Last week I recounted the story of a reader who had received a very “official looking” packet of paper from some entity that she’d never heard of, blessing her with the news that she owed them $800+ AND announcing that she’d been “pre-approved” for several discounted pay-back arrangements.
That particular reader is so convinced that this “debt,” and its accompanying attempt at “collection,” is bogus that she’s turned it into the Post Office as “mail fraud,” so the take-away for most of us was to be vigilant about stuff like this because, these days, pretty much anybody can generate “official looking” paper and wait for us sheep to send money. Good advice.
But another reader, who has “been there,” also points out that, especially these days in this economy, we all need to know what our rights are regarding “debt collection,” because…well, because it isn’t pretty; or, we at least need to know where to look to find out what our rights are, and to remember that we aren’t alone, that there is help and that, sometimes, mistakes are made.
VERY good advice, so I’ll tell you where I’d start looking, which is where I always start looking: http://www.washingtonlawhelp.org/ and click on the icon that says “Consumer & Debt,” with a large, black “$.” I’ve mentioned this web site to you before: It’s free, it’s “public,” it’s developed by the Northwest Justice Project and it’s a virtual wonderland of legal information on all kinds of topics, written in language that folks like us can actually understand, so don’t take my word for any of this – Go look for yourself.
I also know that debt collection can be, at best, annoying and, at worst, terrifying, so I’m going to hit a few of the high points on this tough topic, but please remember that I’m looking at the same web site that you can look at, so this isn’t magical, mysterious or “insider” knowledge, OK?
OK, now: Collection agencies are regulated by the state and the Feds, and there are laws that protect us “debtors” who are being contacted by them. If a collection agency first contacts me by phone, the first thing I’m going to do is insist that they contact me in writing, because that first written notice has to contain certain information, like:
- The name and address of the collection agency;
- The amount of the debt, stating the original debt and a breakdown of other costs plus interest;
- The name of the creditor to whom the debt is owed;
- A statement that, unless I dispute the debt within 30 days after I get the notice, the agency will assume that the debt is valid;
- A statement that, if requested within 30 days, the collector will provide the name of the original creditor, if different from the collector, and…
- …a statement that if I notify the collector within 30 days that I dispute the debt, the collection agency will get verification of the debt and mail it to me.
That’s good, because if I’ve notified them in writing that I disagree with any portion of the debt, the collector has to stop everything until they have proof that I owe it and send that proof to me. I’d keep copies of everything and, if at all possible, I’d send all of my communications by certified mail, return receipt requested.
Maybe I wish you had a sample letter to go by? There’s one on the web site; and, obviously, there could be any number of reasons that I’d dispute a debt, right? OK.
Now, how could I stop a collection agency from contacting me? Well, I’d notify them in writing – And YES, there’s a form letter for that on the site – But that won’t make the debt go away, IF I owe it – It just means that we’ll probably end up in court.
Another “high point” is what property and income is protected from debt collection, right? Well, social security, for one; also, Supplemental Security Income (SSI), private pensions, unemployment compensation, $125,000 if equity in my home, my personal belongings (up to a point) and my care (up to a point), to name a few.
And what can’t a collection agency do? Well, they can’t:
- Threaten to tell my employer or neighbors about the debt, or actually do it;
- Call between 9:00 p.m. and 7:30 a.m. (in Washington);
- Communicate with me or my spouse more than three times in a single week, or…
- …send a notice that deliberately looks like a government document or a telegraphic or “emergency” message…
…just to name a few.
I’m going to keep everything I get from the collection agency – Including the envelopes! – In one place, along with copies of everything that I’ve sent to them. I’m going to makes notes of EVERY phone call from them, including the date, time, subject(s) discussed and names of anyone/everyone involved in the conversation. I’m going to record the details of anytime they contact someone other than me, and anything else I can think of, keeping them in chronological order and trying to make sure that I could actually understand my notes a week from now.
There’s no way I can recount to you everything on the http://www.washingtonlawhelp.org/ web site on this topic, and there’s no reason to, because it’s there and it’s free. The point for today is that you know – Like I know – That we do have rights, we do have some protections and there is help and information out there.
In my experience with businesses, corporations and financial/lending institutions, I’ve found that if I see that I’m going to have a “problem” paying a debt that I owe, and I contact them as soon as I see that coming and communicate honestly, I can almost always make a “deal” that everyone can live with, thus avoiding this kind of hassle, embarrassment and fear. The trick is to be proactive, be honest and then follow-through on what I committed to do.
To quote a public service announcement that most of us have heard, “…nothing is worse than doing nothing.” That’s true, so do something.
Where there’s life, there’s hope.
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