some situations you may not be legally obligated to pay at all, but they don't tell you that. Also, it is absolutely illegal for them to blatantly harass and extort you for money, which usually happens if you don't answer their calls.
Here's the challenge -- because I completely get what you are saying.
A debt collector is prohibited from law in discussing what they are calling about until they know they are speaking with the consumer who supposedly owes the debt.
So if you won't tell them who you are, they can't talk to you.
That may be good or bad but do understand that if they can't talk to you, they may sue or contact others to find out your "location information" -- phone number, address, and place of employment.
Basically everything you do has consequences in the debt collection world but I will say this about Alabama law: merely identifying yourself does NOT have any meaning on whether you owe a debt.
And you are right that many folks are not obligated to pay but this can be hidden from consumers.
So definitely learn your rights and if you do talk to collectors -- listen, ask questions, gain info, and never admit you owe the debt unless you somehow KNOW that this particular debt collector is entitled to collect the debt. I don't know how any consumer would know this unless you receive proof in writing.
Thanks for your comment and strategies!
John Watts
What kind of idiot gives their name and SSN to an unknown person calling them?
Its a judgment call.
If a collector has called and knows your name, then very low risk in confirming. And if you want to see what the collector is calling about, they have to know they are speaking to the right person. I did this video probably a decade ago -- I suspect I said give the last 4 of your social. Or you can have the collector tell you the last four and you can confirm.
Definitely don't do anything you are uncomfortable with though.
John
What if you do owe the money but fall in on hard times and can't pay the debt right then cause i have had so many collectors call me and want to argue with me on when i can pay and even have told me that i will end up in jail !
+abrandy36 If you live in Alabama or anywhere I know of in America, you don't go to jail for not paying a consumer debt. Definitely get with a consumer protection attorney in your state to get some help. If you don't have the money, you can't pay it. But definitely get with a lawyer as you may have collectors that are violating the law -- it may be that you need to sue. Best wishes! John Watts
Thank you
1st of all, debt collectors, by law can't threaten you in any way, call be4 8am or later than 9pm, talk to anyone other than you. if they do this continually, keep record then contact a lawyer. u can sue the debt collector. this is what you need to do. ignore the calls. when they call, save them to your contacts then set that contact to no ring on your cell. that way u won't get annoyed. don't worry about the debt til they actually sue you, if they even bother. if they do sue you, answer the summons. if you don't they win by default. if you end up going to court, lay out what you make and what ur bills are. the court has to leave you money to live off of. them taking you to court is highly unlikely.they expect you to not file an answer with the court and win by default. the debt collectors will scare you, send official looking documents thru fed ex. nothing is official until a sherriff delivers court papers in person. they can't touch your home, car, personal belongings. if you have a 2nd car, house or rec equipment they could sell those for payment, but they would have to pay someone to come get it, auction it off, and if there is money owed on it, the bank that the loan is thru gets paid 1st. that=money not left for the debtor. if you have savings they could take that.garnish wages. what it comes down to is for the average person, the debt collector is powerless. also, how old is the debt? that means last time a payment was made on the debt. look up your states statute of limitation. averages between 3 and 12 yrs. if its past that date, they can't sue you. important! if you make a one time payment just to get them off ur back, that starts the statute of limitations all over again. you don't want to do that. they can call and annoy u but thats it. by law they have to stop calling, if u ask. i really wouldn't worry about it