If you have missed a debt payment or simply unable to afford your monthly payment, chances are your experiencing notifications from a debt collector. From letters in the mail to daily phone calls, collecting on the debt is the collector’s job. While some do act in accordance to the guidelines outlined in the Fair Debt Collection Practices Act, many others end up violating the rules and even downright lying to you in attempt to collect. Consumers beware, here are the top three lies from a debt collector:
1. Give me your payment information and I will fix your credit — False. Credit repair takes time and there isn’t much one debt collector can due to fix your credit report. While resolving your missed payments and paying off your balance will improve your credit in time, the negative account history will still be visible to lenders and likely to plague you for a few years to come.
2. Pay your full balance today and we won’t sue you — False. Yes, a lender can sue you in court, but that process doesn’t happen overnight. In order to be sued, your direct account holder would have to file the paperwork with your court and serve you with a court order. Therefore, a third party debt collector cannot initiate the lawsuit. Further, the Fair Debt Collection Practices Act prohibits collectors from making threats of lawsuits, which means these threats could actually land them in trouble with the law.
3. We will contact your employer, friends and family if we have to in order to collect on the debt — False. Under the Fair Debt Collection Practices Act, you have the right to be free from harassment or intimidation by a debt collector, including violating your privacy. If a debt collector calls you at work or makes any attempt to disclose information about your debt to anyone other than you, report them to the Federal Trade Commission.
If you are experiencing trouble with debt collectors or are unable to repay your debt, contact a bankruptcy lawyer in Dayton to discuss your options.