Debt Mutiny!

“Creditors have better memories than debtors; and are a superstitious sect,
great observers of set days and times.”
- Benjamin Franklin

When a debt becomes 180 days delinquent, most creditors will write it off and turn it over to a collection agency. At this point, you no longer owe the original creditor, you now owe the collection agency. It is ALWAYS best to work with your original creditor before your account gets sent to a collection agency. Even if you pay off the debt, it will be on your credit report as a paid collection, which is a NO BETTER than an unpaid collection.

Collection agencies are governed by laws that prohibit certain abusive practices.
They are not allowed to:
* Call your office;
* Call your home before 8 a.m. or after 9 p.m.;
* Address you in an abusive manner;
* Call family or friends in an attempt to collect your debt;
* Harass you;
* Make false or misleading statements; or
* Add unauthorized charges.

Collection agencies collect debts for a fee or percentage of the total amount owed. Some agencies also purchase debts from creditors for a fraction of the value of the debt and pursue the debtor for the full balance. They can make a profit if they can get debtors to repay even a fraction of the debt. Collection agencies sometimes resort to unfair and abusive measures to collect debts.

Common Debt Collector Tactics:
* Misrepresenting the character, amount or legal status of a debt;
* Demanding more than was owed;
* Insisting the consumer owes a debt that he or she does not;
* Claiming a debt was legally enforceable when the statute of limitations had long since expired;
* Attempting to collect on a debt that’s already been paid.

It is in your best interests to read the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act. These laws exist to protect debtors from unfair collection practices. Clear violations of debt collection laws are reportable to the FTC, and debtors can sue the offenders in small claims court.

Know your rights. There are limits on how far a debt collector can go. Even if you have owe a debt, you are entitled to fair and respectful treatment.