Debtors' Prison: Escape Collectors' Calls

July 14, 2008 — -- In a tough economy, more people are likely to be hearing from debt collectors. But guess what? With one simple step, you have the power to make them stop calling. If you're in debt, it's probably your own fault and it's definitely your responsibility. But you don't have to take abuse. Debtors' prisons don't exist anymore, but debtors' rights do.

Click Here to Ask Elisabeth Your Consumer Questions About This Topic or Any Other Consumer Issue

Collection agents make commissions that range from 15 to 50 percent of what you owe. I once asked a couple of them to share their brand of psychological warfare.

Collectors know an awful lot about you, but they don't even use their real names. They use fake names just in case they ever encounter a case of debtor's rage. To get you on the phone, they alternate between using your first name and your last name.

Here's another trick: Collectors will pretend they're putting you on hold to plead your case to a manager. They act like they're on your side. Instead, they doodle or go get some more coffee.

Despite creative tactics like this, federal law requires collection agents to treat you fairly. They're not allowed to call you before eight in the morning or after nine at night. If they know your employer discourages personal calls, they are not supposed to call you at work.

One call a day is the accepted industry standard. After a collection company calls you, it has five days to mail you a notice stating who you owe, how much you owe and what to do if you dispute the debt.

Collectors are not allowed to embarrass you publicly or discuss your debt with anybody else. They can call other people only to find out where you are.

Collection agents are not allowed to pretend that they're with the cops or the courts. They can't imply that you've committed a crime or threaten to arrest you. And they can get into serious trouble if they use foul language or threaten violence.

Collection agents are not allowed to collect more than you owe. If you write a post-dated check they can't cash it early.