Is The Debt Collector Playing Fair

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Get Me Out Of Debt
Owing large sums on your credit cards and other bills is a very stressful situation. Every dime of your paycheck is allocated before you even cash it, you have collection agencies calling you both at home and at work, and you constantly have to worry about making ends meet. Worst of all, with the incredibly high interest rates you're paying.

Under such an overwhelming condition, you may... Read debt consolidation 1 article



Debt Consolidation Companies
Thanks to Gordon Brown, Chancellor of the Exchequer, increasing interest rates as an early Christmas present many of us will find the demands on our pocket a little harder this year. So what should you do if, when the New Year breaks, you find yourself one of the millions overcome by debt and searching for an escape route?

More people than ever struggle with debt in the U.K. and debt co... Read debt consolidation 1 article



Is The Debt Collector Playing Fair
If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "debtor." If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a "debt collector" or bill collector as they are most often called.

The only job that is worse then being a Bill collector on the Scumbag Scale is the Repo Man. Bill Collectors are like lawyer, they're only lying when there lips are moving. If you're talking to a bill collector you need to know your rights and the law.

You should know that the Fair Debt Collection Practices Act requires that debt collectors treat you fairly by prohibiting certain methods of debt collection. Of course, the law does not forgive any legitimate debt you owe.

Here are some commonly asked questions about your rights under the Fair Debt Collection Practices Act.

What debts are covered?

Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.

Who is a debt collector?

A debt collector is any person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis.

How may a debt collector contact you?

A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves.

Can you stop a debt collector from contacting you?

You can stop a debt collector from contacting you by writing a letter to the collection agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.

May a debt collector contact anyone else about your debt?

If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

Now the truth. After years of helping people with the unfair collection practices of the scumbag bill collectors I can tell you they will do anything to find you. The lie about who they are. They lie about why they want to talk to you. They threaten, they bribe, they promise not to tell and the only way you can tell their lying is if they're talking. That's the give away.

What must the debt collector tell you about the debt?

Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

May a debt collector continue to contact you if you believe you do not owe money?

A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

Little know fact is that you have a right to EVERYTHING involving the debt. If requested, the bill collector must provide all documentation showing you owe the debt. All contracts, all signed purchase receipts, all addendums to the contracts and all payment history. Now the problem: How can they provide all this information if they bought the debt from some other company? In all likelihood, the original company has disposed of the original documentation. If requested, they must provide ORIGINALS, not copies printed from micro film.

What types of debt collection practices are prohibited?

These are the law but the reality is the bill collector probably will not care. But still, here they are:

Harassment

Debt collectors may not harass, oppress, or abuse anyone or any third parties they contact. For example, debt collectors may not:

- use threats of violence or harm;
- publish a list of consumers who refuse to pay their debts (except to a credit bureau);
- use obscene or profane language; or
- repeatedly use the telephone to annoy someone;

False statements.

Debt collectors may not use any false statements when collecting a debt. For example, debt collectors may not:

- falsely imply that they are attorneys or government representatives;
- falsely imply that you have committed a crime;
- falsely represent that they operate or work for a credit bureau;
- misrepresent the amount of your debt;
- indicate that papers being sent to you are legal forms when they are not; or
- indicate that papers being sent to you are not legal forms when they are.

Debt collectors also may not state that:

- you will be arrested if you do not pay your debt;
- they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or
- actions, such as a lawsuit, will be taken against you, which legally may not be taken, or which they do not intend to take.

Debt collectors may not:

- give false credit information about you to anyone, including a credit bureau;
- send you anything that looks like an official document from a court or government agency when it is not; or
- use a false name.

Unfair practices.

Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not:

- collect any amount greater than your debt, unless your state law permits such a charge;
- deposit a post-dated check prematurely;
- use deception to make you accept collect calls or pay for telegrams;
- take or threaten to take your property unless this can be done legally; or
- contact you by postcard.

How many of the previous listed items have been violated in your case? Probably a lot.

What control do you have over payment of debts?

If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.

What can you do if you believe a debt collector violated the law?

You have the right to sue a collector in a state or federal court within one year from the date from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1000. Court costs and attorneys fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collectors net worth, whichever is less.

Where can you report a debt collector for an alleged violation?

Report any problems you have with a debt collector to your state Attorney Generals office and the Federal Trade Commission

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IVAs and Your Monthly Repayment

An IVA, (Individual Voluntary Arrangement) is a formal agreement that allows a person in financial difficulties avoid petitioning for bankruptcy. New monthly repayments are arranged, based on affordability to the debtor, and these repayments are paid for an agreed period, normally 5 years. When the repayments have been completed, any outstanding debt is written off, and the debtor is debt free.

As a debt consultant that specializes in IVAs, one of the most common questions that I am asked by my clients is "How much will my repayment be?"

So here is a brief description of how the IVA repayments are calculated, but before I start certain points must be explained.

The IVA repayments need to reflect an 'honest' affordable figure.

The creditors will need proof that the debtor can afford the repayments and no more.

The success or failure of an IVA will be depend heavily on the debtor adopting a realistic financial approach.

The details of the debtor's financial position are lodged in court. This makes the IVA a legal process. Therefore, any debtor that tries to manipulate the size of the repayment by either overstating or understating their true financial position, will be putting their IVA in jeopardy, not to mention committing a criminal offence.

The first part of the calculation is establish the debtors income. This needs to be the debtors net income, i.e. the income that the debtor receives after their taxes have been deducted. Any other incomes that the debtor may receive also need to be calculated, e.g. any overtime, bonuses or commissions that do not form part of the net income, a part time job or any state benefits that may supplement the debtors income.

Once this figure has been calculated the next step is to analyse the debtor's expenditure. All general living expenses need to be accounted for. Examples of things to include are rent and housing associated costs, food and clothing, travelling expenses, and an element of expenditure for sundries. What ought to be excluded at this point are the current debt repayments. They will cease to be paid and should not be calculated. Every debtor has their own unique circumstances and therefore one person's expenditure will vary from another, so it is essential that all relevant expenses are noted.

It is important to realise that luxury items, nonessentials and excessively high expenses will be challenged by the creditors, when they are given their opportunity to vote. Hence the debtor needs to be honest with themselves in regards to what will be deemed acceptable to creditors as part of a reasonable daily budget.

Once both sides of the equation are assembled, i.e. the income and expenditure, the figure is established.

The monthly repayment into an IVA will be equal to what remains after the expenditure is deducted from the income. This figure is known as the disposable income.

It must be stressed that there are established guidelines, set by the creditors, that determine what level of repayment will be deemed too low for an IVA to be considered. This level is determined by the value of the debts that the debtor has, but it is generally considered to be 25% of the debt, plus costs, as a minimum. N.B. Recently some creditors have modified these minimum repayment levels to 40% plus costs.

Now that the repayment has been calculated, and assuming that the amount is higher than the minimum level for the size of debt, the insolvency practice that is acting on behalf of the debtor will require proof that the submitted figures are accurate.

Once the figures have been verified, and the insolvency practitioner has made any required adjustments, the figure ought to stand up to the scrutiny of the creditors.

However, if the creditors do insist on making modifications to the repayment amount before they will accept the IVA, the debtor will be informed of the creditor's modifications, and can withdraw from the IVA process if they cannot agree to the creditor's changes.

Taking the first step of asking for help with a debt problem is never easy. However, do not feel you are on your own. I invite you to call 0800 088 7503. Your call will be free and will be treated in the strictest confidence by our small, specialist team of advisers. Each of whom has been trained to the highest standard in finding ethical solutions for all aspects of personal debt related problems, particularly Individual Voluntary Arrangements and, what's more, none of them are driven by sales targets.

However, if you are not ready to discuss your circumstances just yet, but would like further information about IVAs, click here and download any of our 6 free guides. They are packed with great tips and solid advice on all the aspects of IVAs you need to know.




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Is The Debt Collector Playing Fair
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