Help dealing with annoying collection agency

[dendawg]

I once had a debt collector go after me. One occasion, he informed me I'd better get a lawyer. So I did...I emailed the Michigan attorney general () with the details of what he said and faxed a copy to the collection company. Buh-Bye debt.

[mathnerd]

The bank itself can take your money. It's called the right to set off debt, or right of set off, but they can only do it if you owe the bank itself money. Some examples, all assuming you have a demand deposit (checking, savings, collectively called "dda's) or certificate of deposit account (cda)at the bank that has a positive balance:

-you have a charged off dda
-you have a loan directly with the bank (not a subsidiary like home mortgage or auto finance) that has gone into default
-same thing with a line of credit

They can do this with any account in which you are a sole or joint owner. This can come as a shock if your college age kid has a joint account with you, but let's another account go bad (for example). The bank doesn't need a court order for garnishment and they can take every penny in the account in good standing if they feel like it. I could never say it in any official capacity, but if you owe a bank money, move your liquid accounts to a different bank.

[Food Lady]

There are only two entities that I know of that can levy your bank accounts: the IRS (back taxes) or government (student loans and such). And they have to leave a minimum amount in there so you aren't left destitute.

[MoonCat]

Here's something I don't think anyone mentioned yet:

It's possible for them to file something with your bank to put a stop on your bank account. That means you won't be able to touch any of the money in your account. And you won't be able to get the hold off your account until you call them and make payment arrangements. If you have direct deposit right now, you might want to go back to paper checks for a while (if you can) because you'll still be able to cash the checks in person at the bank and just take all the money with you (just be discreet and careful so no one knows you're carrying that much cash until you get home).

[Food Lady]

I think the difference here is that you don't actually owe? I do, so they have a right to try to collect until the statute runs out. Just that garnishment in my situation isn't allowed.

[Trixie]

I'm not intimidated by this I already know this agency is kinda shady. I think when I was checking on the law it said they had to provide something in writing within 5 days of the first phone call. I just got this letter the other day well after they stopped the calls at work.

[EricKei]

Precisely what FL said. Thing is, the less scrupulous agencies -- much like less scrupulous employers -- are counting on the fact that a huge number of people know nothing about the law, and will simply do as they're told. Know your rights, and don't let them intimidate you.

[Food Lady]

I receive official documents from law firms and the court itself a couple of times a year. It doesn't mean they have any right to take anything from me if the law says they can't.

[Seshat]

Quick update...I finally received something in the mail from them and it all official like.

Don't be intimidated by 'official like'. I can make something 'official like' with the Gimp (to make a 'logo'), Word and a laser printer. That doesn't make me a court official or anything else legal-ish!

So. If you think you need advice, make an appointment with Legal Aid or some equivalent agency. If not them, contact the Salvation Army, Lifeline, and other major charities: someone will be helping those in your area with debt collectors, and they'll know who it is.

Take this official-like mail to the advice person, along with pay stubs, bank statements, and other proof of income. If you happen to maintain a budget, take a printout of it as well.

[Food Lady]

I've been through the ringer with this stuff. This is what I know is true in my state, at least:

--If you tell them not to call you at work, they have to stop.
--The first few months they will call you multiple times at home. I counted one day: 16 calls. It's stressful, but you're under no obligation to answer a number you don't recognize nor to call back.
--If you don't answer, they start with the letters. You don't have to respond, but if you don't for a long time, it's possible you'll get served to attend a hearing in which they ask you questions about your financial status. You have to answer under oath. The one law firm that did that to me did tell me that if I send paystubs or some other information to show I still can't pay, they won't serve me anymore. They were actually really nice about it--they do realize I'm poor and are just following procedure--and said they simply wanted me to keep them abreast of the situation. I can do that.
--I have had judgements levied against me, even though I'm exempt for three different reasons by my state's law. The garnishments went through, but I was able to stop them by filing a Debtor's Answer with proof of my exemptions with the creditor's representative and my company's payroll dept. I know there's a way to get back the money they took, since I was exempt, but I'm not going to bother. I do owe; they can have the couple of hundred dollars.
Garnishments here cannot go above 25% of your net income and can only last 12 weeks. Only one garnishment order can be taken out at a time. If the 25% takes you below the poverty line, you're exempt. If you are on food stamps or disability or SSI, you're exempt. If you have a subsidy on your health insurance premium or have state health insurance, you're exempt.
--Once you file and Answer and they see you can't pay, all they can really do for 6 months is call you or send a letter saying "we want to work with you" and give you settlement amounts or pay arrangement instruction. You don't have to agree to that if you can't pay i
--As far as I know, there's a statute of limitations on a debt that hasn't been sold to a third party. In my state it's 6 years. After that point they cannot try to collect anymore.
--Sometimes they will discharge (forgive) the debt. I had one do that without my agreement, not that I recall ever signing off. If my memory is right and that's the case, I'm not sure it was legal. The gov't considered that income (received money or goods that I didn't pay for, essentially), so I got taxed on it. At least the debt is gone now.

I really wish I could pay, but as an American citizen I am protected by the law from being made destitute by creditors.

[Trixie]

Quick update...I finally received something in the mail from them and it all official like. I turned the back over and there's all these laws for different states and at the bottom in all caps to boot is how by law you can request to not be called at work. Just need to do it in writing. Since the last time they hung up on me at work I've only gotten one call at home and no more at work.

[Trixie]

So far I haven't gotten any calls today at home or work and judging by the fact they hung on the last call I think they got the message. At least for now.

[Sapphire Silk]

Thanks for the advice so far. They've already called me 4 times today with only one time leaving a message. I've started making note of it. I don't have anything in writing from them so I don't have an address to write to. But if they do call at work again it would be my pleasure to hang up on this bitch.

I'll look more into the other things.

Thanks again!

If you actually talk to them on the phone, get the name of the agency, their mailing and physical address, and the account number. Demand proof you owe the debt. Admit to nothing; do not say you owe them anything.

If they refuse to provide this information, tell them they are in violation of the Fair Credit Collection Act and you will be filing a complaint with the FTC and your state attorney general. Follow through. Then tell them all further communications must be in writing by certified mail. This usually gets the harassment to stop.

DO NOT call back if they leave you a message. I never do. I'll let 'em fill up my answering machine.

If the debt is legit, they can report it to the credit bureaus, and it's hard to get off. But it only lasts 7 years, and if I know I don't owe the debt, I tough it out.

If I decide to pay the debt, I usually send the money to the original creditor, and claim no knowledge of a collection effort I let the original creditor and the agency fight it out after that.

I would also Google the phone number to see if there are complaints against that number. I have dealt with and am dealing with "collection agencies" that are just scam artists. They call me and tell me that I am going to jail if I do not pay up, they say that they will have the police at my house to arrest me by the next day. These people are using scare tactics to get people to pay them money and people actually do pay! Read all you can about the Fair Debt Act and let them know that they are doing illegal collections. This is the USA and absolutely no one will go to jail if you do not pay a debt. The worst that can happen is they will take you to small claims court and win a judgment against you, once they win a judgment they can garnish your pay checks but only for a certain amount each month.

Yeah, any threats and I'm done, and I let the assholes know it.

Collection agencies rarely take people to small claims court. It's not worth it. They will take you to district court (where they can get higher judgements) if you live in a creditor friendly state (like California) because the laws and the courts are more friendly to the creditor . . . they often can charge interest on the debt. If you live in a debtor friendly state (like North Carolina) they never bother with the courts; judges aren't sympathetic to collection agencies here, and interest can't be charged. So check your state's laws to see what your risk for legal action actually is.

The messages that they've left were just name call back at #. Even when I was talking with them it was borderline. Nothing threatening, more like badgering and yesterday I mentioned by law they couldn't do what they were doing and I got hung up on. And no phone calls today yet.

Don't call back. I think they got the message, so the harassment should slow down. They've realized they're on thin ice. You'll probably get one call per day. If you decide to answer, demand written proof of the original debt with details on what the debt was for, not just a dollar figure. If they can't tell you what the debt is for, you can often get out of paying it.

Check out Flyingifr's page on how to deal with aggressive debt collectors and win.

Having said all that, if you really do owe the debt, make plans to pay . . . on your own terms when you're good and ready. I never promise to pay, and I deny deny deny until I decide I'm ready to pay and then I send them a check.

[Trixie]

The messages that they've left were just name call back at #. Even when I was talking with them it was borderline. Nothing threatening, more like badgering and yesterday I mentioned by law they couldn't do what they were doing and I got hung up on. And no phone calls today yet.

[taxguykarl]

Send a letter certified mail asking for details about this debt and demand that all communication be by snail mail.
Is it legal to record calls in your state? If so, those will go a long way to proving legal violations.