Bankruptcy FAQ

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Collection agencies have been calling me all hours of the day and night. How can I get them to stop contacting me?

It's against federal law for a bill collector who works for a collection agency (as opposed to working in the collections department of the creditor itself) to call you at an unreasonable time. The law presumes that calls before 8 am or after 9 pm are unreasonable. But other hours may be unreasonable, too, such as daytime hours for a person who works nights. The federal Fair Debt Collection Practices Act (FDCPA, 15 U.S.C. § 1692 and following) bars collectors from calling you at work, harassing you, using abusive language, making false or misleading statements, adding unauthorized charges, and many other practices. Under the FDCPA, you can demand that the collection agency stop contacting you, except to tell you that collection efforts have ended or that the creditor or collection agency will sue you. You must put your request in writing.

The collections department of a local merchant is harassing me. Can I do anything about it?

Unfortunately, the federal Fair Debt Collection Practices Act (FDCPA) does not apply to the collection department of a creditor (it only applies to outside collection agencies). However, many states have laws on fair debt collection that do cover these collection departments. Check with your state consumer protection office to see if your state law applies to in-house collectors and to find out what types of collection practices it prohibits.

A bill collector insisted that I wire the money I owe through Western Union. Am I required to do so?

No, and it could add more money to your debt if you did do it. Many collectors, especially when a debt is more than 90 days past due, will suggest several "urgency payment" options, including:

Sending money by express or overnight mail. This will add at least $10 to your bill; a first-class stamp is fine.
Wiring money through Western Union's Quick Collect or American Express's Moneygram. This is another $10 waste.
Putting your payment on a credit card not charged to its maximum. You'll never get out of debt if you do this.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

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