Just because you owe money doesn't mean a debt collector can walk all over you. You have rights regarding what they can do and say. Find out how to dispute a debt and get them to stop calling you.
Money Girl
170 MG Dealing With Debt Collectors
[MUSIC PLAYING] AT&T customers switching to T-Mobile has never been easier. We'll pay off your existing phone and give you a new one free. All on America's largest 5G network. Visit T-Mobile.com/carrierfreedom to switch today. Pay off up to $650 via Virtual Creepy Mastercard in 15 days, free phone up to $830 via $24 monthly bill credits plus tax, qualifying, port, and trade and service on Go 5G next to credit required. Contact us before canceling entire account to continue credit to credit, stop, and bounce and require a finance agreement as do. We could try to explain what it's like to get your work done on a John Deere mower, compact tractor, or Gator SUV. But to really understand the feeling, you just have to get in the seat. Learn more at jondere.com/getintheseat or visit a dealer near you. [MUSIC PLAYING] Hi, everyone. And welcome back to "Money Girls Quick and Dirty Tips" for "Rich Your Life." I'm Laura Adams. If you're a regular listener, you know that April is Financial Literacy Month. To celebrate, I'm answering your most embarrassing questions. Here's one from Scott in Phoenix, Arizona. I'm embarrassed to say that I have past two bills. I'm employed now, but was out of work last year and got behind. I'm trying to get caught up, but debt collectors are driving me crazy. I've told them that I'm doing my best to pay as much as I can each month, but they keep calling. Thanks for any advice you can give me. Scott, I appreciate your email. And I'm sorry about the financial difficulties you're having right now. I'll give you some tips for keeping the collectors at bay in this show. Getting behind on bills and owing past due money is a terrible position to be in. But the good news is that even if you owe money to a creditor, you still have rights. In this show, I'll discuss the Fair Debt Collection Practice Act. That's the law that debt collectors have to follow. It doesn't matter if the collector works for a collection agency, a corporate collections department, a third party, or is an attorney. The Fair Debt Collection Practice Act covers personal debts, such as medical bills, car loans, mortgages, and money owed on credit cards. But it doesn't cover business debts. When a debt collector starts the collections process, they need to know where you live, your phone number, and where you work, for instance. They might call a relative or a business like a utility company to get the scoop on you. An important rule that's often violated is that debt collectors may not discuss your debt with anyone other than you, your spouse, or your attorney. So if they call your boss at work and tell her that you don't pay your bills, for instance, they've crossed the line. I'll tell you what recourse you have against a collector who violates the law in a moment. You may be surprised to know that a debt collector can't just ring you up any time they feel like it. They can't call you before 8 a.m. or after 9 p.m. in your time zone. They can't call you at work if you notify them that you're not allowed to take calls there. And if you have an attorney who's representing you about your debt, a collector must speak to them, not to you. After a debt collector makes initial contact with you, they have to send you a written validation notice about your debt within five days. The notice should include the name of the creditor and the amount they believe you owe. If you don't agree that you owe some or all of the debt, take these four steps to dispute it. Number one, tell the collector over the phone that you believe there's an error and ask them to stop contacting you. Number two, send a letter to the collector within 30 days after you receive their validation notice, stating that you believe they're mistaken than to stop contacting you. You'll find a link to some sample collection letters on the blog at moneygirl.quickanddirtytips.com. ♪ You spend it over here ♪ - Now at T-Mobile, get four 5G phones on us and four lines for $25 a line per month when you switch with eligible traders, all on America's largest 5G network. - Minimum of four lines for $25 per line per month without a paid discount using debit or bank account, $5 more per line without auto pay plus taxes and fees and $10 device connection charge. Phone to be at 24 monthly bill credits for well qualified customers. Contact us before canceling entire account to continue bill credits or credit stop and balance on a required finance agreement too. Bill credits end if you pay off devices early. CTmobile.com. H5N1 bird flu is spreading in poultry and cows. It's rare in people, but bird flu can make you sick. If you work with poultry, dairy cows, wild animals, or with raw unpasteurized milk, wear protective gear like coveralls, NIOSH approved respirators and eye protection and wash your hands often. If you start feeling sick, seek medical care and tell them you work with animals. Learn how to reduce your risk at cdc.gov/birdflu, a message from CDC. Cheers to a great day and this ice cold corona. You know what would make this a even better? My grandma's got a mess out of that. Throw in some music. We can watch the game or we could keep it simple. Corona, la vida, masvina. Get your corona at ordercorona.com. Relax responsibly, corona, extra beer, imported by Coronavirus, Chicago, Illinois. Number three, make a copy of the letter for your files. And four, send the original letter by certified mail and pay for a return receipt so you have proof that it was received. After they receive your dispute letter, a collector can only contact you to confirm that they won't be contacting you anymore or to inform you about a legal action that they're going to take, like filing a lien or a lawsuit. However, if the debt collector sends you back a written verification of the debt, such as a copy of a credit card bill that you haven't paid or a promissory note that you signed, then the process starts over and they can contact you again. Debt collectors are prohibited from harassing you or lying to you. The following are some examples of what's not allowed, calling you repeatedly, threatening to harm you or using profane language, publishing your name as someone who hasn't paid a debt, except to a credit reporting agency, misrepresenting their identity, company name, or the amount you owe, telling you that legal action will be taken against you if they don't intend to do it or if doing so would be illegal, sending you anything that looks like an official government document, if it isn't, depositing a post data check early, and mailing you a collection notice by postcard. You can report a debt collector who violates the Fair Debt Collection Practice Act to your state attorney general's office and to the Federal Trade Commission. You can also sue a debt collector within one year of a violation. If you win, they're liable for damages that you can prove, such as lost wages. You can also be reimbursed for your attorney's fees and court costs. However, winning a case against a collector who violated the law doesn't erase your debt if you still owe it. If you refuse to pay a debt, a creditor, or debt collector can sue you to collect their money. Here's an important quick and dirty tip. If you are sued, be sure to respond to the suit personally or through an attorney by the deadline specified in the papers. That will preserve your rights in the case. If they win, a judgment is recorded at the court, which allows the creditor to take their collection efforts to the next level. They could garnish your wages at work or direct your bank to withdraw funds from your account to pay the debt. Some additional tips for dealing with a debt collector are to keep records of all your phone conversations with them. That includes the date, time, their name, their company name, and what was discussed. Save voicemail messages and all written correspondence from a collector. If you negotiate payment terms or to reduce the amount of your debt, be sure to get the agreement in writing before you send the collector any money. It's also a good idea to pay with a cashier's check instead of a personal check so you don't reveal your bank information. Oh, and one more thing, be wary of debt-related scams. While there are reputable nonprofit credit counseling agencies that can help you create a budget and manage your debt, proceed with caution if you get an unsolicited offer from a company that promises to settle your debts for less than you owe. I certainly recommend that you pay all your bills on time, but if you can't, try to get help before the collectors come calling by communicating directly and honestly with your creditors. They're more likely to give you favorable treatment when you take the initiative to let them know you're having a temporary financial setback, but that you still plan to pay your debt. I'm glad you're listening. Cha-ching. That's all for now. Good to see you money, girl. You're gone to hurt richer life. H5N1 bird flu is spreading in poultry and cows. It's rare in people, but bird flu can make you sick. If you work with poultry, dairy cows, wild animals, or withdraw unpasteurized milk, wear protective gear like coveralls, NIOSH approved respirators and eye protection, and wash your hands often. If you start feeling sick, seek medical care and tell them you work with animals. Learn how to reduce your risk at cdc.gov/birdflu, a message from CDC. Curious how equity compensation can help build employee financial confidence and move your business forward? Tune in to the latest episode of Morgan Stanley at Work's Invested at Work podcast, where we explore the power of financial benefits and how they can help your employees in the workplace and beyond. Listen now by visiting morganstandley.com/investedatwork or stream on Apple or Spotify, because we believe that when employees thrive, your company thrives too. Again, visit morganstandley.com/investedatwork, at work to listen today.