|Posted on June 22, 2015 at 9:40 PM|
Creditors are awful. The phone calls. The letters. They even call your neighbors and family!!!! They don't understand that you are struggling to pay your electric bill and certainly can't spare $100 for each creditor every month.
Here's some basic facts about collections:
- In most cases, creditors can't garnish your wages until they have obtained a judgment against you. This means that they have to sue you and go to court to obtain a judgment before money can be taken out of your pay check. There are exceptions to this such as foreclosures and debts owed to the government like taxes, overpayment of state or federal benefits, and student loans.
- If your spouse didn't co-sign on the loan, then your spouse does not owe the debt. There are exceptions such as medical bills. If the medical bills are incurred during the marriage, then both of you owe them even if only one of you was seen by a doctor.
- The Fair Debt Collection Practices Act (FDCPA) prohibits creditors from using unfair, abusive, or deceptive practices to get you to pay a debt. The Act applies to consumer debts like credit cards, medical bills, and mortgages. The Act does not cover debts owed by a business.
- Creditors should not call you before 8:00 am or 9:00 pm unless you give them permission to do so.
- Creditors should not call you at work if you tell the creditor that you're not allowed to get calls at work.
- Creditors can call friends, neighbors, and family members, but only to get your phone number, address, and where you work. A creditor is NOT supposed to discuss your debt with anyone other than you, your spouse, and your attorney.