Friday, September 11, 2009

Debt Collectors Using Texting to Contact Consumers

Some debt collectors are resorting to sending text messages to contact consumers. Consumers should not have to pay to be contacted by a debt collector. Since some phone plans charge per text message, the consumer is being charged each time a debt collector sends them a text message.

The Federal Trade Commission is working to change the Fair Debt Collection Practices Act to include banning cell phone contact and texting.

For more information, go to

Thursday, September 3, 2009

Abusive Debt Collectors

CBS News reported on a woman who was being harassed by debt collectors for a bill she didn't owe. The debt collectors claimed she owed $4400. She paid $900 to settle because she felt she couldn't pay an attorney to fight the claim. She did not realize that the debt collectors would have to pay her attorneys' fees if she was successful, so she could have hired an attorney without any cost to her.

Andrew Cuomo, New York Attorney General, sued the group that was harassing the consumer. The difficult part can be that these debt collectors close their offices (after being sued numerous times) and then re-open under different names.

Watch the video.

Wednesday, September 2, 2009

Zombie Debt

Zombie Debt is old debt that has resurfaced. The debt may have been settled in bankruptcy proceedings, may not have been your responsibility, such as identity theft, or the statute of limitations may have expired.

If you have been contacted by a debt collector regarding an old debt, send them a certified letter asking for proof that you owe the debt. Check the statute of limitations on old debt. If the collector files suit against you, attend the hearing with evidence that the statute of limitations has expired. Do not agree to make a payment to show good faith, because that will re-establish the debt.

Even if you owe the debt, you have rights. Send the debt collector that is harassing you a cease and desist letter by certified mail. If the debt collector continues to harass you, you can take legal action.

If you have requested proof that you owe the debt and the debt collector cannot provide it to you, be sure to fill out a credit report dispute so that it will be deleted from your credit report.

If you need assistance with understanding your rights, please contact us at 866.553.3272.