How to Protect Yourself From Criminal Debt Collectors

Here are the best ways to combat illegal debt-collection tactics

May 9, 2012 RSS Feed Print

[See 5 Dangerous Debt Payoff Strategies]

Get proof. Although collectors may claim you owe this debt, ask the collection agency to send you proof before you continue the conversation. "They are required to do this, upon your request," Bartmann says. "If you don't request it, they're not required to send it."

Issue complaints. If the debt collector makes any threats or acts aggressively, immediately contact the Better Business Bureau (not the bureau where you live, but where the debt collection company is located). You should also call the attorney general in that particular state. It will have a consumer protection division, which is designed to handle such complaints. Finally, complain to the Consumer Financial Protection Bureau. "If you contact those three, one of them will do something about it," Bartmann says.

Lawyer up. If none of these courses of action are effective and you continue to be harassed by a debt collector, hire a private attorney. "You can get them relatively inexpensively," Bartmann says. Adams points out an added benefit of enlisting the help of a lawyer: "If you inform a debt collector that you have an attorney, the debt collector is prohibited from contacting you directly."

Tags:: crime,; debt,; safety,; money

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I'd like to point out that some of what's stated above is not accurate, and gives readers the impression that ALL debt collectors are criminal, or operate in the same way. For instance,
"...the method of operation for debt collectors is essentially the same: The collector pays a company you owe money to—typically a bank—to then have the ability to collect on your debt."
This is not true. Typically, the method of operation for a debt collector is that they are selected by the bank or other creditor after a rigorous vetting process (some creditors are better than others at this, and should be held accountable for who they hire; just like one can end up hiring an unscrupulous plummer -- they come in all industries), and they are paid on contingency. The "pennies on the dollar" concept you hear so often does exist, but it is NOT the typical method of operation. And yes, a collector could operate criminally in order to earn their fee, but they wouldn't get the work the next time.
Most collectors are interested in running legitimate businesses, they send their kids to school, they volunteer in the community, etc. just like everyone else. (http://www.insidearm.com/category/doing-it-right/)
The writer (and Bill Bartmann) also seem to suggest that the best course of action in all cases is to write a letter telling the company to stop contacting you. "...the company is obligated by law to stop unless it sues you." Right. so... forcing a company to sue you is clearly way better than trying to discuss by phone.
If you are dealing with a criminal who is verbally assaulting you, okay. But it's irresponsible to suggest that this is the best way to deal with all debt collection calls. Your next article will blame debt collectors for clogging the courts.

Stephanie Eidelman of MD 12:01PM May 11, 2012

This bill was withdrawn from consideration when it went before a committe to hear testimony regarding Mr. Bartmann and his previous activities in Oklahoma. I would surmise someone did'nt want the facts made public. You should check and see who has numerous lawsuits against them for FDCPA violations.The American Collectors Association, Oklahoma Collectors Association and the Debt Buyers Association, all respected trade organizations came out against this onerous bill, a mirror image of federal law now in place.

Ron L. Brown of OK 9:54AM May 11, 2012

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