DEBT HELP: Not surprisingly, there is one area of the economy
that is booming despite our recession. Or, should we say, because
of our recession. It’s the business of debt collecting.

While most collection agencies follow the law, the Better
Business Bureau has reported that debt collectors have generated
the most complaints to the bureau – accounting for 1,600 in the
last year alone in the Western New York area.

The Bureau suggests consumers know their rights to be protected
from unscrupulous companies. Such rights are spelled out by federal
law, the Fair Debt Collection Practices Act.

In brief:

– Debt collectors cannot harass or threaten consumers.

– They can not make false statements.

– They cannot invade your privacy or lie.

– You can request contact in writing to control their method of
contact.

Some other tips: Fight invalid claims. If a collector is
demanding payment of a debt you don’t owe, or more than you owe,
you can dispute the debt in writing. The formal terms are “debt
verification” or “debt validation.” Within five days of first
contacting you, the law requires debt collectors to notify you of
your right to validate the debt. You must write to request
verification within 30 days of when you are first informed of the
debt. Sending your request by certified mail is wise.

Keep good records. Keep copies of all collections-related
correspondence. Pay debts only after receiving written notice of
the amount due. Keep records of all payments.

Choose your communications route. Debt collectors may not force
you to respond immediately. If they catch you off-guard, ask them
to call you back in an hour so you can plan. If they call at work
or a relative’s home, tell them you are formally requesting they
not call you at that location and document it.

Report violations. Federal laws prohibit collectors from posing
as attorneys, threatening lawsuits or other legal action that can’t
be taken, saying a consumer committed a crime or will be arrested,
and talking with third parties except to get a consumer’s location.
Violations can be reported to the Federal Trade Commission.