Does anyone know anything about collection law?

[punkncat]

A buddy of mine is having an issue with a collection agency, and I really don't know where to start with telling him what to do.
I suggested he go to a lawyer, but they want $1500 just to talk to the other lawyer/agency and can guarantee no results.

This has been an ongoing issue for a few years. The agency will collect for about six months and then stop and allow intrest to build up for several months and then resume. They refuse money from his employer during the "off" time even sending back refund checks, but then the amount goes up evey time they resume.
Every attempt he has made at contacting them directly goes unanswered.

Who can he contact regarding this to try and get results, but without having to spend a great deal to do so?

[rkjunior303]

Go to his state's attorney general's site and file a complaint.

[Lohman446]

Have as complete of records as possible (including those refused checks) when doing so. Send a certified (signature required) letter detailing the complaint to the company.

[Hexis]

Start here:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm

Here's the actual law:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

I would recommend he reads it. Once he has a good understanding of his rights, use them.

[punkncat]

To be more clear, this is a judgement upon which they are collecting from my friend.
The debt collector took the case to civil court which my friend was not notified of. After the proceeding which the collector was granted an absentee judgement I think was the term...anyway. The court system refused to take the defendants word that due notice was not given as it came down to this person's word vs. the word of an court appointed individual who was charged with serving the summons.
The lawyer, whom said friend discussed this with, stated that disputing the validity of the appointed couriers claim was about the same as arguing the sun not to come up. No signature or other proof was required other than the word of this appointee. Common practice according to the lawyer for them to throw the things in a trash can, check off a list and get payed the next day for nothing. All of course in the favor of that individual and the parties for whom they are "working" for. Impossible to dispute because of course the person being served notice would deny it.

So does a judgement still fall under fair debt collecting? I know that my friend said that you could not bankrupt from under a judgement, as it can just be renewed and collect intrest. But how can it be legal for them to stop collecting at will to allow this debt to increase?

[beam]

For excellent financial advice, I recommend: http://www.daveramsey.com/

If you put "collection" in the search it will return some good stuff including a Q&A.

Ramsey hates collection agencies and he knows their practices well.

[Bang and Breach]

Taken from Beam's Link.
( http://www.daveramsey.com/etc/cms/q&a_collectors_7039.htmlc )

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Q&A About Collectors

Some of the most frantic calls I get on “The Dave Ramsey Show” come from people being hounded by collection agencies. It’s their job to make you angry or scared and they do it well. They know that if they can get you all worked up that you will act on that emotion and do something stupid like pay them instead of buying groceries. They have a plan and so should you. Be calm – don’t let some kid in a cubical 500 miles away take control of your life.

Here are some of the top questions I get about dealing with collectors:

Do I have to talk to collectors?

* Only talk to them once every two weeks so that you can remind them that you will pay them as soon as you can. Then let your answering machine take the rest of the calls. Remember that NON-ABUSIVE communication will go a long way to coming to repayment terms.

The collector wants the balance of my debt but I don’t have any money.

* Figure out how much you can pay on each of your debts after you have paid for the necessities – food, shelter, utilities, and clothing. Tell them you are going to send them payments – they will cash the checks. Send them what you can each pay period and you’ll be current in no time. They can sue you, but 99% of the time they won’t as long as you are sending them money.

Collectors are calling me at work. How do I make them stop?

* Send a certified letter telling them to stop calling you at work according to the Federal Fair Debt Collections Act. Be sure to send it certified because that way you have a receipt proving they got the letter. Otherwise they will claim they were never notified. If they call again remind them they are violating Federal Law and that if one more call is placed you will send a copy of your letter and a copy of the receipt to the Federal Trade Commission.

The collector said they will garnish my wages?

* Only the IRS and student loan companies can garnish your wages or seize your bank account without first suing you and winning. Unless you have been sued, this is a bluff. Collectors tell you they are going to garnish your wages as a scare tactic to get you to send them money. Remember you have a plan and stay calm.

Collectors are calling my parents and neighbors about my debt.

* This is illegal but not uncommon. Again send a certified letter that you are aware they have violated the Federal Fair Debt Collection Practices Act by releasing private information and should it continue you will document the misbehavior for purposes of a lawsuit.

Dealing with collectors is not about getting out of paying debt. You shot it Tarzan, you eat it. You created this debt so you will pay it but not at the expense of basic necessities. The trick is to keep setting your own priorities and have a written plan. You have rights!