There is little legal weight to what someone says over the telephone. The caller can say what they like with impunity. And that is why debt collectors use the telephone as their main weapon. When exchanges with consumers are done in writing, debt collectors lose their effectiveness.
The record of written contact with a credit card debt collector is what holds weight in court. That record is a lot stronger when a consumer sends all letters certified return receipt requested.
There is a saying in online consumer forums, 100 percent of debt collectors tell lies 100 percent of the time. Here are some examples of those lies.
1. They scare you by claiming that a lawsuit has been filed against you in your local court and that a complaint is on its way.
2. They advise you to make an affordable token payment because they know that if you do this then you are documenting admission to the debt.
3. They tell you you may be arrested, knowing no one can be arrested for a civil matter.
4. They will tell you may have your wages reduced to pay your debt, and you will get a negative listing on your credit report.
5. They threaten to have your bank account seized.
Each of these lies is punishable with a $1000 fine with the Fair Debt Collection Practices Act.
On the phone, credit card debt collectors attempt to get you to admit to the debt, confirm the debt’s credit card number and share personal information like your Social Security number, your work place phone number, and your bank account information. According to the Credit Card Debt Survival Guide, at this point you should deny and dispute the debt (whether or not it is yours), tell them they are just a voice on the other end of the line. They could be anyone, and you do not share your personal financial information with strangers. Then hang up.
Curiosity should be the only reason for taking one of these calls. If a credit card debt collector calls out of the cold, let them tell you what debt they are calling about, then tell them you have received no written notice from them about the debt and hang up.
Fortunately, the Fair Debt Collection Practices Act allows you to write to the debt collector instructing them to stop all collection calls. Once this has happened, any calls are subject to a $1000 penalty because they then violate the law. You can keep a log of every call and then contact a consumer rights attorney about suing the debt collector, fee paid on the contingency of winning.
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