What not to say to a debt collector?
IF YOU GET AN UNEXPECTED CALL FROM A DEBT COLLECTOR, HERE ARE SEVERAL THINGS YOU SHOULD NEVER TELL THEM:
Don’t Admit the Debt. Even if you think you recognize the debt, don’t say anything. …
Don’t provide bank account information or other personal information. …
Document any agreements you reach with the debt collector.
What is the 11 word phrase to stop debt collectors?
* Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 43% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”)).
JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required.
Debt resolution program results will vary by individual situation. As such, debt resolution services are not appropriate for everyone. Not all debts are eligible for enrollment. Not all individuals who enroll complete our program for various reasons, including their ability to save sufficient funds. Savings resulting from successful negotiations may result in tax consequences, please consult with a tax professional regarding these consequences. The use of the debt settlement services and the failure to make payments to creditors:
- Will likely adversely affect your creditworthiness (credit rating/credit score) and make it harder to obtain credit;
- May result in your being subject to collections or being sued by creditors or debt collectors;
- May increase the amount of money you owe due to the accrual of fees and interest by creditors or debt collectors.
Failure to pay your monthly bills in a timely manner will result in increased balances and will harm your credit rating. Not all creditors will agree to reduce principal balance, and they may pursue collection, including lawsuits. JGW’s fees are calculated based on a percentage of the debt enrolled in the program. Read and understand the program agreement prior to enrollment.
JG Wentworth does not pay or assume any debts or provide legal, financial, tax advice, or credit repair services. You should consult with independent professionals for such advice or services. Please consult with a bankruptcy attorney for information on bankruptcy.
How do I get rid of debt collectors without paying?
If you don’t want a debt collector to contact you again, write a letter to the debt collector saying so. We have sample letters that you can use to respond to a debt collector who is trying to collect a debt.
The CFPB’s Debt Collection Rule requires debt collectors to provide certain information when they first communicate with you, or shortly after, which is often in a letter called a validation notice. The notice includes information about the debt and the debt collector, as well as a “tear-off” form with checkboxes you can fill out to dispute or request more information about the debt. If the debt collector provides a way for you to submit the letter electronically, you can do that instead of sending a letter by mail.
Once a debt collector receives your letter requesting they stop contacting you, they’re not allowed to communicate with you again except to:
- Keep in mind that it’s important that you respond to the debt collector in writing, even if they provide the validation information over the phone or through email. If you’re disputing the debt, it’s also important to do it immediately, even before you insist that they stop contacting you.
- Stopping communication with a debt collector doesn’t make the debt go away. In fact, they may find alternative ways to collect it from you. For example, they can file a lawsuit against you or report negative information to a credit reporting company, although that won’t always happen.
- If you believe you don’t owe the debt or it isn’t accurate, you can write to the debt collector to ask for their evidence. Once you notify the debt collector in writing that you dispute the debt, as long as it is within 30 days of receiving a validation notice, the debt collector must stop trying to collect the debt until they’ve provided you with verification in response to your dispute.
- You may also have questions about whether they are collecting a debt that isn’t yours or trying to collect an improper amount, and you can consider consulting an attorney that specializes in these types of cases to learn more about your rights and options.
If you’re being contacted by a debt collector, it’s important to keep a record of any letters, documents, or communications they send to you. Write down dates and times of conversations, along with notes about what you discussed. These records can help you if you’re disputing the debt, meeting with a lawyer, or going to court.
If you send the debt collector a letter, make a copy and send the original to the debt collector. It’s also generally a good idea to send the letter by certified mail. If you pay for a “return receipt,” that gives you proof the debt collector received your letter. You may also send the letter electronically. Just be sure to keep a copy.
Also, be careful what you say to a debt collector because they keep records as well. They can track any information you provide, including personal information or if you.
Do debt collectors ever sue?
If you receive a notice from a debt collector, it’s important to respond as soon as possible—even if you do not owe the debt—because otherwise the collector may continue trying to collect the debt, report negative information to credit reporting companies, and even sue you.
If you get a summons notifying you that a debt collector is suing you, do not ignore it—if you do, the collector may be able to get a default judgment against you (that is, the court enters judgment in the collector’s favor because you didn’t respond to defend yourself). The debt collector could then garnish your wages and bank accounts, meaning it could take money from your paycheck or accounts. Make sure you respond by the date stated in the court papers so you can defend yourself in court. If you are sued, you may want to consult an attorney.
The law protects you from abusive, unfair, or deceptive debt collection practices. Here is information about some common debt collection issues:
- It is important that you respond as soon as possible if a debt collector contacts you about a debt that you do not owe, that is for the wrong amount, that is for a debt you already paid, or that you want more information about. Make sure you respond in writing to dispute the debt. If you don’t, the debt collector may keep trying to collect the debt from you and may even end up suing you for payment.
- Within five days after a debt collector first contacts you, it must send you a written notice, called a “validation notice,” that tells you (1) the amount it thinks you owe, (2) the name of the creditor, and (3) how to dispute the debt in writing. Don’t give a debt collector any personal or financial information until it sends you this validation notice—it may be a scam.
- Make sure you dispute the debt in writing within 30 days of when the debt collector first contacted you. If you do so, the debt collector must stop trying to collect the debt until it can show you verification of the debt. You should dispute a debt in writing if:
For sample dispute letters, see the CFPB’s “What should I do when a debt collector contacts me?” If you have already paid the bill that the debt collector is trying to collect, include that explanation in your letter and send copies (but not originals) of any receipts, canceled checks, or other information you have to show that you already paid the bill. Send the dispute letter by certified mail with a return receipt, and keep a copy of the letter and receipt.
For more information, see the FTC’s “Don’t recognize that debt? Here’s what to do”.
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
Debt collectors cannot make false or misleading statements. For example, they cannot lie about the debt they are collecting or the fact that t
How do I dispute a debt collection?
If you don’t believe you owe the debt, you can dispute it with the debt collector and the credit reporting company. If you dispute the debt in writing within 30 days of receiving information about the debt from the collector, then the debt collector must send you verification of the debt.
What happens when you are handed over?
Rising interest rates and an uptick in inflation are squeezing South African consumers between the proverbial rock and hard place, as the cost of servicing debts goes up while the purchasing power of their money declines.
The most affluent consumers in South Africa have the highest increasing default loan rate. Experian Consumer Default Index (CDI) statistics reveal a rapid increase in the rate of people who defaulted on their loans in the fourth quarter of 2021.
“The most affluent consumer group, the luxury living segment, makes up 2.5% of the South African population, yet accounted for 35% of total credit exposure in 2021 Q4 [quarter 4],” explained Jaco van Jaarsveldt, the chief decision analytics officer at Experian Africa.
South Africans are struggling with their debt, causing them to default. Considering this, it’s safe to assume that more people are going to be receiving those dreaded phone calls and letters from businesses they owe money to.
When your bills outweigh your income and the debt collectors won’t stop harassing you, what do you do?
The National Debt Collection Act 114 of 1998 regulates the process of collecting debts in South Africa.
Debt collection is when an attorney, a person who is an agent of an attorney or a registered debt collector collects, on behalf of the credit provider, an outstanding amount plus lawful interest, admin costs and collection fees, which by law is capped to certain amounts.
If a debt collector charges for their services, they must be registered with the Debt Collectors Council. A debt collector is not allowed to:
- Harass or intimidate you
- Charge you more than the law allows
- Threaten you with legal action if they don’t intend to take it
It is important to know exactly what the role of the debt collector is. They are tasked with collecting money and usually have no interest in your circumstances. It’s simple; your account has been handed over to them to recover the money you owe the credit provider. They are paid a percentage of the amount collected while charging service fees for doing so.
A debt collector can only collect the capital amount of the transaction; lawful interest; and his or her administration fee and expenses. The fees are structured by the National Council for Debt Collectors.
It is important to first verify any claims made by debt collectors. For claims about consumer finance, including personal loans, credit cards and store cards, you have a legal right to a statement of the amount owed and how it was calculated. If a debt collector refuses to send you copies of loan documents or statements for an alleged debt, you have the right to complain to the Debt Collectors Council. You are also entitled to refuse to pay anything until they give you details in writing and supporting documents to their claim.
Always remember that you should not sign an admission of liability, or consent to judgement, an emoluments attachment or garnishee order.
One of the biggest mistakes consumers make is waiting until the last moment before starting the communication process. Consumers should rather be transparent with their creditors from th