Debt collectors have a seemingly unending bag of tricks when trying to get payment from consumers. Most consumers, on the other hand, have little if any experience dealing with debt collectors. Generally, consumers commonly make one or more of 5 mistakes when confronted by a debt collector. These include (1) Failing to Get Debt Validation; (2) Failing to Find Out When the Last Payment on the Debt was Made: (3) Agreeing to a Payment Plan; (4) Not Registering Their Cell Phone on the National Do Not Call Registry: and (5) Not Seeking Legal Counsel.
1. Failing to Get Debt Validation
Getting debt validation is almost always a good idea. It is possible that the debt may not be yours. In addition you may not recall the debt or the original creditor. The debt collector may also be trying to recover unlawful interest. The list goes on and on.
2. Failing to Find Out When the Last Payment on the Debt was Made
Finding out when the last payment on the debt was made is critical because this tells us when the statute of limitations clock started ticking. For instance, in Kentucky the statute of limitations is 5 years from the date of the last payment (default), and in Tennessee the SOL is 6 years. Statutes of limitations vary from state-to-state, but nearly all run from the date of the last payment.
If the statute of limitations has expired, then the debt collector cannot file suit to recover the debt, and if it does, it violates the Fair Debt Collection Practices Act.
3. Agreeing to a Payment Plan
Many times a debt collector will seem willing to work with a consumer to establish a payment plan. Often, this is because the statute of limitations has expired, and when the consumer enters into a payment agreement with the debt collector, the SOL is reset. Then if the consumer defaults on the payment plan, the debt collector can sue on the entire debt.
4. Not Registering Their Cell Phone on the National Do Not Call Registry
If a consumer registers his cell phone on the National Do Not Call Registry and a debt collector calls, the debt collector has violated the Telephone Consumer Protection Act and the Fair Debt Collection Practices Act. The statutory damages under the TCPA are $500 to $1500 per call. And, the statutory damages under the FDCPA are up to $1000 or actual damages plus attorney fees.
5. Not Seeking Legal Counsel
Most, if not all, consumer lawyers do not charge for an initial consultation, So, why not take advantage if you think your rights under the TCPA or the FDCPA have been violated?
Debt collectors have a range of tricks and tactics to separate consumers from their money. Be smart and don't make the 5 common mistakes above.
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