WREX.com – Rockford’s News LeaderWarning About Debt Collectors

Warning About Debt Collectors

By David Rivelli

ROCKFORD - During these tough economic times the Better Business Bureau says debt collectors face unique challenges that may tempt them to take part in illegal behavior.

"We had a 20 percent increase in inquires on debt collection practices since last year, and received 1,248 complaints against collection agencies in the past 12 months as well," said Dennis Horton, Director of the Better Business Bureau of Chicago and Northern Illinois - Regional Office in Rockford.

You may want to file a complaint if you get more than five phone calls a day, threats of being put in prison or other forms of harassment. "In some cases those scare tactics are used to try to get you to pay the debt and that's what we are concerned about," said Horton.

According to the BBB, a debt collector is permitted to contact you in person, by mail, phone, telegram or fax. However, they may not contact you before 8:00 a.m. or after 9:00 p.m. unless you agree. They also are not allowed to contact you at work if your employer doesn't approve.

Dick Brown is President of the Rockford Mercantile Exchange, a local debt collection agency. He says the number of complaints give people a false belief about the industry. "Collection agencies have developed a stigma over the years and I don't think that's true today as much as 10 or 15 years ago," said Brown.

Brown says agencies like his have a job to do just like anyone else and the ones that abide by the rules will be able to help you get out of debt. "We employ 35 people there about, it's their livelihood. We'll try to cooperate with them we understand that times are tough," said Brown.

The following debt collection practices are among those that are prohibited.

(Information from BBB Press Release)

Debt collectors may NOT:

• Harass, oppress or abuse you or any third parties they contact.
• Publish a list of consumers who refuse to pay their debts.
• Take or threaten to take your property unless this can be done legally.

They are also restricted in the statements they can make to debtors. Debt collectors may NOT tell you that:

• You will be arrested if you do not pay your debt.
• They will seize, garnish, attach or sell your property or wages, unless the collection agency or creditor intends to do so and it is legal to do so.
• They will take actions, such as a lawsuit, against you, when such action legally may not be taken, or when they do not intend to do so.

Finally, debt collectors may NOT:

• Give false credit information about you to anyone.
• Send you anything that looks like an official document from a court or government agency when it is not.
• Use a false name.