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Amy Lewis
Strategy Communications
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Email: Amy@scpublicrelations.com

DEALING WITH DEBT COLLECTORS
Don't Let Those Aggressive Debt Collectors Ruin Your New Year!

SAN DIEGO, December 27, 2007 – Imagine this scenario: You are home wintry evening, sipping hot chocolate in front of your fire while enjoying the twinkling lights of your Christmas tree, and the phone rings. You are slightly startled, but imagine the call could be from a long-lost loved one wanting to wish you a festive time of year – it is the holiday season. Instead you hear, “If you don’t pay this week you will find yourself in JAIL!” You are jarred back into reality as the deep husky voice of the pesky debt collector on the other end of phone threatens you, causing flashes of fear and panic in your mind over your holiday shopping debt that has followed you into the New Year. The voice continues, “If that money isn’t received by Friday we will alert your neighbors and coworkers of your debt!” Again a feeling of dread and turmoil comes over you; you are starting to regret ever buying Grandma that expensive robe she wanted for Christmas. It seems like a nightmare and you wonder how could these debt collectors’ threats be legal?

In fact, you are correct, the debt collecting tactics that are illustrated above are NOT legal. Although illegal, the above scenario, while seemingly nightmarish, is actually occurring to debtors across America everyday. Yet, what few people in similar situations know is that the tactics used above were ruled illegal in 1996 by the Fair Debt Collection Practices Act. These scare tactics are outlawed as are many other tactics in the strict list of rules debt collectors now must follow. These empty threats however are just one of many worries people face when trying to deal with debt collectors.

If the holidays have once again put you into a pit of credit card debt, those annoying debt collectors will undoubtedly be calling. But you no longer have to worry about empty threats, instead you can focus on how to handle the collectors and work with them to avoid stress and to get past your debt problems. Believe it or not, there are ways to get rid of these aggravating debt collectors so you can go back to living a normal life and not be constantly reminded of the debt you accrued from last year’s holiday shopping extravagances.

Debt-Free America provides the following five steps to shake off pesky debt collectors and handle them the right way:

First Step: Verify Your Debt
When the debt collector calls, the first thing that you should do is verify your debt. By verifying your debt, you can make sure that the amount you owe is correct and that there are no errors. Creditors and debt collectors are not perfect by any means; therefore it is always a good idea to make sure you understand what you owe and why you owe it. Asking over the telephone is not good enough proof to verify it, what you want is to see it in writing. You have 30 days from when you first received notice of your debt to write to the collector asking for more detailed clarification to be sent to you in writing. It is important from this step on that you save every

document you send and receive and take note of every phone call including writing down the name of each person you talk to.

Second Step: Know What Is Illegal
Debt collectors can be very aggressive, after all, it is their job to collect as much money as possible from you as fast as they can. And more often than not, many will involve themselves in shady tactics and often cross the line and get away with it. Therefore it is important to know what they can and cannot do.

Debt Collectors Cannot:

• Speak to anyone other than you or your lawyer about your debt. All those comments about them telling your neighbors or boss are simply empty threats. They legally cannot discuss your debt with anyone but you or your lawyer.
  
  
• Call after 9PM or before 8AM. There are boundaries set for appropriate times for contact as well as means of contact. They are allowed to contact you via phone, fax, email, regular mail or in person.
  
  
• Falsify information in attempts to collect your debt. They are not allowed to fake legal documents, misrepresent themselves or imply that you may be arrested if you don’t follow through with their demands.
  
  
• Threaten you in any way. Whether this is the threat of jail, or other punishments, they cannot by law threaten you.
  
  
• If the debt collectors do harass you or break any of these laws in trying to collect your debt, you should report them immediately to the State Attorney General’s office or the Federal Trade Commission. It is always a good idea to tape record phone conversations either secretly (if legal in your state) or by permission to ensure the collector is following the laws.
  

Third Step: Negotiate
By offering the collectors some sort of a payment, you can get them to ease off you a bit. The bottom line is they want money from you, and if you offer them some sort of payment, even if it is not the whole debt, they will at least be a little satisfied and stop bothering you for the moment. Be sure to tell them that you cannot afford to pay off the entire debt now because of budget constraints, but that you would be willing to pay a percentage of it. Experts say that an offer of 50 percent is acceptable for a debt incurred within the last year or two, while a 20 or 25 percent offer is a good starting point for any debts older that two years. You can negotiate with them and see how flexible they are and see what the best payment plan is that fits within your budget. Once you agree on a payment plan it is important to get this agreement down in writing to ensure it is a set deal and to avoid future trouble.

Forth Step: Old Debt, New Trouble? If you have a debt that is four or more years old, there are actually statues of limitations on how long a debt collector can come after you for that money. In some states, collectors can only come after you for four years before they have to stop. So, if you have an old debt it is a good idea to statue of limitations; do NOT get involved with it again. Once you make a payment on the old debt, or get involved with the creditor to which you owed, the clock starts all over on the debt and you may have to deal with years of debt collectors yet again.

Fifth Step: Keeping the Collectors Away For Good
Just because you have taken care of the debt collectors does not mean your work is done. It is now imperative that you keep a good credit score and pay off all your credit as soon as possible to avoid ever going back into debt. Stay away from new creditors no matter how tempting their offers are. If you ever need a reminder not to get back into debt, just the thought of those bothersome debt collectors should be enough to scare you away from ever being in debt again.

WHO: Debt-Free America
WHAT: Dealing With Debt Collectors: Don’t Let Them Ruin Your New Year
WHEN: Interviews are available immediately and ongoing
WHERE: In-studio or phone interviews with Debt-Free America

Debt-Free America is a 501(c)3 non-profit, community service organization offering confidential and professional credit counseling, debt management programs, and financial education to consumers nationwide. Debt-Free America is dedicated to providing FREE services to help financially distressed families and individuals effectively manage their personal finances. The Board members and operations staff have a long-term commitment to helping anyone in debt crisis, and even those not in a debt crisis. Debt-Free America has been in the business since 1997 and is now serving over 17,500 clients nationwide.

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