in 2005 I had a bill sent to a collection agency by my doctor and after much headache, I resolved the issue which was simply an incorrect ID# which caused a billing error. I faxed a copy of my blue cross card to them and they were happy. A whole year later I got a call from the same collection agency. Upon talking with blue cross, they had no record of the bill. It’s was now a over a year so I had to open up an appeal to get it paid, which I did and they were paid promptly. I faxed a copy of the statement of payment to them and the collection agency. A year later in 2007 I got a call from said collection agency! I had to fax everything to them again~ they apologized and everything was fine. Today, January 2010 almost 3 years later I received a call from said collection agency for the same bill! Of course they said "I had to prove to them I paid". But what really irritated me is that they said they had not spoke to the "creditor" all this time and did not verify if it was paid or not. Thank god I save everything.

But what of the law? Isn’t this bordering harassment? Is there anything I can do to stop them from calling me 5 years from now? Each time I am told the bill is settled and then it blind sides me again.

1. They can call. You do not have to answer the phone. You do not have to send what they request. You do not have to do anything for them except show up in court, if they decide to take it that far. Which is unlikely. Even if they do, if the statute of limitations is less than five years, you just have to tell the judge that it has expired, and do not have to prove that the debt was paid, or anything else.

2. Until you explicitly tell them not to call, they can call. If you send them a letter telling them not to contact you by telephone and instead to contact you only by mail (which should be the very first thing you do whenever a collection agency calls, before you even tell them your name), they must comply with that request. (Send it certified mail, return receipt requested, because it sounds like you will need "proof" you sent it.) Until either (a) you tell them not to call, or (b) they call twice on the same day, it is not bordering harassment.

I have a creditor that calls me about every 30-45 minutes in the day. I feel this is obsessive and I have already talked to the actual party I owe money to and have worked something out with them because these creditors seem very unreliable and untrustworthy. Is there anything I can do since they are calling my cell phone?

biwagirl2 is mostly correct, but I would love so see some of her sources that deal with the specifics. If it’s case law can you pass on the info?

The FDCA does not specify how often a creditor can call. However, most of the major agencies belong to trade groups that give guidelines about how they should behave, and in most cases they do specify the number of calls.

The FDCA states that "Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number."……but doesn’t specify details. If it’s left up to the judge to decide, they will certainly be nailed for calling every 45 minutes.

As for calling a cell phone, it’s also a gray area. For this we refer to this portion of the law:

Creditors may not call….

"at any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer."

However, you would have to demonstrate to the court that the creditor knew the phone number was a cell phone. The only 100% sure way is to send a certified letter to the creditor informing him not to call your cell phone.

As anyone who has seriously examined Chapter 7 bankruptcy protection knows all too well, filing bankruptcy may be the absolute worst thing that borrowers can do to improve their financial position. For desperate folk suddenly realizing that there is little they can do on their own to achieve debt relief, bankruptcy might seem like an attractive possibility. After all, from our earliest memories, Americans are taught to respect bankruptcy as the (for whatever reason) dignified end to debt crises. Whether playing board games or watching cartoons, we’re taught that bankruptcy is just what is supposed to happen once any borrower has debts that they can no longer responsibly manage. In our culture, bankruptcy is simply expected to be the final debt solutions to personal economic strife. Even as the nature of consumer debt changes from hospital bills and department store accounts to the burdens of credit cards too easily granted and too quickly filled to their limits, bankruptcy maintains a mythic allure as an all-inclusive cleanser for financial woes. 

Much as the debt protection of bankruptcy may have seemed a godsend for the generations that came before, there are now any number of new bankruptcy alternatives available for those debtors who have faced financial misfortune. More to the point, once a consumer takes time to fully analyze the Chapter 7 bankruptcy program, they may very reasonably wonder whether or not bankruptcy would be the correct choice for any debtor regardless of their own situation. Successfully filed and discharged, bankruptcy protection could indeed offer consumers new beginnings. In the best scenario, the fortunate borrowers could even start their financial lives over from ground zero, but that is only after they have suffered a harrowing ordeal that risks the utter ruination of their credit rating as well as the potential loss and seizure of any even vaguely valuable possessions. 

The relief that people may feel when entering the bankruptcy program is understandable, really. Given that most borrowers seriously considering bankruptcy have already had to deal with (the sometimes hourly) harassment from bill collection agencies and watch their mailbox fill to bursting with past due notices from credit card companies, it is not that surprising that the average consumer – struggling to pay their credit cards and other debts – would jump at the chance to have a specialist take over their affairs. The very idea that debtors would no longer be held responsible for their actions alone comes as a sort of salvation that impels otherwise cautious heads of household to essentially hand over the reins of their economic futures. Certainly, the bankruptcy lawyers charging more and more outrageous fees are not going to argue against what may as well be thought of as their own product. Despite the amount of time the lawyers may spend with their clients (they are paid by the hour, as you probably know), very few attorneys will spend even five minutes counseling borrowers about exactly what they are getting themselves into. Eliminating unsecured debts (credit cards, primarily, as these things tend to go) should be a priority, but wise debtors must recognize the limitations of bankruptcy protection under the current statutes. Above all else, they should know not to trust their attorneys for advice beyond their specialty. 

From the moment that potential clients enter their lawyers’ offices for an initial consultation, the attorneys tend to assume that the bankruptcy has already started and begin to ask questions about the best way to proceed. Of all the ways to decide whether bankruptcy is the best solution to credit card debt elimination for a client and his or her family, expecting fair and balanced advice from the lawyer potentially paid to handle their case presents problems that should be obvious to all borrowers. It is not always the lawyers’ fault, exactly. Becoming a successful attorney requires the sort of mindset that tends to ignore or flatly disregard competing notions of financial stability and methods of resolution. If anything, this mentality should be what any borrower would want to look for in their attorney, and such presumptions force the real problem. At this late stage of the game, debtors should be more interested in finding a debt management specialist who can knowledgeably tackle all of their specific issues and questions – even the questions that borrowers aren’t even aware that they have. 

Thinking, as they tend to do, that they will be able to buck the odds and turn the system to their advantage, there are a number of elements to the modern bankruptcy that most attorneys are loathe to mention despite the overwhelming importance of those elements to the people planning to file. Chapter 7 bankruptcy protection, the debt elimination bankruptcy program that was once upon a time the only sort of bankruptcy, is now far more difficult to successfully enter. Congressional legislation from just a few years ago has irrevocably changed the rules concerning the Chapter 7 process. Nowadays, borrowers attempting to file for Chapter 7 must be able to prove that they earned less than the median income for their state of residence. For debtors living in lower income regions of typically high income states like New York or California or Massachusetts, this can be absolutely ruinous. Even worse, the filers’ incomes are determined by a relatively random period set months before they actually file. If someone attempting to declare bankruptcy depends upon a seasonal rise in business or a commission that effectively makes up a dramatic percentage of their annual income, the earnings extrapolated from that small sample size could be thoroughly skewed. 

More importantly, debtors who are denied access to the Chapter 7 program by court appointed trustees should understand that they do not simply get to start over and try another avenue toward debt reduction. Instead, these borrowers are automatically switched over to the Chapter 13 debt restructuring program. With Chapter 13, debts are not eliminated. In fact, under this type of bankruptcy, borrowers are effectively forced to repay their lenders as quickly as possibly under court assessed budgets compiled using Internal Revenue Service data. As with Chapter 7 bankruptcies, the incomes that the government calculates could still be completely inaccurate depending upon the earning period from which they determine their figures and also utterly unfair since the courts do not bother to look at the specific region in which the filer lives. Within Chapter 13 bankruptcies, though, things get even more convoluted because the budget under which the borrowers are expected to survive (giving all additional funds to the accumulated creditors, naturally) also depends upon their state of residence. Meaning, people filing for bankruptcy in Seattle will be expected to have no more than the average costs of living for the entire state of Washington. In this way, the newly bankrupt have been forced to take out second jobs, pull their kids out of private schools, or even, in some extreme circumstances, sell their homes in order to relocate. 

Of course, for many of those borrowers whose financial situations are so grave that they must first contemplate the bankruptcy so-called solution, they do not need further impetus to take on a second or even a third job. This is yet another of the, for lack of a better word, hidden expenses of bankruptcy. Most borrowers have already girded themselves for the costs of bankruptcy attorneys – though they are always, ALWAYS greater than even the most well prepared debtor could dream – and the miscellaneous costs that arrive whenever the government is involved. Even the actual filing of bankruptcy shall require hundreds of dollars up front (for some reason, neither the lawyers nor the courts will allow those seeking to file bankruptcy any amount of credit). There is also the cost of essentially purposeless debt management courses from government certified instructors that filers must successfully pass before first submitting paperwork and before their ultimate discharge could be processed. As you should now expect, these courses (far from cheap – since only a few ‘schools’ per region pass government certification, they have no reason to follow the market pricing) shall be paid solely at the borrower’s expense. 

Perhaps the greatest true cost, though, is the sheer amount of time spent compiling all necessary documents and verifying that all information given to your attorney and the bankruptcy trustee is accurate beyond a shadow of a doubt. Remember, no matter what your actual intentions may have been, inexact data given to the federal authorities could be judged as fraud in criminal proceedings. Forget one teensy portion in a step-brother’s mining operation? What about that great-uncle’s time share absently gifted? And are you really sure you recorded every single bit of your income from six months ago? Every single bit? So sure that you would risk imprisonment should things turn out to be accidentally falsified? This is what bankruptcy protection actually entails. Much as there may seem a temporary relief from stress once you have passed on your credit card debts to another source, there arises an entirely different crest of tension. The bills may have stopped, true, but what exactly was on those reports? What was and was not spelled out? Beware of any supposed solutions that involve budgetary conditions prescribed by the Internal Revenue Service and guarded by the ever more ambitious watchmen of the federal justice department. 

At the end of the day, for even the luckiest of those consumers filing for bankruptcy protection, Chapter 7 still cannot guarantee the elimination of all of their personal debt loads. Secured loans, those debts maintaining attachments to actual property like cars or homes, tend to demand said collateral before giving an inch toward debt resolution. Child support and alimony – as well, if needs be said, tax liens and those financial obligations resulting from criminal trials – are obviously not to be touched, and, after a late 80s legislative fiat, student loans are also out of bounds. The medical community and various health insurance political action committees have been trying for some time to make sure that hospital bills will also be rendered immune to Chapter 7 bankruptcy protection, and, make no mistake, the credit card companies are dancing as fast as they can to ensure every single credit account receives the same treatment. 

This is not to say that there is no point to bankruptcy as we currently understand the process. As long as there is a chance to eliminate credit card debt, certain types of borrowers profoundly unlucky in their own personal finances should do whatever is necessary to attempt to clear the registers. However, for most ordinary consumers, just cutting back on purchases and maintaining a reasonable household budget shall eventually have the same effect. Whenever there is even the slightest chance of fixing personal finances without resorting to professional help, the debtor must take every last attempt to manage their own obligations however seemingly severe the deprivations. The American economy is in trouble. We are entering a recession. Still, that does not mean every worker need presume the worst nor that they should give up – which, for all intensive purposes, bankruptcy suggests. Cutting costs will never be pleasurable, debtors will have to adjust to a different lifestyle, but, once consumers look closely at the bankruptcy option, they will almost always choose any other alternative for eliminating their credit card debts. 

Even beyond careful budgeting practices, there are other maneuvers that consumers may attempt. Many credit card companies or similar lenders will offer forbearance or a stay of payment due dates if borrowers can show some cause for the delay however vague or gliding upon the rim of truth. Sickness, unemployment, familial tragedies – any decent excuse when articulately and passionately explained to an understanding representative of a lending institution may well prove the difference between bankruptcy and a survivable program of debt repayment. After all, as long as people continue to go bankrupt (and, no matter how much the enlightened borrower shall try to avoid bankruptcy, there will exist a segment of America determined to declare bankruptcy as some fated penance), creditors shall worry. Lenders don’t want to force anyone into Chapter 7 protection. Consumer credit card debt elimination as vouchsafed by the government, however rare and dangerous, would be the absolute worst possible consequence for the banks involved. 

We do understand that severe financial mishaps may necessitate governmental intervention. There is a reason that the United States originally offered such protection. However, most of the personal bankruptcies filed in America could be dealt with by other means far less damaging to the debtors’ credit and pocketbooks. Even beyond simply following disciplined household budgets and talking over the potential for re-structuring debt payments with creditor representatives, there are entire businesses that have grown up to assist consumers in their struggles with personal debt loads. Most everyone is at least familiar with the Consumer Credit Counseling program thanks to the industry’s non-stop marketing campaign, but, with increasing analysis from watchdog groups, it turns out that many of these companies are funded by the credit card conglomerates independently from whatever fees they charge their supposed clients. More to the point, the repercussions upon credit and the cost out of pocket are not much different than what borrowers could expect from bankruptcy proceedings. 

Debt settlement companies, on the other hand, though they are far less publicized (and, a new industry, exponentially less well known than bankruptcy protection by most Americans) negotiate with the credit card companies on behalf of their clients in order to reduce the total balances of the assorted debts that have accrued. Considering that – so long as bankruptcy remains a danger to their supposed holdings – lenders are more than willing to agree to something around fifty percent of the debtor’s actual obligation in exchange for virtually guaranteed payments from the debt settlement company, there is an obvious benefit for every borrower that would qualify for the settlement program. It’s not for every debtor, of course. A handful of lenders still stubbornly refuse to bargain regardless of the cause or value of the specific account. However, every debtor should at least inform themselves about the debt settlement option and take advantage of free initial consultations whenever they are available. 

As with any financial predicament, there is no way for a short article such as this to fully explain all the myriad possibilities and potentials a debtor may come across when attempting to eliminate his or her debts. Every debt scenario is different, after all, and there is no way for the borrower to come to a full understanding of what lies ahead without personal investigation. Credit card debts and unsecured floating obligations may cripple budgets temporarily, but, leaving aside the stresses unfulfilled payments may engender among heads of household, there are generally several different alternatives beyond Chapter 7 bankruptcy with which debtors may avail themselves. Look around. Cast your net around the varied solutions and see how they would best fit your particular circumstance. For an unfortunate few, bankruptcy may indeed be the only decision that makes sense, but, arduous as that choice may be, there’s a certainty that knowledge brings. Fiduciary protection (for, once again, unsecured debts; largely credit card accounts) from the federal government will always be there for the most desperate sort of borrower, the books will be balanced, but, with any luck, some chapters may not be closed.

John Chase
http://www.articlesbase.com/personal-finance-articles/alternatives-to-bankruptcy-723421.html

Q. Will I be totally debt free when I’m done?
Our program is focused on dealing with only unsecured debts (credit cards, medical bills, unsecured personal loans). We cannot help you with debt that is secured by collateral (such as mortgages or auto loans). After completing the program, however, the money that you are no longer paying towards your unsecured creditors can now be used to pay down secured debts, as well as to save for your financial future.

Q. Will I have to take out another loan to cover my current debts?
No. Our debt reduction program is not a new loan. Some of our clients will use a “consolidation” loan in conjunction with FDR’s debt negotiation program, but most fund their settlements with a monthly payment into their settlement savings account over the program period. That being said, we do have a relationship with a lending company, and some clients who demonstrate a consistent pattern of saving their monthly draft amount on time may be eligible for a loan to pay off one or more of their settlements. Of course, this is never something that is required of any FDR client.

Q. How is the service fee paid, are they paid upfront?
Our fees are not charged upfront – instead they are withdrawn from your new settlement account each month. Typically our fees are spread out over a period spanning 18-19 months. The fee is broken into a Retainer fee, that is paid out over the first 3 or 4 months, and then a Service fee that is paid out over the following 15 months. All fees are included in the one monthly savings amount that our account executives will quote to you.

Q. Should I put all of my credit cards in the program?
If you have one card with a low balance that you can quickly pay down to zero, then you may hold onto it for emergencies. However the program will generally not work unless you enroll all of your high balance (greater than $500) credit card accounts. As you can imagine, it makes it difficult for us to negotiate with your creditors if they can see that you are negotiating on some accounts but not others.

Q. Who controls the bank account where I am saving funds for creditors?
You do. The bank account is set up in your name and the money in the account is your money. The reason why we recommend keeping it in a new account that is separate from your existing bank accounts, is that in our experience, this separation dramatically increases (by a factor of 2-3 times!) the probability that you will succeed in FDR’s program. FDR’s fees are deducted from this account each month, according to the Agreement that you sign with us. But the accumulated savings in the account are owned by you.

Q. How does this affect my credit?
If you do not make required minimum payments to your creditor you may be breaking the terms of your agreement with them and your actions will probably be reported to consumer reporting agencies as a late, delinquent, charged-off or past due balance. This is true whether or not you have enrolled in a Debt Settlement Plan. Depending upon the condition of your credit report at the time of enrollment, a Debt Settlement Plan may have an adverse effect on your credit report and credit score. Our goal is to get you out of debt for the lowest cost, in the shortest period of time without declaring bankruptcy. Once you are out of debt, we will be able to refer you to a reputable credit repair organization if you desire. Please note, Freedom Debt Relief is not a credit repair organization.

Q. Will I receive phone calls from collectors?
There are federal and state laws designed to protect you from creditor harassment. However, the fact is that most of our clients experience some collection calls. FDR’s goal is to get your creditors to call us and not you when they want to ask for money, and we will work with you minimize any calls that get through to you. In addition, we will work with you to make sure violators of collection laws, including the Fair Debt Collection Practices Act (FDCPA) are appropriately handled.

Q. Will I owe taxes on my forgiven debt?
The IRS considers a forgiven debt as taxable income, so at the end of the year, they will expect taxes to be paid on the settlement. The IRS, however, has a form (Form 982) available for certain hardship situations that may exempt you from this tax. Please contact a tax advisor to discuss this issue further.

Q. Do interest and late fees accrue on my accounts?
If you let your accounts go delinquent, your creditors will continue to add interest and late fees onto your balances. Typically, your balance will increase until a settlement is reached. Keep in mind that the interest is going to accrue regardless of whether you make minimum payments or not. FDR’s goal is to negotiate substantial reductions to the balances on your accounts, even after the interest and late fees have accrued.

Q. Could I negotiate on my own?
Yes you can. You can also do your own taxes and repair your own car, but most people choose to seek help. Most people prefer to leave these tasks to experienced people who earn their livelihood as specialists in those lines of work. Our team of debt negotiation specialists has only one job - negotiating reductions on our clients’ unsecured debts, each and every day of the week. Our knowledge and experience puts us in the best position to stand up to your creditors and fight for the best settlement possible. Together, FDR’s team of negotiation specialists are resolving approximately $10,000,000 of debt each month (and growing!).

Q. Do you begin negotiating with my creditors right away?
Except when dealing with certain difficult creditors, we generally contact your creditors right away (typically within approximately 1-2 weeks of your joining our program) to let them know that we have Limited Power of Attorney and to request that future collection calls come to us and not you. The actual negotiation activity is typically very limited until you have saved up enough in your settlement account to make reasonable offers to your creditors. Most (but not all) creditors do not want to spend time negotiating an account unless they know there are funds available. The first settlement typically happens in month 6 to 9 of a client’s program (this varies greatly and depends on your monthly savings amount and the number of creditors you have enrolled in the program as well as the balance of each individual account). In some instances it may take more than 9 months before the first settlement is reached.

Q. Will my debts be sent to a law firm? Will this result in a lawsuit?
Creditors do have the right to send debts to third party collection agencies and/or law firms in order to collect a debt. If this happens, we will continue to negotiate on your account and will treat the debt as a priority creditor (meaning we will try to resolve it first, before moving onto your other accounts). Based on our actual experience, it is a small percentage of cases on which lawsuits are actually filed. When this does happen, usually the purpose of the lawsuit is to force a settlement. We will continue to negotiate to settle the debt, although the settlement percentages are often higher than typical “non-legal” settlements. If a lawsuit is filed before you have saved up enough funds to negotiate a settlement, we will seek to resolve the account by putting it on a long term payment plan for 100% of the balance. Please note, we are not a law firm and cannot provide legal advice or legal representation.

Q. Do you guarantee that you settle all of my debts for a certain percentage?
No. Every case is a negotiation, and there is no guarantee how the negotiations will wind up. Furthermore, the success of our negotiations is highly dependent on your ability to save a specified amount each and every month you are in the program.

Q. Will entering your program repair my credit?
No. We are not a credit repair company, and our goal is not to repair your credit. Our goal is to negotiate settlements at less than face value on your unsecured debts.

Source: http://www.freedomdebtrelief.com/debtreduction.php

Mark Bowland
http://www.articlesbase.com/debt-consolidation-articles/debt-reduction-faqs-freedom-debt-relief-701228.html

I took out a payday loan for a friend who didn’t pay it back, now the creditor is calling me demanding I call them back to make payment or they will contact my boss to my information from them. I have already sent them a certified letter asking them to stop the calls that when I have the money I will contact them, but then he called me saying that he’s was giving me until a certain day and time to call him back or he was going to contact my boss. Can he really do that? Isn’t this considerd harassment?

The FDCPA applies to third party collection agencies, not the original creditor. Sending a cease and desist letter to the original creditor is useless.

Payday loan companies do not play fair. They give a whole new meaning to "aggressive". They will undoubtedly call your boss about your debt, even if it is illegal. Yes, they will definitely "harrass" you. Figure out some way to pay them off. Then sue your friend in small claims for repayment.

It is never a good idea to co-sign or loan your credit to someone. But getting a payday loan for a friend is one of the absolutely stupidest things I have ever heard. People with really bad credit can qualify for payday loans. Your friend’s credit was soooo bad he couldn’t even get a payday loan on his own? And you thought he would pay it off cause it’s in your name??

I have a friend who’s in debt, substantially, he can pay it off, but its gonna take 2 more years than expected, his creditor is not too happy and hired a debt collector. They keep sending him mails (with red fonts, bold fonts, capital letter and aggressive tones), regular phone calls (almost daily), a different person every time, with very disturbing tone and language, but at the same time they try to behave "professional" executive like. They even visited his house once, just stood there outside his porch in black suits!

I used to think this kind of stuff happens only in movies, but apparently its real, i heard a recording of a phone call he got and i tell you its very disturbing.

My friend is being affected psychologically and he is very stressed out, he has a kid an a wife to take care of.

He called up the police, they said there is nothing they can do as long as they didnt’ actually physically assault him it cannot be considered criminal.

What is the law for this, in Canada / US ? is it illegal?

The bottom line is there are protection laws that prohibit and limit what and how debt collectors may try and fulfill or contact your friend for payment. For instance, they are usually not allowed to call prior to 8am or after 10pm I believe. Also, here’s something I pulled up re: things your friend can try:

"The Cease Letter. The simplest strategy to stop collection harassment is to write the collector a cease letter. Consumer rights vary depending on whether the collector is a creditor or a collection agency. Federal law requires collection agencies to stop their collection efforts (sometimes referred to as dunning) after they receive a written request to stop. The federal law does not apply to creditors collecting their own debts, but even these creditors will often honor such requests. It is very important for consumers to keep a copy of the written request and to send it by certified mail (return receipt requested). This gives proof that the collector received the letter. Here is an example of such a letter:

Sample "Cease" Letter

Dear Sir or Madam:

I am writing to request that you stop contacting me about an account number _______ with [name of creditor] as required by the Fair Debt Collection Practices Act 15 U.S.C. section 1692c(c). (Note: Delete reference to the Act where the letter is to a creditor instead of to a collection agency. Some, but not all, state laws prohibit further contact by creditors).

[Describe any harassing contact by the collection agency. If appropriate, provide information about why you cannot pay the bill or do not owe the money].

This letter is not meant in any way to be an acknowledgment that I owe this money. I will take care of this matter when I can. Your cooperation will be appreciated.

Very truly yours,

Even though it is against the federal law, not all debt collectors will stop contacting consumers after they receive a letter. Consumers may have to send another letter and once again keep a copy. Advocates should advise clients to keep a careful record of any letters and phone calls received after sending the letter. This record may help if the consumer later decides to sue the debt collector. The Lawyer’s Letter. If a cease letter does not stop collection calls, a letter from a lawyer usually will. In addition, the lawyer may be able to raise legal claims for violations of the federal law that prohibits debt collection harassment.

Federal law requires collection agencies to stop contacting a consumer known to be represented by a lawyer, as long as the lawyer responds to the collection agency’s inquiries. Even though this requirement does not apply to creditors collecting their own debts, these creditors also will usually honor requests from a lawyer. A lawyer working for a creditor or collection agency also is generally bound by legal ethics not to contact debtors represented by a lawyer."

Sorry this is long but I hope it helps.

A few years ago I went through a bad time, job change, etc… After I got back on my feet, I settled with all my creditors to stop all the harassing phone calls, etc.. One of the creditors sent me a statement to settle my debt and I paid it. I have the paper and canceled check originals. 6 months later I get a letter from the creditor asking for a larger sum or else. They hire a collection lawyer firm to come after me and when I present the proof, the agengy apologises and kicks it back to the creditor. They state that the settlement amount the creditor sent me was TYPO, but since it was their mistake, they must live with it.A few months later, they actually sell off the debt to another company who again I have to fax the proof to and the original creditor is forced to buy back the debt. Several months later, the original creditor sends me a letter saying they have the debt and are going to start charging interest on the debt? They are refusing to give up or take this off my credit as settled. I live check to check and do not have money for a lawyer. I am still paying on a loan I took out to settle the debt from my retirement plan. What can I do to stop this as it is nothing more than pure harassment from a creditor who refuses to accept their mistake.

Don’t answer your phone

Educate yourself on your rights and the laws that protect you from unfair collection procedures. Visit consumer advocacy and bankruptcy law websites for more information on your rights and the laws that limit creditors and collection agencies from harassing you. If you know what they can and cannot do, it’s much easier to protect yourself and fight back if they’ve crossed the line.

Sue them for breaking any laws under The Fair Debt Collection Act in a state or federal court, report them to the Federal Trade Commission (FTC), or contact your State Attorney General’s office to file a complaint if the creditor or collection company has crossed the line, which, unfortunately, they often do.

Use the power of the pen. Write a letter to each debt collection agency or creditor demanding that they stop trying to contact you. Under the Fair Debt Collection Act, once the creditor receives this letter they are required by Federal law to stop contacting you except to notify you that are stopping communication and to notify you of any specific action on their part.

I need legal aid or a phone number to call

I used to work in collections.

Write a "Do Not Call" letter and send it both to the creditor and their harrassing representative. This letter should include your name, account information, and instructions about when, where, and how they may contact you. Make sure to send this letter via certified mail so you will have evidence the letter was received, should you need proof in the future.

A video on freshman credit debts!

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It is unlawful for a debt collector to harass you.

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Technorati Tags: credit cards, Credit Counseling, creditor harassment, creditors, Debt Counseling, debt settlement, Debt Validation, interest rate reduction