It I don’t pay a bill, how long before it’s turned over to a collection agency?
Most creditors don’t turn bills over to a collection agency immediately. If you get four months or so behind, you’ll probably hear from a credit collection agency. Plus, a delinquent account will show up on your credit report, which could cause trouble later.
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What should I do it I think a debt collector has violated the law?
If you believe a debt collector who is hounding you has done something illegal, file a complaint with both federal and state regulators and forward copies to the creditor who hired the debt collector to begin with. Contact the Federal Trade commission and the state agency that regulates collection agencies for the state where the agency is located. They may send you a form, which you should fill out carefully. Include dates, times and the names of any witnesses to unlawful conversations, and attach copies of all offending materials you received. Keep the originals for yourself.
You should also write to the original creditor and send a copy of this letter to the collection agency, the Federal Trade Commission and the state agency. The original creditor may be disturbed by the collection agency’s tactics and concerned about its own reputation. It may prefer to have you come back some day as a customer than have you be abused by a collection agency.
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How do I stop debt collectors from calling me?
You can’t stop creditors or collection agencies from suing you, but you can demand that they stop calling you. A collection agency cannot legally contact you at an unusual or inconvenient time or place. The agency cannot call before 8 a.m. and after 9 p.m., nor can it call you at work if It knows that your employer prohibits receiving collection calls on the job. If an agency calls you at work, tell the collector that your boss prohibits such calls.
Most debt collectors stop calling when you tell them to. If they don’t, send a letter to both the collection agency and the original creditor demanding that the phone calls stop. If that doesn’t work, contact your state’s Consumer Affairs Department to file a complaint and ask what to do next, or get a lawyer. In fact, if you hire an attorney, a collector must deal directly with him.
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If I file for bankruptcy, can I get an "automatic stay” to stop bill collectors from bothering me?
Yes. An automatic stay immediately stops virtually all collection efforts against you or your property by creditors or collection agencies. With the stay in place, creditors can’t garnish your wages, repossess your property, foreclose on your home, cut off your utilities or take other drastic action.
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Can a bill collector insist that I wire the money I owe to him through Western Union?
Once a bill collector has got you to agree to pay a debt, he or she may then say that you have to ‘wire’ the cash through
Western Union or some other service. It’s illegal to make such a demand, but it’s also just one of the high-pressure tactics some collectors employ. Here are a few of the “urgency payment” options that bill collectors commonly suggest. (But you are not required to accept these.)
• Sending money by express or overnight mail. This adds at least $10 to your bill. A flrst-class stamp is fine.
• Wiring money through Western Union’s Quick Collect or American Express’ Moneygram.
• Paying your bill by credit card. At best, you’ll trade one debt for another, probably at a higher interest rate. At worst, this tactic gets your farther and farther into debt.
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Can a bill collector sue me without my creditor’s approval?
No. So, if you’re behind on your bills and a bill collector threatens to sue you, don’t panic. A collector can’t sue unless the original creditor has first given its approval. On the other hand, if the original creditor insists that the agency collect 100% of the debt, the agency cannot accept less from you
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Can a credit card company make me sell my home to pay my bill?
Don’t lose sleep worrying that the credit-card company will make you sell your home. It can’t. If you get behind on your credit card payments, the worst that will happen in the short term is that you will lose your credit privileges and get negative marks on your credit report.
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Will I lose the assets in my 401(k) plan if I go bankrupt?
The United States Supreme Court has held that 401(k) plans, and certain other retirement plans and pension plans are generally excluded from the bankruptcy estate. That means that if you go bankrupt, you do not lose your 401(k) plan assets.
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