SUBMITTED: Thursday, October 19, 2006
POSTED: Thursday, October 19, 2006
I would first like to say thanks to ripoffreport.com just for existing! When I was in this position many years ago there was no internet like today. This site, even with the mudslinging, is a place where if you look through enough of that mud you can find a diamond in the rough.
I have had dealings with collection agencies in my past, and brother let me tell you it was brutal. Everything the people in this forum have accused this debt collection agency of, was done to me by the debt collection agency who hounded me. Their methods have been around for longer than I've been alive. In fact it's because of the long standing abuses of debt collection agencies that THE FAIR DEBT COLLECTION PRACTICES ACT was created as an amendment to CONSUMER CREDIT PROTECTION ACT. Go to the following two sites and read about both.
THE FAIR DEBT COLLECTION PRACTICES ACT
http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm
Consumer Credit Protection Act
http://www.fdic.gov/regulations/laws/rules/
6500-200.html#6500tilaccpa
I had a perfect credit score and then through no fault of my own I was out of work with no income and no immediate prospects. Soon I was behind in my payments to my creditors. The first thing I did was wrong. I was looking at a financial crisis, into the abyss. I knew my credit was going to be ruined no matter what I did, and had a world of other horrors sure to come, within 3 months I would lose my home, my car, my spouse, my health, my mind, face two lawsuits, have to hire three attorneys, (only need two but caught one stealing my money so had to fire him and hire the third). So I did what most sane people would do I hid, I sunk into a deep depression, went into denial, and resigned myself to the fact that my life was over.
That was wrong, ... reasonable but wrong none the less, because at that time I didn't know there were some things I could do.
The second thing I did was right, I tried working with my creditors (not debt-collectors, Do not talk to them!), still I could have been more right had I known then what I learned later. I contacted my creditors and worked out smaller payments.
Now I was correct in my appraisal that I was to face ruin but still had I gone to my creditors first I might have delayed or outright avoided the debt collection agencies all together.
If things even look like you can expect financial problems I suggest you call your creditors beforehand. Don't wait, ASK NOW! Your creditors aren't going to magically offer reduced or no payments out of the blue. Call them and ASK for what you want. If you ASK the worst answer you can possibly get is NO.... but you just might get a YES!!! That applies to everthing in life too. I finally learned that.
ASK,... THE WORST POSSIBLE ANSWER IS NO.
... and I've gotten plenty of NO's, but I can't tell you the times I've asked when I used to never ask, and gotten a YES for an answer, which has blown my mind. This is one of those times. Ask your creditors going into AS LITTLE detail AS POSSIBLE, be as unspecific as you can to get a break in payments or reduced payments for as long as you can, hopefully the arrangement you negotiate here buys you time to regain your financial legs.
Tell them you have limited funds due to unforeseen events and you need to see if you can have , let's say, six months of payments stopped. Now they will probably balk at this but you don't want to negotiate from low to high, but rather high to low. They may want more detail. Give them only as much as you feel you have to. They will probably give you their standard speil and some standard offer.
Graciously accept whatever they offer. If its a reduced amount of payments for several months or a let you forego one months payments, say THANK YOU! Ask for an email or letter confirming this arrangement. If they send an email print a hard copy immediately. Whatever you get you are in a better position than you were and you're proactively lightening your load regardless of the final outcome. Make the journey as painless as possible.
Next you should buckle down! Even if you think you know there is relief down the road, all to often something happens, like another unexpected expense or money you were counting on gets delayed for a time. Cut off the cable, stop the dance classes, and karate school, sell the extra car, boat, anything you can seriously manage without, ANYTHING that will put money in your pocket. If you have children, remember your children are watching you and no matter how they complain, you may well be teaching them a survival skill. Talk to them and tell it straight. DO NOT negotiate; you're in charge. They may say they HATE you, but if they have to move into their new 1 bedroom cardboard box on the sidewalk, then they truely will disrespect your weakness in not doing what was right. You will get their respect earn self respect.
Also, seriously consider dropping life and health insurance.
If you live where there are free-clinics this too needs to be put on the table. If you're out of work you probably qualify for free-clinics and those insurance premiums which your company paid the lions share of will now be all yours. So the $30 to $60 you had coming out of your paycheck for group health insurance, might now be a COBRA payment of $500 a month.
Find ways to cut expenses. Contact agencies which can give you assisstance. The salvation army might qualify you for a months rent and a months utilities. There may be other agencies which can do the same. Where I live the Sa lvation Army paid one months rent and one months utilities and I found two other agencies, each covered one months utilities. There's AID FOR DEPENDANT CHILDREN and FOOD STAMPS.
Ask each agency and they may have a pre-printed list of agencies which provide any number of free services.
Regarding this issue of morality, jerks like Rick - Ft Lauderdale, Florida, Stephanie - Columbus, Ohio, and Bobbie - TOLEDO, Ohio, are being deceitful when they comment on a debtors morality. In truth their are using a tactic designed to make you feel guilt in order to get you to sned them money. They speak of Honor and consistantly for you to PAY YOUR DEBTS.
Again, in truth, they have zero concern as to your indebtedness except as it affects their ability to harrass and intimidate you into sending them money so they can increase their commission.
Don't talk to these inscrupulous vermin and never send them money. If you have the ability, with no self interest to protect, and decide you can pay all or some of your debt contact the creditor and make arrangements with your original creditor or go to an agency or attorney and have your payments handled though them acting on your behalf to avoid these debt collection agencies.
CHANGE YOUR PHONE NUMBER OR CUT OFF YOUR PHONE SERVICE AND GET A PRE PAID CELL PHONE. Even if you change your phone number and have the number unlisted these debt collection agencies have methods to get your new unlisted number. If you must get a new number but have it placed in a name other than yourself or any family member or person you listed as a reference on work or credit applications. If you are contacted by any debt collection agency tell them you can't talk right now, ask for them to call you back in a day or so. Then check the laws in your area regarding recording telephone conversations.
Some states allow you to record without notification and some require you to tell any party to a conversation that they are being recorded. Get an ANALOG TAPE RECORDER NEVER A DIGITAL RECORDER. Some courts do not allow digital recordings as evidence.
1. Prepare it so you can immediately start the recording if you receive a call.
2. Never identify yourself to a caller first! It's a good rule of thumb to get into the habit of never answering a callers inquiry of anyone they name , including yourself, as to if they may speak to that person. Proper phone ettiquette, and in this case by law, is for a caller to first identify themselves, then ask for the party with whom they wish to speak. In fact by law these debt collectors must identify themselves personally, and the name of their company. They are proscribed by law from stating to anyone other than the debtor that they are attempting to collect a debt, so you stop them cold in not identifying yourself.
Make sure it's a recorder that doesn't send a clicking sound to warn anyone they are being recorded., then and only if your state law requires, do you inform the party with whom you are conversing that you are recording the conversation. Most of these debt collectors are about to break many laws so they can torture a payment from you and if they know they are being recordered will not continue with their normal illegal activities once they know they are being recorded. If you are required by your state law to notify them they are being recorded and they say they do not give you permission to record the call, politely laugh in their face and HANG UP. They have just shot themselves in the foot.
3. Start your recorder.
4. Make them identify themselves.
5. Make them identify their company.
6. Ask them what this is in regards to.
7. Ask them if they are recording you.
8. Make them repeat their name, their company name, and the date and time, whom they are looking for, and what the matter to which they are inquiring relates to.... THEN, if you want to continue, you can identify yourself.
9. Read the THE FAIR DEBT COLLECTION PRACTICES ACT and if they have violated the law report they activity to the Attorney General in your local. Sue them, you have taped evidence. You are guaranteed a certain sum if the evidence proves they violated THE FAIR DEBT COLLECTION PRACTICES ACT. Not only this but you may become a party to a class action in the future. Generally the more eveidence you have gets you more more money in any settlement.
Quit worrying yourself, you can file for Bankruptcy as a final resort; Bankruptcy can eliminate or reduce your debt, depending under which Bankruptcy Chapter you file under, and completely stop any creditor or agency from ever calling you, your family, friends, or work again.
I am not giving legal advise, because I'm not a lawyer. Contact either a lawyer or an agency which can advise you as to whether what I have advised is legal. It's always best to have someone who knows best how to protect your legal rights to advise you. Be aware though that many of the so called credit repair agencies are shady and are there not to help you but line their pockets with your gold at the very time you are most financially vulnerable. Make sure the agency is legitimate. Contact places who can point you to agencies who are legitimate, free, or paid on a sliding scale.
My favorite recording to leave on my answering machine goes something like this:
Hi this is (identyfy the phone number not your name XXX-XXXX), no one is available to answer your call, if this is a friend or relative please leave your name and number after the tone, if this is in regards to a bill please leave your name and number after the dial tone.