How to Keep Creditors at Bay

There are few things as stressful and annoying as dealing with creditors who demand money from you that you can't pay right now. Unless of course, it would be dealing with collectors demanding money that you don't owe, which happens more often than you think. Fortunately, the Federal Trade Commission (FTC) has rules restricting what they can do. Here's what you can do to deal with these pesky bill collectors.

Instructions

1

Demand all pertinent information about your debt from any creditor you speak to. This includes the name of the creditor and the full amount of principal, interest and penalties. If the creditor contacts you by phone, then you can insist that they send you this information in writing within 5 days.

2

Immediately dispute any debt that you feel is erroneous. This should be done in writing if at all possible, and a copy should be sent to the collection agency as well as the actual person who contacted you. Send the letters by certified mail and include all copies of pertinent correspondence and other information. Ultimately, the agency must prove that you owe the debt.

3

Don't hesitate to stand up to harassing collectors and hang up on them if they call you after 9 p.m. or before 8 a.m. If that doesn't stop them, you can threaten legal action--and follow up with action, especially if they make threats against you or use abusive language.

4

If you legitimately owe a debt, work out a payment plan with the collector to eliminate it. Make sure that you can keep the payment schedule that you agree to, so that no further contact is necessary. If you default on this plan, the creditor may have the right to sue you or garnish your wages.

5

Notify the Federal Communications Commission (FCC) if you are still being unfairly harassed after following Steps 1 to 4. The Attorney General's office in your state can also help. They have the authority to take action against unscrupulous creditors and shut them down.

6

Creditors aren't the only ones who can sue. You have the right to take harassing creditors to court, and you can take them for up to $1,000 of statutory damages, not to mention your actual damages and legal costs. It shouldn't be too hard to find a lawyer who can take your case on a contingency basis.