How To Get Debt Collectors Off Your Back Permanently



Posted: Monday, April 03, 2006

by
M.D. Wholesale

Debt collectors are often liars, cheaters, etc... They can take advantage of every loophole possible and even break the law. They have been featured on almost every news program from CNN to 60 Minutes. There are laws in place to contain their harassment and collection efforts and to make this process more civil, but most figure the risk of getting caught is minimal and that the rewards of endlessly harassing and fleecing victims is far greater. We now have the power to take back our lives, stop them in their tracks and sue them for more than they are trying to collect.

First, lets start with what is actually owed and how most collection agencies work. Usually a unpaid debt is either sold or turned over to a collection agency. 95% or more of these debts are credit cards, store cards, gas cards, etc... These debts are then tiered according to age of debt, amount, credit, job history, etc... Generally most debts are bought for pennies on the dollar. Recent debt may go for $.15 to $.25 on the dollar whereas old debt that has had numerous collection attempts goes for $.05 or less and debt that is beyond the statues of limitations for the state the debtor resides in goes for less than $.01. So, for instance if you owed $10000.00 on a credit card, the debt collection agency paid at most $2500.00, but probably paid less than $1500 for it. Now, what's interesting is that they will call and write you stating that you now owe $14000.00 or so stating that it has accrued interest and various questionable fees. This is all profit if you were dumb enough to pay that. A fair settlement would be $1700.00 or less. So, the point here is that you don't ever owe what they are trying to collect from you - it is always far, far less.

Secondly, lets give you some more ammunition - The 1977 FDCPA (Fair Debt Collection Practices Act) gives you rights the debt collectors won't tell you about. If you don't want to hear from them again, its easy. Just write them a letter stating that you wish they cease all contact with you (make sure you put in the letter that - P.S. This letter is in no way an acknowledgement of the above listed debt(s) - that way they cannot even attempt to try and re-age your debt (add another 7years of collection and reporting to further harass). Send the letter registered return receipt requested mail and keep your proof of receipt. If they contact you after this for any reason other than to tell you they are either dropping the issue or taking it to court (99.99% won't go to court as it costs them more money and their odds of getting anything are almost zero - even with a judgement) then you can sue them for each occurrence for $1,000. People win these suits every day - most settle out of court for a lot more than the original debt (just look this up on the internet under small claims court). You also have the right to question the debt and have the debt collector provide proof. Many debt collection agencies are being sued by many debtors for their failure to provide proof. Just look up Asset Acceptance on the internet - they are one of the biggest abusers of this federal law with thousands of outstanding lawsuits for harassing debt collection practices.

So, now you know how to stop debt collection agencies in their tracks. You know how to get relief - sue them! If enough people sue them things will change. Also use your state and local resources. State Attorney generals go after debt collection agencies that routinely break the law, Consumer protection agencies (the Better Business Bureau, etc...), the Federal Trade Commission goes after the worst abusers, and, of course, your state department of insurance and finance (whom actually licenses these agencies rto operate in your state). You state department of finance and insurance, or similar, has the power to fine, punish and even banish the debt collection agency from your state. Every state requires a debt collection agency to be licensed and put up a large financial bond (around $50,000) to operate in your state. Call these folks if you are having problems with a debt collection agency - they will get immediate results in your favor. Don't threaten the collection agency that you have these rights - use them. Bring the collection agency to its knees if they are violating your rights.

The other problem is are these bills, debts even correct? Many hospitals, doctors, etc... have no ethics and will purposely double or even triple bill patients without insurance because they know they can get away with it. If you have a question about your bill demand a itemized bill and have this professionally examined. This will reveal things like overcharging ($100 tissue boxes, 1000 percent markup on medicines, etc...) We entrust these hospitals and doctors with our lives and then they screw us by double billing or worse. Right now there is no government policing on hospitals. Many times a debt collector will actually make up a debt or illegally pass one on to you from someone else (Asset Acceptance has been sued for this many times). Do not assume that you owe any debt and take them to task. If you do owe it, pay it, but pay the least amount possible, and pay it on your terms. If they break the law - make them pay!

If you have a problem with a bill make it known to your state politicians. If enough people do this things will change. Write to your local newspaper, tell a friend, do a press release. Tell others of their rights. Cigarette boxes come with warnings - shouldn't debt collectors and debt collection agencies with their high propensity to skirt the law also come with mandatory warnings? The more the word gets out, the better the odds something will be done about it.

David Maillie is a chemist with over 12 years experience in biochemical research and clynical analysis. He is an alumni of Cornell University and specializes in biochemical synthesis for public, private, and governmental interests. He holds numerous patents and specializes in products that save the consumer money like headlight cleaner, credit repair and  the proper test drive.  He can be reached at MDWholesale.com.

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Top-level comments on this article: (3 total)
» left by Jan Hayner
 4 years 186 days ago.
40 fans.
Great aticle David, I am sure that you have helped a lot of people stop debt collectors from harassing them! Some of the people that I have come in contact with have been provided your information (as well as your website). Keep it up, it was VERY informative!
» left by Jim Anderson
 2 years 128 days ago.
23 fans. Follow Jim Anderson on twitter!
Good Article!  We need to start holding collectors responsible for their actions.  It certainly makes sense to sue them for violations of collection law, especially since they know most people won't.  If people did, then they would start to be a bit more cautious in their tactics. 
 
I never advise anyone to send a cease and desist letter because it is an invitation to a lawsuit.  It used to be true, about 15 years ago, that they would likely not follow up with a lawsuit.  However, it has become increasingly easy for them to file the complaint and win if you have enough assets to make it worth it, plus it is so profitable as you have pointed out, that they can afford to lose some.  It isn't so much about the profitability of the single lawsuit as it is whether you show enough assets in their asset search on you.  If they can get a judgment (especially if without much of a fight) they can simply sweep bank accounts, attach and/or seize assets, and garnish wages without notice at that point.  It is best to avoid the cease and desist letter and the lawsuit unless you own nothing of value, have no job, and won't have a job for the next 10 years.
» left by Dave Baddeley
from United Kingdom 1 year 225 days ago.
Debt Collectors are a law unto their own! They use techniques to try and scare people in making payments to them and I personally think they should be relgulated. Great article though David, I think its about time these cowboys were exposed!
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