You get a call at 9AM, then 11AM, and it just seems as if the calls keep rolling on in.  Sure, it gets awfully annoying and you would think that the debt collection companies are going to get the clue.  Do you really think you’re going to pay after talking with them 3 hours ago?

Well, even if you intend on paying and you’re just down on hard times, you’re going to learn that these companies are going to do everything in their own power to harass you.

First off, you’re going to need to know the rules according to the FDCPA which stands for the Fair Debt Collection Practices Act.  There are many rules in there such as the following…

• They can only call from 9am to 9pm.
• They can’t call you at work.
• They can’ t harass you.
• They can’t lie to you.
• To get more of the rules, you can get them all here.

What happens if they break these rules?

You can either take them to court, void out your debt, or get them fined by the FTC.  If any of this happens, it’s important that you know that you document what has happened.   You will want to make sure that you write down the date, time, the company name, who you were talking with, and explain the situation.

Is there a way that I can stop collection calls?

To stop collection calls either at home or at work, you can simply send them a cease and desist letter.  You’re going to want to make sure that this letter is certified, so that you know that they have received it.  They can lie to you and say that they never received it, even when they did.

When you certify it, they are going to sign stating that they have received it.  This is now your evidence to show that they have the letter in their possession.

How can I write this letter?

It doesn’t have to be long, but rather just get to the point.  Make sure that you state your name, address, as well as your contact information and account number.  If you want, you can also attach a copy of your bill as well.  The more information that they have, the better it’s going to be.

Here is an example that I would use…

Company XYZ
Address
City, State ZIP

RE:  Account number 1234ABC

To whom it may concern:

I am requesting that you cease and desist any further communication with me.  According to the federal debt collection laws, I’m asking that you solely communicate with me via the mail and nothing else.  You also can’t contact any of my co-workers, family, or friends.

If you fail to comply with this request, I will file a complain with the FTC, as well as the State’s Attorney General’s office.

Sincerely,

Name

Again, make sure that you give them a lot of information.  Account numbers, names, and other things will help.  Also make sure that it’s certified, I can’t stress this enough!  You will need proof that they have received it.

When you owe debt to certain companies, you’re going to find that some are easy to work with, while others just seem like the devil sent them your way.  There’s nothing worse than getting a phone call 4 times a day regarding the same old debt!  When are they going to get the clue?

What you’re going to find out is that when you owe money, they won’t take no for an answer.  You can give them every excuse in the book and even if you mean goodwill and you want to pay those debts off, they are still going to harass you.

You’re going to find out that there are certain rules that they have to follow.  If they don’t abide by the laws, you can report them, void your debts, or even take them to court.

Here are some rules that you should know about…

You can stop them from contacting you. You can simply send them a letter via certified mail and tell them to stop the harassment or calls.  By law, they must only reach you via mail for any further inquiries.  Make sure that you get everything in writing.

They can’t use violence. If they threaten to throw you in jail or they state that they are going to do some harm if the bills aren’t paid, you will want to make note of this ASAP.

They can’t publicize this. They can’t go out and give yourself a bad name.  They can’t create a Facebook fan page stating “Joe Doe is a deadbeat that doesn’t pay his bills.”  If you come across any type of public humiliation, this is against the government collection laws.

Can’t harass you via profane language. If they start dropping the F bomb or using threatening language that is offensive to you, this is again, against the laws in terms of harassment.

Can’t call you constantly harassing. A collection agency can’t call you 10 times a day demanding money.  If this does happen, you’re going to want to send out that letter telling them that you want to stop.

Tell you fake information. They can’t lie to you.  If they are telling lies such as, “We’re sending the cops over” or “We’re calling the cops because you committed a crime”, you’re going to find that lies can get themselves in a lot of trouble.

Debt collectors can’t legally arrest you, garnish your wages, or cause harm.  They can garnish your wages in the future if you’re sent to court.  Of course, there are many other rules/laws that you should know about.  Be sure to refer to this FTC guide on more things that collectors can’t do to you.

Laws can be rather confusing and this is why I always recommend that you get a professional to help you with your problems.  You can only get so much information on the Internet when it comes down to legal advice.  A lot of the times, you don’t even know if they are telling the truth!

Today,  I wanted to give you some tips on what I have found out about the credit card debt laws and how you can use them to your advantage.  You’re going to find out that there are a lot of companies out there that are going to want to take advantage of you, so beware!

Know your state laws

Each state is different when it comes to laws.    You’re going to want to make sure that you know your state’s statute of limitations.  This is going to tell you how long they have to file a lawsuit.  Once that time period is up, they legally can’t come after you.  Many people don’t know this and end up getting into an agreement they shouldn’t have in the first place.

Study the FDCPA

The FDCPA or Fair Debt Collection Practices Act is something that you should ready into.  This is a report that is issued by the government.  They are going to tell you exactly what the debt collection companies can and can’t do.  If you find that they do something that is on the no-no list, you can have the grounds to sue or void your debts.

Be familiar with the bankruptcy process

What a lot of people don’t know is that when you file bankruptcy, it doesn’t necessarily get rid of all debts.  For example, you’re always going to have to pay your student loans off, as well as other types of debt.  Be sure to meet with a bankruptcy attorney if you have any questions, because these laws change quite frequently.

Get professional help

If you’re drowning in debt, you may find that you can’t get the answers that you need online.  Since your question is more than likely going to be rather specific, I would advise that you look into getting help.  Even if you can’t afford the help, it doesn’t hurt to find a non-profit free counseling agency that can get you on the right path.

By studying the laws and knowing what is right and wrong, you can dig yourself out of a hole that you shouldn’t be in.  If you owe the debt legally, then you’re going to have no choice but to pay it off over time.

Your worst nightmare is probably to wake up and find that you’re being sued by the credit card company!  Do you deserve it?  Well, you have to put yourself in their shoes first.  Let’s say that you gave a friend $2,000 and he/she never paid you back.  How would you feel?  A credit card company is in it to make money and they will fight their hardest to get their money back.

Now, let’s say that you find out that you’re getting sued.  The first thing that you want to do is not to worry.  You’re going to find out that if you relax, things are going to go a lot smoother.

Don’t ignore the summons

Many people make the mistake of ignoring these letters.  You can’t do this because it’s going to harm you in the long run.  The judge is going to realize that you’re not going to show up in court and aware the credit card company the win.  This means that they will more than likely be able to garnish your wages and get the money they deserve.

Get financial advice from a pro

You can only get so much information on the Internet.  You’re going to want to get an attorney that’s going to help you with this situation.  If you can’t afford one, you may want to look for a non-profit counseling agency that can get you on the right path.

Look over the FDCPA

The Fair Debt Collection Practices Act (FDCPA) should be something that you look over.  If you find that this company has violated any of these terms, you’re going to want to make note of this.  If they have violated any of these terms, you’re going to find that you may be able to wiggle your way out of the debts.

You may be able to work out something with the law firm

Again, you’re going to want to get professional help to help you guide you with this, but you’re going to find that you’re going to want to contact the law firm and see if you can work something out.  By doing this, you’re going to avoid all the court fees and any other further attorney fees.  Even if you don’t have the full amount, you may be able to settle for less, or work out an installment plan.

Always make sure that you answer this lawsuit.  Avoiding it or lying to the company is just going to dig yourself a deeper hole.  Follow some of the steps above and see how it can work out for you!

You’ve heard that closing a credit card before can hurt your credit score and while it can, you’re going to find that it may help you financially more than anything.

What gets me is that people are so obsessed with their scores.  This is how I see it.  If you’re not applying for any credit in the near future, do you really care if your score is going to drop 2 measly points?  Banks only look at your score from a range anyways and not specific numbers.  Closing your card is only going to drop your score a few points, if anything.

Now, closing a credit card really isn’t that hard, but you may want to think twice, if your card is going to meet any of the pointers below.

#1 Your oldest credit card: If you’re closing your oldest credit card, you may want to think twice.  By closing this card, it’s going to shorten your credit history.  What I would do is just shred it and forget about it.  The credit card companies don’t know if you’re using it or not.  They could still think it’s sitting in your wallet.

#2 It’s your only card: When you only have one card in your wallet, you want to keep some sort of credit going.  If you don’t have any credit available, how are you going to build it?   Unless you don’t care about your credit, you may just want to keep it open.

#3 Your best credit card: Are you disciplined with your credit?  If you are, you may want to keep your best card opened.  Your card with the best rewards are going to help you more with your purchases.  If you get a certain amount in cash back and you pay it off on time, why do you want to close it?

#4 Pay off the card first: Make sure that you always pay off your balances before you close up your card.  You don’t want to do this because it’s going to show that card as a $0 balance and if you have a $1,000 on it, it will look as if you maxed it out.

If you want to close a card that you just opened, or one that you just don’t want anymore, that’s fine.  As I said before, it’s going to effect your score a little bit, but not that much.  Don’t let the credit score nazis haunt you, but instead, make the right decision in closing it yourself.

How do I close my card?

It’s really simple!  Just flip the card over on the back and call the toll free number.  Just be aware that they are going to ask you why and try to keep your around.  Just keep telling them no and it should be a breeze.