Debt Collections and the FDCPA

If you’re upside down and sideways financially, like so many people in our country, then undoubtedly you have received calls from debt collectors.

I’ll admit there are numerous debt collectors who are very professional and reasonably compassionate, but most are not.

They have one job and that job is to squeeze money out of you.  Most get paid on commission, which is tied to what they get you to pay, and they are given quotas to meet.  So, they are incentivized to do whatever they can to intimidate, coerce, and threaten you into giving up some cash.

Of course, they assume you have money to pay and are purposely withholding cash.  That’s what burns me.  The debt collectors I have spoken to always get around to, “What are you prepared to pay now?” 

I’m like, “If I had money to pay, I wouldn’t be behind in the first place!”

If you do have some ability to pay, and are willing to work something out, DO NOT pay anything on the spot over the phone. DO NOT pay anything at all, until you have received in writing, on their company letter head, verification of the terms you and the debt collector agreed to.

If you make a payment or even a series of payments without first getting an agreement in writing, as to how those payments will be applied, and how those payments will affect the your debt, you may as well have simply thrown that cash out your front door.

These debt collectors are notorious for losing payments or forgetting what they agreed to.  It is your responsibility to be able to provide proof of payment and proof of the agreement under which you paid.

I can't tell you how many people I have spoken to who made a payment over the phone or sent a check in, only to discover that money was never applied to their debt.  And when they have tried to check on it, gee, nobody knows anything about any payment.  You talked to who...? 

If you can't prove it, the payment or payments never happened.  And what are you going to do?  Hire an attorney?  They know you can't afford that.

This may sound harsh, but don't ever believe that a debt collector has any compassion for you or your situation.  Regardless if it was a medical situation, a job loss or whatever, they simply do not care.  You are, by default, simply a liar.  

Even if they sound as though they want to be your friend and work with you, don't fall for it!  What they are doing is "building trust," so that you'll drop your guard and they can manipulate you easier.

Don't forget, they have your credit report and any other public information that’s readily available sitting on the screen in front of them.  They can see whether that outstanding debt originated with a medical bill.  

One guy said, “Look you have a card with nothing on it, that has a credit limit sufficient to pay off this debt.”

My response was, “That doesn’t make sense - to pay off one debt by creating another!”

He persisted by saying that I would be getting rid of bad debt and creating good debt.  Which, technically he was right.  But, the problem was, I had no income and no ability to pay good debt or bad debt, so it was a mute point.  


I could have paid off the bad debt and created good debt.  But, in no time at all, that good debt would have become bad debt, and then I would have had two negatives on my credit report instead of one.

In their determination to get some type of payment out of you, they’ll often forget there are rules they must adhere to which are spelled out in the Fair Debt Collection Practices Act (FDCPA).  

If you are having financial difficulties, you must read the Fair Debt Collection Practices Act.  You should also visit the Federal Trade Commission site, where they have a nice "Frequently Asked Questions page.  Read these and take notes.  I can't stress this enough.  Read it!!!


You should also visit your State's website regarding debt collections.  You can Google that by typing in "debt collections state of ???" and then input whatever state you live in.

Keep in mind, they’re only allowed to call you once per day - so if you answer their call the first time, they should not call you again.

If you want to stop them in their tracks, when you answer, just let them know you’re recording the call and they will end the call.  That in itself should give you a heads up to their practices.  They will be recording the conversation, but they don’t want you to - hm...?  What do they want to hide?

Here's an interesting side note...  Debt collectors very often use aliases, because they don't want you to have anyway of tracking them down.  They'll often use actor's names.  But again I ask, why do they have to hide their identity if they're behaving in an honorable manner?

I record them anyway, without notifying them.  I checked with my State, and discovered I legally am permitted to record the call provided at least one party to the conversation agrees to the recording.  Since I am a "party to the conversation," and agree to the recording, I fall within what is legally allowed in my State.  

But, even if I legally could not, I would record them anyway.  The recording may not be able to be used in a court of law, but you can certainly use it to accurately remember and recreate the conversation on paper, which can be used in a court of law. 

Trust me, you’re going to want to have excellent records regarding your conversations - time, date, and content.  It could put money in your pocket.  I collected nearly $8,000, because debt collector's illegal actions!

If you know your rights, they cannot threaten you.  If they start getting belligerent and threatening, disengage.  Even if you do not know the law, you certainly do not have to listen to somebody being argumentative or putting you down.

The downturn in our economy caught a lot of people off guard, and caused a tremendous number of folks to lose their jobs.  Let these debt collectors walk in your shoes, before they start name calling - which, by the way, is against the law.

If they’re calling you on your cell, that can get really old, really fast.  So, here’s a little trick.  When they call, whether you answer or not, their number will be saved by your cell.  Add that number to your Contacts List and assign a “no ring” tone to the number.

Now when they call, on my cell all I receive is a beep letting me know I missed a call.  

Oh, and one other thing...  When assigning a name to the caller in my contact list, I always put two “z’s” in front of their name.  That way the number falls to the end of my contact list, and I never see it when looking up my real contacts.

But wait, there's more...

Laws regarding debt collection spell out fines that must be paid if a debt collector violates these laws. Remember I mentioned earlier, I collected nearly $8,000 from Debt Collectors.  Here's how...

By keeping good records, you can actually sue the debt collectors for violating the FDCPA.  There are attorney's who will sue these lenders on your behalf, at no cost to you.  You have to split the settlement fee the collector pays with the attorney, but it's pretty cool when the debt collector pays you!

All you have to do is keep good records - preferably recordings, and make these recordings available to the law office. They'll do all the rest.  Assuming the debt collector violated the law, you'll get a check from your attorney for a few hundred to a couple of grand in a few weeks.

It pays to know Know Your Rights!  Literally!