here is another article i received from California legal aid..note...this is from a former bill collector..that gives seminars to consumer advocates....not a lawyer... (numbers 9 and 10 are interesting).....most on forum are aware of all this..but some newbies might be interested....
1...The more you pay, the more they earn: collectors get commissions..usually 30 to 50 percent. on money they bring in. the commissions often double or triple their salaries. this means they have a strong incentive to press for a big "down payment". in fact,blaming it on a mythical manager is designed to deflect your anger away from the collector.
2. payment deadlines are phony: payment dedlines set by collectors are meaningless. collectors simply wnt to create a sense of urgency, because the longer it takes to get you to pay, the less chance there is of collecting the debt.
3. they dont need a "financial statement". collectors often claim they need a financial statement from you so they can work out a realistic repayment plan. you will notice, though that the information they ask for-- bank acct numbers, references, places of employment-- is far more than they need for that purpose. they are fishing for information that will help them find you if you move or sue you if you dont repay the debt.
4.the threats are inflated: collectors always graphically detail the disastrous consequences of failing to pay a debt "your credit rating will be ruined" they warn (not mentioning that its probably already not so good since a collection company is after you). your personal possessions, including your car, could be seized and sold at a public auction.--never mind that this virtually never happens: its illegal in some states and impratical everywhere because of the expense. probably 95% of the time, collectors go after only bank accounts and wages.
5.you can stop their calls: you have the right under fedral law, to tell a collection agency to stop contacting you. just do it in writing, and contacts must stop.unless they are to tell you
collection efforts have ended or the agency is going to take a specific action.(like filing a lawsuit) against you.
6.they can find out how much you have in the bank: a collector who has your bank account and social security numbers can easily find out the balance of the account. because big banks now have automated account inquiry systems, the collector doesnt even have to speak to a human being. all it takes is a phone call to the automated voice-mail service. when the account number and solcial security numbers are punched in. the computer promptly supplies an up-to-the-minute account balance.
7. if you are out of state they are out of luck: collection agencies routinely call out of state debtors to demand payment. but if a creditor has sued you and won, you are probably safe from enforcement action if you bank and work outside the state where the lawsuit was filed. thats because to collect, the collection agency must transfer the judgment to you state, which is prohibitively time consuming and expensive.
8.they cant take it all: certain income such as social security, pensions, and 75% of take home pay, is exempt from enforcement action. you can also file a claim of exemption from a garnishment of the OTHER 25% of you wages if it would cause you or your family severe hardship.
9. they may not know a thing: sometimes a collection agency lawyer, trying to collect a judgment debt, sends questions on a court form asking about your income and assets. these are called "post-judgment interrogatories" or information supoenas" this is good news for you: it means that the agency has no information and is hoping you will be intimidated enough by this legal questionnaire to complete it, many people do,because the forms list sanctions, such as fines, for not doing so. but normally, it is too expensive and time-consuming for an agency to go to court and force compliance.
10.you can lower your payments on student loans: if you are behind on student loan payments, you can apply for what every collection agency hates::"reasonable and affordable payments" under the 1992 higher education act. if you can document financial hardship, a collection agency must accept as little as 10 dollars per month for at least six months. as long as you make the payments, you are eligible for title IV student aid, and you can continue the payments unless your circumstances change..
1...The more you pay, the more they earn: collectors get commissions..usually 30 to 50 percent. on money they bring in. the commissions often double or triple their salaries. this means they have a strong incentive to press for a big "down payment". in fact,blaming it on a mythical manager is designed to deflect your anger away from the collector.
2. payment deadlines are phony: payment dedlines set by collectors are meaningless. collectors simply wnt to create a sense of urgency, because the longer it takes to get you to pay, the less chance there is of collecting the debt.
3. they dont need a "financial statement". collectors often claim they need a financial statement from you so they can work out a realistic repayment plan. you will notice, though that the information they ask for-- bank acct numbers, references, places of employment-- is far more than they need for that purpose. they are fishing for information that will help them find you if you move or sue you if you dont repay the debt.
4.the threats are inflated: collectors always graphically detail the disastrous consequences of failing to pay a debt "your credit rating will be ruined" they warn (not mentioning that its probably already not so good since a collection company is after you). your personal possessions, including your car, could be seized and sold at a public auction.--never mind that this virtually never happens: its illegal in some states and impratical everywhere because of the expense. probably 95% of the time, collectors go after only bank accounts and wages.
5.you can stop their calls: you have the right under fedral law, to tell a collection agency to stop contacting you. just do it in writing, and contacts must stop.unless they are to tell you
collection efforts have ended or the agency is going to take a specific action.(like filing a lawsuit) against you.
6.they can find out how much you have in the bank: a collector who has your bank account and social security numbers can easily find out the balance of the account. because big banks now have automated account inquiry systems, the collector doesnt even have to speak to a human being. all it takes is a phone call to the automated voice-mail service. when the account number and solcial security numbers are punched in. the computer promptly supplies an up-to-the-minute account balance.
7. if you are out of state they are out of luck: collection agencies routinely call out of state debtors to demand payment. but if a creditor has sued you and won, you are probably safe from enforcement action if you bank and work outside the state where the lawsuit was filed. thats because to collect, the collection agency must transfer the judgment to you state, which is prohibitively time consuming and expensive.
8.they cant take it all: certain income such as social security, pensions, and 75% of take home pay, is exempt from enforcement action. you can also file a claim of exemption from a garnishment of the OTHER 25% of you wages if it would cause you or your family severe hardship.
9. they may not know a thing: sometimes a collection agency lawyer, trying to collect a judgment debt, sends questions on a court form asking about your income and assets. these are called "post-judgment interrogatories" or information supoenas" this is good news for you: it means that the agency has no information and is hoping you will be intimidated enough by this legal questionnaire to complete it, many people do,because the forms list sanctions, such as fines, for not doing so. but normally, it is too expensive and time-consuming for an agency to go to court and force compliance.
10.you can lower your payments on student loans: if you are behind on student loan payments, you can apply for what every collection agency hates::"reasonable and affordable payments" under the 1992 higher education act. if you can document financial hardship, a collection agency must accept as little as 10 dollars per month for at least six months. as long as you make the payments, you are eligible for title IV student aid, and you can continue the payments unless your circumstances change..
) This bank does not have branches in our new state, but does do business in the next state over. Since we live close to the state line, I have just been using a branch across the state line.
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