The economy being what it is, a lot of people are faced with some financial difficulties. Whether caused by layoffs, illness or just poor financial investments some people are unable to pay their financial obligations. These obligations normally involve credit card debts but may also involve car loans or house mortgage obligations.
Many are already aware of the bad reputation that debt collectors have. Maybe not all, but a lot of them do use whatever means (legal or extra-legal) to force, cajole, compel or otherwise ask you to pay your debts. In our practice, it is not uncommon for clients to complain of threats by credit collectors, phone calls at work or at home, calls anytime of the day, as well as calls to your employer to embarrass you.
The way for you to stop these harassing contacts is to know your rights under the Fair Debt Collection Practices Act. The following are some of your rights:
– Debt collectors cannot call you before 8 a.m. or after 9 p.m.
– You cannot be contacted at work if they are told that you are not allowed to get calls there
– The debt collector can only contact your attorney, if you have one
– The debt collector cannot misrepresent what you owe
– A debt collector cannot use profane or threatening language
Should the debt collector violate any of your rights, you can report the abuse to the Federal Trade Commission at www.ftc.gov.
Another way for you to stop these calls is to send the collection agency a letter in writing and specifically demand that they not contact you by phone or by mail. Once they receive this letter they can only contact you one more time just to inform you that they are not going to be calling you anymore or that the creditor is taking you to court.
It is suggested that you send your letter via certified mail so that there is some proof of receipt by the collection agency of this letter. Should they continue to violate your rights by continuing the contacts, then you can bring them to claims court. They can be held liable for damages up to $500,000. In cases, however, where you are being harassed but you do not suffer any monetary damages, you can still bring the collection agency to small claims court and they can be held liable up to $1,000 for violating your rights.
Be aware, however, that it does not mean that if you take these steps and the debt collector stops harassing you with their collection efforts that you are free of your debts. You are not. The debt collector may stop harassing you, but the creditor can take you to court and do their collection efforts in court. Should your creditor obtain judgment against you in court, then they can garnish or attach whatever properties you may have.
In this situation where a creditor is already doing their collection efforts in court and you are still unable to satisfy your financial obligations, then it may be time for you to consider bankruptcy as an alternative.
(DISCLAIMER: material presented above is intended for informational purposes only. It is not intended as professional advice and should not be construed as such. Rey Tancinco is a partner at Tancinco Law Offices, a professional corporation with offices in San Francisco, Vallejo, and Manila. The law office website is at: tancinco.weareph.com/old. Rey Tancinco can be contacted at (800) 999-9096 or (415) 397-0808 or via email at: attyrey@tancinco.com
