Why when you go to the mailbox you become clairvoyant? You transform from a mom to a person who can see inside envelopes. Yes, I’m talking about you, mom. You get the mail when the postman arrives and you flip through it like a beaver chewing on a log. Just by your feeling, you can tell if there is a nice letter from mom or a nasty letter from some attorney or collection agency. You magically take that letter and put it under the coffee table so that when your smart brother-in-law comes over, you can ask him what he thinks.
After all, he’s smart about these things. But what’s amazing about his ability to see inside envelopes is that he can pick out a check in the dark. I congratulate you for that talent. Most men aren’t blessed with that talent, so we rely on our wives to sort through the mail. Yeah, when that nasty letter comes, mom puts it under the coffee table, never to see the light of day again because she hates your brother anyway and wouldn’t ask him the time of day.
So, let’s get into that. That nasty letter you’re afraid to open is quite amusing. I’ll tell you why. It always helps to have knowledge of why certain laws are on your side so you can enjoy laughing as I do when my daughter shows me her nasty cards. The Fair Debt Collection Practices Act which was amended by our famous Bill Clinton in (1997) has some very strict laws. When you are first contacted by a creditor/bill collector, either by mail or by phone, you must provide them with the following information. It’s called the mini miranda. Just like on TV. Yes, you have rights.
The message, whether oral or written, must say this. “This is XXXx XXXXX and this is an attempt to collect a debt. You have thirty days FROM THE DATE OF THIS CALL OR THE DATE YOU RECEIVE THIS LETTER, to dispute ANY part of the debt. If you do not respond, we ONLY you can ASSUME that the debt is valid and you can use all legal means to collect it.
Now read carefully. She says that she has thirty days to dispute ANY portion of the debt. Well mom, here’s Sir Galahad to the rescue. Read More. It usually says “Greetings, we own this debt. You owe us $5,000.00 Now, we understand your problems and want to help you (big deal). If you send us a payment of $2,500.00 within the next ten days, we will consider this account as paid in full and notify the credit reporting agency.
Okay, mom, think about what they just did. She was told to pay $2,500.00 BEFORE she had a chance to dispute any part of the debt. This is a violation of Federal Law and they can be fined $1,000.00 and there is NO defense. So from now on, even if the envelope looks official because it might have a lawyer’s address on it, open it up and look for traps like this. Now I have more students who laugh when they get their mail instead of facing deficiency judgments for not responding. Keep an eye out for another article I’ve posted on “responding to lawsuits” regarding debt collectors.
Regis SaugerAuthor