Being in Debt is Not a Crime
Feb. 7, 2011— -- I received another good e-mail this week, about debt collectors. I love writing about debt collectors, because there is a single, 10-minute step you can take to make them stop harassing you. Read on, to find out what it is! And if you have a question for me, please click here to write to me.
QUESTION: I have had a company calling me now for the past few weeks saying they are a mediation company trying to collect for a payday loan. They said the case was being turned over to the d.a.'s office in my city, and considered a class C misdemeanor, and there were fines up to $4000 that included court costs. The more questions I asked, the more evasive the caller became. He told me I had to pay via debit or credit card by this afternoon, but could not provide any documentation as to who he was collecting for and didn't even know the name of the company. They tell you to call back, and when you do, you get an automated voicemail telling you to leave a case number, your name and phone number. However, I have no case number!! Does this sound like a scam? ~D, Texas
ANSWER: Yup. Not only does it sound like a scam, it is a scam. Here's why: being indebted is not a crime in this country, period. And it is illegal for debt collectors to say you've committed a crime in order to wrest your money from you. Here are some more ins and outs of what collectors are and are not allowed to do.
The Fair Debt Collection Practices Act requires debt collectors 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. To repeat, 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.
