August 23, 2006

Making Used Car Dealers Look Honorable

Ever since I read Pinko Feminist Hellcat's post about the abuses by collection agencies (trying to make people pay debt they don't owe), I've been working on a low level seethe.

The tactics collectors use on those who owe debt are bad enough, but turning the harassment to people who either no longer owe, or who never owed in the first place, is truly offensive.

Lo and behold, MSN offers something semi-useful: a how to avoid "sleazy new debt collector tactics."

Know your rights. The Privacy Rights Clearinghouse has prepared a fact sheet for consumers dealing with third-party debt collectors.

Get the name of the collector, its address and a telephone number. You can tell the collector on the phone to stop calling, but that won't preserve your rights under federal law.

Send a certified letter, return receipt requested. Make it clear the collector has contacted the wrong party, that you don't owe the debt and that you don't want to be called again.

Contact regulators. If the collector continues to call, seek help. Typically, your state's attorney general's office handles complaints against collectors. You can also complain to the Federal Trade Commission, which typically doesn't intervene in individual cases but may act if it sees a pattern of abuses.

Monitor your credit reports. If a collection agency posts a bogus debt on your credit report, dispute the item immediately with the credit bureaus. Include copies of the certified letter you sent the collector and any complaints you filed with regulators. Don't wait until you're about to apply for a loan to check your credit report; you'll want at least a few months' head start to dispute any errors.

Consider a lawsuit. Consumers can bring lawsuits against collectors that violate the Fair Debt Collection Practices Act, either on their own behalf or as part of a class action. Contact the National Association of Consumer Advocates for referrals to attorneys who handle such cases.

The advice about the Attorney General's office is right on. You already pay them, and this is what they do. And as I found out when my phone service was illegally "slammed", the Attorney General's office folks are even happy to do the job.

Furthermore, the Privacy Rights Clearinghouse has put together a helpful guide with tips, laws, and even sample letters.

Give 'em hell.

Posted by binky at August 23, 2006 07:43 PM | TrackBack | Posted to Economics


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