DO YOU HAVE HARASSING BILL COLLECTORS IN YOUR LIFE?

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Did you know that I was a bill collector for over 17 years?  That’s right! I did that job, not because I liked it, but because I needed the money.  When I was a collector, I would get harassed by people all the time.  I had to change my phone number at home to non-published and changed my name when talking to people.  Most of us had aliases because of the threats that we would get.  Now I know that this sounds backwards, because most bill collectors harass consumers, but it’s true.  We would get bomb threats.   Once someone came in and paid their bill and then set off a smoke bomb outside our office door.  I would personally get threats on my life and had to basically hide out so that they couldn’t find me.  It just wasn’t fun!

So as a consumer, how do you handle those nasty bill collectors?

Well, the first thing you must do is be able to communicate with them and have a plan when you get on the phone, and never waiver from it.  If you need to offer a payment arrangement, then know going in how much you CAN afford and stick to that number.  If you’re trying to settle your account, then make sure that you can pay what you say you’re going to pay.  Did you know that you can settle accounts with collection agencies and don’t have to pay the full amount?  In most cases, settlements are how collection agencies make all their money.   It’s much more beneficial to settle for a lesser amount if you have a lump sum because you could save thousands. 

If you’re being harassed by a collection agency to the point where you can’t deal with it anymore, then you can send them a cease and desist letter.  What this does is tells them to stop communicating with you.  Believe it or not, this is a federal law.   You can ask for no communication from a collection agency.  This is one of the most effective ways to stop those harassing calls from coming in.  But remember that it doesn’t make the debt go away, it just stops the calls.  You will still have to handle your debt sometime down the road. 

As a consumer, you have rights.  A cease and desist letter is part of those rights.  You can view all of your rights as a consumer by visiting the Federal Trade Commission website at: www.ftc.gov.   Look up the Fair Debt Collection Practices Act in the search menu.  That’s the law that was passed in the late 70’s to safeguard consumer from those nasty debt collectors, at the time, they were running rampant with threatening consumers with anywhere from breaking legs to throwing them in jail for not paying up.  Thank goodness that has a changed. 

The Debt Lady says, “Know your rights, know them well and you will never be harassed again!”

If you would like to submit a question for the Debt Lady, email it to thedebtlady@thedebtlady.com. Follow the Debt Lady on Twitter at the_debtlady, on Facebook at debt lady and the Blog at thedebtlady.blogspot.com.

 

Do you have to pay 98 years on your credit card?

I was surfing the web the other day trying to get information on credit card laws, and I opened a site that I thought was exactly what I was looking for. My computer started acting funny almost immediately, and then I got a message saying that I'd been infected with a virus. I talked with my IT guy who told me that there are people who put up these bogus websites with information intended to attract Americans specifically. When you enter their site, your computer is infected with the virus. Why do people do things like that? Unfortunately there are people out there who are only happy when causing trouble and destruction for others.  Fortunately, they are not the majority. I'm going to share a little secret that I've learned from dealing with people who thrive on others' failures: Ignore them. That's right. Go on with your life and don't let them know that they're getting to you. My IT guy fixed my computer and now I know what type of sites to avoid.

 

Once my computer was fixed I was able to find what I was looking for.  The credit card companies have to be more accountable to their consumers, which is great and long overdue. On your statement the credit cards companies have to tell you how long it will take to pay off your credit card.  I saw a statement the other day from a major credit card company.  The balance on the card was around $16,000 and the interest rate was 24.99%.  The statement showed that if the person kept making minimum payments it would take 98 years to pay off.  Now wait a minute!  How can that be?  There are no companies in the world giving loans for 98 years because that would be stupid, they would never get paid.  So how can a credit card company go that long?  Because they make a lot of money off of you!  And because they want you to be a customer for life.  In this example the person would be paying off over $150,000 within that time.  That’s an increase of over 100 times.  Now that’s highway robbery.  So what do we do about this?  We pay off our credit cards as fast as possible and don’t charge them again.  How you ask?  It’s easy, you just have to know how to do it, and do it.  And more importantly!  MAKE MORE MONEY!  If you are able to handle your finances without any problems, then you are more able to make more money.  It sounds silly but it’s true.  Most people have a lot of trouble dealing with money and finances, once you understand what you are doing and have a plan in place, you can focus on the other things in life like family, friends, and making MORE.  Wouldn’t that be a shift in your outlook on life?  I thought so. 

 

The Debt Lady says, “Get the knowledge, handle the debt, make more money and breathe a little easier!”

BILL COLLECTORS THREATS ARE ONLY THREATS

Bill Collectors CANNOT threaten to sue you unless they can actually sue you.  Believe it or not, there are a lot of different laws and rules involved in the actual process of law suits.  Throwing around the all mighty, “I’m going to sue you,” phrase scares a lot of people.  Not only do Bill Collectors say it but so do millions of people and businesses in America.  Your dog can walk into the neighbors yard and poop on it, the neighbor can sue you for it!  Its as stupid as that.  So here are some things to remember if you get threatened by a lawsuit.

1.  Is the company an actual law firm or have an attorney on staff, or are  hey just a regular collection agency?  A collection agency without an attorney, can’t sue you.

2.  Is the law firm in your state?  If not, unless they have an attorney in your state, they cant file across state lines.

3.  Do they have your correct address for service?  This is a silly question, but if they have no idea where you are, they cant get you served, thus no law suit can be filed. 

 

Remember, a threat is a threat is a threat, and the majority of the time that’s all it is, don’t get me wrong, they can and do sue, but get all of the information first.  Know what's happening and be prepared!

 

The Debt Lady says, "Know what you're doing so they dont stomp on your head!" 

Why Do We Pay Money For Things?

By Jerri Simpson, The Debt Lady

Did you ever ask yourself that question? Why do we have to have money? Why do we have to put so much emphasis on money and why do we care?
 
Most of those questions you can answer for yourself, but I want to give you a different view on this whole thing, lets address this question. 
 
Why pay money for things?
 
Because somebody, at some point in time wanted something that somebody else had. They had a cow and wanted some chickens; they traded one for the other and they got what they wanted. At some point somebody realized that they didn’t always have a cow to trade with and wanted more. They developed a way of making nifty looking coins that someone said was worth something, then they invented the almighty dollar. Now I don’t know about you, but a green piece of paper that has $100 on it, doesn't seem right to exchange for a DVD player or game system. How can that piece of paper be of the same value? Because somebody said so, that’s how.
 
So now that I answered my version of this question, is your answer the same as it was before I addressed it? 
 
The bottom line here is that we have to have money because somebody at some point wanted something and didn’t have anything to exchange for it. Emphasis is placed so heavily on it because we need it for almost everything that we do. Since we don’t have a farm anymore to make our own food, or cows grazing in the pasture, we're limited in our means and have to rely on the almighty buck to get us by. 
 
Now that I put this into a different perspective for you, maybe you can realize the real value of money, which is just a means to exchange for something you want and not a big stupid problem that absorbs your life.

The Debt Lady says, "Dream big, love life and be happy!"

 

Don’t let this happen to you! A true story of Tom the tomato.

The tomato seed cost about five cents and was planted in the dirt.  It grew into a mighty tomato as it bathed in water and sun.  One day the tomato is sunning itself and minding its own business when it hears a noise.  All of a sudden the ground starts to shake and the tomato tumbles over.  All at once it is scooped up by a metal arm and dropped on top of a thousand other tomatoes.  Smoke fills the air and the tomato can’t see the sky.  Finally the smoke clears and clouds move by.  The tomato travels far from its home, jostling and crowded amongst countless other tomatoes.  Shortly after the motion stops there is a great scoop that reaches in and picks it up.  It is set on a belt that takes it far within the inner workings of a large factory.   A human hand picks up the tomato and eyes inspect it.  The tomato feels exposed and uncomfortable in its new surroundings.  Once inspected, the tomato is put into a crate and loaded on the back of a large truck, it goes dark and the tomato gets scared.  After what seems like forever, light shines once again and the tomato is moved with a forklift into a cool space.  Just when it thinks its adventure is over it is taken into the produce section where it is carefully shined and polished and placed on top of many other tomatoes.  The tomato waits. 

Finally a hand touches the tomato and squeezes it gently.  It is placed into a plastic bag and wheeled around.  Once at the checkstand the tomato is scanned and costs $1.07--marked up over 20 times its original cost.  The person hands over a credit card that she knows she can’t pay and leaves the store.  Now, the tomato travels to the home to be made into sauce for the family dinner.   The bag that the tomato rests in is picked up by some hands and placed on a counter.  Another person comes in with a different bag and knocks into the tomato with great force and the bag falls.  The tomato is crushed by a carton of white liquid and melts to the floor.   There are loud noises as the tomato falls into a great sleep and everything goes silent.  The tomato is scooped into a bucket and carried to the trash--never to be heard from again. 

The moral of this story is:  If you’re going to put charges on your credit card you need to make sure that you have a plan on how to pay them back, otherwise your spaghetti sauce will be lacking in flavor.

 The Debt Lady says, “Buy my book so that this doesn’t happen to you.”

 

 

Have you been served with a law suit?

Do you know what to do in this situation?  Most people don't have a clue, in actuality; most people ignore the paperwork that they get served to go to court.  This is a big mistake because believe it or not, you can handle it with communication.  Attorneys are people too, they just went to school longer than most of us.  Giving them a call, right after you get served and working out something with them, will help you in the long run.  If they get aggressive or angry, remain calm, they are only trying to make you upset, and believe it or not, it will work only if you let it. 

 

If you got sued because you didn’t have the money to pay a bill, then obviously in most cases you won’t have the money to pay the account in full, but you can work out something with the law firm that is favorable to you and the company you owe.  Remember, a law firm is a third party and not the original creditor, they are just working on somebody else’s behalf. 

 

Here are some helpful hints on how to communicate with a law firm:

 

     1. Breathe

     2. Don’t get angry, no matter what happens

3. Figure out the amount you want to pay a head of time    and stick to it

     4. Be persistent and get what YOU want

     5. Be truthful and never lie

 

I know these seem like silly hints, but under everything that you do are these simple tools that you can use to better your life.

 

The Debt Lady says, "You don’t need a hammer or screwdriver to handle an attorney."

Why do we pay money for things?

Did you ever ask yourself that question?  Why do we have to have money?  Why do we have to put so much emphasis on money and why do we care?

 

Most of those questions you can answer for yourself, but I want to give you a different view on this whole thing, lets address this question. 

 

Why pay money for things?

 

Because somebody, at some point in time wanted something that somebody else had.  They had a cow and wanted some chickens, they traded one for the other and they got what they wanted.  At some point somebody realized that they didn’t always have a cow to trade with and wanted more.  They developed a way of making nifty looking coins that someone said was worth something, then they invented the almighty dollar.  Now I don’t know about you, but a green piece of paper that has $100 on it, doesn't seem right to exchange for a DVD player or game system.  How can that piece of paper be of the same value?  Because somebody said so, that’s how.

 

So now that I answered my version of this question, is your answer the same as it was before I addressed it? 

 

The bottom line here is that we have to have money because somebody at some point wanted something and didn’t have anything to exchange for it.  Emphasis is placed so heavily on it because we need it for almost everything that we do.  Since we don’t have a farm anymore to make our own food, or cows grazing in the pasture, we're limited in our means and have to rely on the almighty buck to get us by. 

 

Now that I put this into a different perspective for you, maybe you can realize the real value of money, which is just a means to exchange for something you want and not a big stupid problem that absorbs your life.

 

The Debt Lady says, "Dream big, love life and be happy!"