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4 Myths Debt Collectors tell Consumers

When a debt collecting company purchases defaulted debts from a credit card company, their main goal is to collect on Debt Collectors myths those past due accounts.  Many of these debt collecting companies put in place debt collecting tactics that are harsh and illegal, which results with the consumer being put in a state of panic.   That’s why it’s important to know some of the myths and lies debt collectors will say or use to collect on a debt.

  1. Going to Jail  - a consumer cannot go to jail for a collection account, in order for a debt collector to enforce any legal action,  you have to be served  and go to court.  Many debt collectors will falsely tell consumers if you do not pay this debt you are going to jail, those accusations are false and illegal, that’s why it’s important to know if a debt collector is following the laws of the FDCPA.  One final note, “Debtor Prisons”, in some states, debt collectors have found legal loopholes which have allowed them to get bench warrants for consumers who have not paid their outstanding debt.  That’s why it is important to know the Debtors Rights in your state.
  2. Getting fired from a Job – debt collectors are not suppose to call your job and discuss your personal finances with your employer it is against the laws of the FDCPA.  If debt collectors calls your job and harass you it is important that you report it to the FTC at Complaint Assistance.
  3. Contacting your Neighbors – if a debt collector contacts and discusses your debt with your neighbor that is against the law and violates the rules of the FDCPA.  The only person’s debt collectors can talk to is the consumer who owes the debt or the consumer’s attorney.  Debt collectors do not suppose to talk to the spouses or any other relatives about the outstanding debt.
  4. Paying Interest and Penalties – it is important to know the original balance that was owed to the credit card company before the balance was sold to the debt collector.  Escalated fees such as penalties and interest are not supposed to be added to the outstanding balance owed.  You have the right as consumers to question the debt collector on how were those fees were calculated.

I thought I would share this video provided by the FDCPA on the do's & don't of debt collectors.



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