With the economy struggling to stay afloat and unemployment higher than it has been for years, a lot of people are falling behind with paying their credit card bills. First, let me say that I would rather you fall behind with your credit cards than your electric bill. As a matter of fact we teach that you should prioritize you budget around the four walls, and only after you have taken care of necessities should you attempt to pay your debt. Notice I did not say, don’t pay your debt, I said pay necessities first and then debt. If you can wake up, take a warm shower, eat breakfast and drive to work, you are a lot more likely to win than waking up with no electricity and wondering how you are going to get to work now that your car has been repossessed. We want you to make good on your commitments but make sure you don’t sacrifice your family for an irrate collector.
Do you have any rights?
What should you do if you have gotten behind with your credit cards? First, you need to know that even though you are in debt you still have rights. Your rights as a person in debt are defined in the Fair Debt Collection Practices (FDCP) Act. Wikipedia states that the purpose of the FDCP Act is to:
eliminate abusive practices in the collection of consumer debts, to promote fair debt collection and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information’s accuracy
The first time you are contacted by a debt collector can be a very scary moment. Your mind starts racing, you don’t think straight and often you will make bad decisions. If you find yourself in this situation first you must remain calm and in control. Listen to what is being said and determine if you are really the person that the collector is looking for. Many times, collectors found you because your name matches the name of some that has some debt. You may not even owe the debt that is being collected but unless you take control of the situation the collector will take advantage of you.
What should you do?
Within five days of being contacted, the FDCP Act requires the collector to provide you with a written notice detailing the exact amount of the debt and the name of the creditor that you owe money. A word of warning, you will have to ask for the proof that you owe the money, they won’t send it to you otherwise. Also, if you feel you don’t owe the money, they must provide information on what action you need to follow to dispute the charge. Again, they won’t want to send you this information and will very likely tell you there is no need to dispute the claim, you just need to pay it.
If you feel you are being falsely accused you need to send a letter, via certified mail, disputing the amount you supposedly owe and asking the collector to verify the actual amount and that you really owe the debt. The collector, according to the FDCP Act is then required to get verification of the debt or provide a copy of the judgment against you. If they can’t provide you with this information, simply ask them not to contact you again until they can provide the information.
Whatever you do, don’t allow the collector to feel like you are a pushover. You must remain in control and above all do not let the collector guilt you into doing something that you will regret. If you do owe the debt you may be able to set up some sort of settlement with them depending on how much you owe and how long it has been since you made a payment. If you do make a deal with a collector, do not send the payment until you have received a written agreement of the details of the deal. If you cannot provide proof of the deal, it is very likely the deal will not be honored.
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