In life, honesty is always the best policy, but not when it comes to communicating with a debt collector. In fact, it is best to use caution when making any statements to a debt collector, as they could be recorded and used against a person later. By no means should the consumer lie to the debt collector, but he or she should at least use reasonable care when talking with someone who is collecting a debt.
It is important to be aware of the tactics that many debt collectors will use to get you to pay on a debt. They often will resort to scare tactics or bullying to put the individual in fear of losing his or her home or livelihood if he or she does not pay on the debt. One key piece of advice is to know that all consumers have rights under the Fair Debt Collection Practices Act (FDCPA).
Debt collectors are legally prohibited from using fear, threats or abusive language when collecting on a debt. If a debt collector does use these types of practices, the consumer can report the debt collector and to seek compensation for any damages incurred as a result. Here are the top disclosures you should never make to debt collectors.
- Do Not Provide Personal Information.
Many debt collectors will push the consumer to provide a significant amount of personal information over the phone, and they will make it seem like this information must be provided or else. However, it is extremely important that the consumer not provide the collector any personal information, which boils down to essentially anything he or she would not tell a stranger, including the following:
- Email addresses;
- Employer’s information, including past employers;
- Additional phone numbers, other than the ones they already have;
- Family information, including name of spouse and spouse’s employer;
- Bank account information;
- Credit card information;
- Social security number.
- Do Not Admit Ownership of the Debt.
It can be tempting to agree with the debt collector that the debt belongs to you but admitting ownership of the debt can only lead to problems down the road. Even if the consumer does owe a certain amount of money to the debt collector, the amount owed may not be what is being claimed by the collector. It is always best to first ask for written confirmation on the debt to ensure that the amount owed is correct. Agreeing right away may make the consumer pay on an amount that he or she does not actually owe.
- Do Not Pay Over the Phone.
The collector may try to get the consumer to submit payment immediately over the phone, but all this does is give the debt collector access to either the consumer’s bank account or credit card. While the consumer may agree to make one small payment, the debt collector then can go into the account later to receive an even larger amount. If the consumer wishes to make a payment, it is best to do this by sending a check only after receiving a written agreement regarding the payment arrangement.
- Do Not Cave into Threats.
Debt collectors will try just about anything to get payment on their accounts, including telling the consumer that they will be reporting them to the police or filing a legal claim that they have no intention of pursuing. Under the FDCPA, these types of threats are actually illegal and should be reported to the appropriate authorities if made. They may also try to play on the consumer’s emotions to get payment on the debt, but it is important to not fall into these traps. Stay calm and restrained as much as possible.
- Do Not Ask to Speak to the Manager.
Many people believe by asking to speak to the manger, they will get a lot further when it comes to being treated fairly. However, the problem is many of these managers in collection agencies only care about receiving payment on the account. They are there to make sure the collection agency is being paid, not making sure the customer is treated fairly or with compassion.
If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.