Dec 2, 2008 11:46 pm US/Eastern
Consumer Alert: Determined Debt Collectors
There Are Rules They Must Follow, But Odds Are They Will Push Envelope To Find You And The Money You Owe
NEW YORK (CBS) ―
The average American household carries more than $9,000 in credit card debt.
And as the recession deepens, many are falling behind on bills, which mean more debt collectors are calling.
Now, CBS 2 HD's explores when it's harassment and when it's perfectly legal hounding.
If you've been throwing out your bills instead of paying them--the next time you log on to your computer or check your voicemail you may have an unwanted message waiting for you.
"The minute you put that phone number on a credit card application you are saying, 'I consent to have you call me,'" said Beth Givens of Privacy Rights Clearinghouse.
In fact, crafty collectors are e-mailing, texting and calling cell phones to try to get their money, which could end up costing you even more.
"Many people are giving up their landline and going with a cell phone, but many of them are still paying for text messages or calls so they may not want the debt collector to reach them in that way," Givens said.
Added Ken Paterson of Mercator Advisory Group: "The lender really has to pursue multiple channels to get in touch."
Annoying yes, but experts say, also perfectly legal. Still, there are rules the collectors must follow.
"Federal law does place some restrictions where you can't be phoned at 7 a.m. or 10 p.m. or the middle of the night," Givens said.
Other debt collector rules include:
* No calls at work if employer disapproves
* Five days after you're contacted, you must get a written notice of how much you owe and to whom
* You can Write a collector to stop contacting you
* They can still sue for the debt though they also can't contact you if you notify in writing you don't owe the debt
* They cannot threaten to arrest you, or harass by phone
While a collector can call you on your cell, they're forbidden from sending one of those automated calls. You're also allowed to fully negotiate payment via email with a collector. So you don't have to deal with the high pressure phone calls.
Contact the state's
Attorney General's office and the
Federal Trade Commission if you believe a debt collector is violating the law.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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