I often wonder why people listen to Dave Ramsy when he has a history of being so wrong on almost every financial statement he has ever made. However; his response really takes the cake –
“Paul” sent a letter to Dave asking how to handle and interact with debt collectors. Dave’s response was so astonishingly wrong that we had to share in the hopes of reaching at least 20 consumers who will want a true and actual helpful answer.
Dave’s response was “You’ll run into all sorts of collectors, no matter what kind of debt you have. Occasionally they are friendly and understanding, while others can be downright mean and nasty. Whatever their approach is, you have to keep in mind they’re all after one thing—your money. Understand what I’m saying here, Paul. If you have debt, you have a legal and moral obligation to pay it.”
Wrong wrong wrong….
First and foremost; let me be clear. Even if you owe a debt, the debt collectors are bound by law to follow the rules and guidelines set forth of the Fair Debt Collection Practices Act. Period. And when these collection agencies fail at complying with “the law”, then they can and should get in trouble for it.
Dave did say in a very quick, brushed under the rug statement, “consumers should know their rights”.
Gee, thanks for nothing Dave.
When a collection agency violates the law, they are to be fined no less than $1164 for each violation. If a debtor is called at 9:30pm, or if the collector fails to state who they are and the name of the collection agency they are calling from, or if they called anyone else outside of the debtor and gives any account information, they are to be fined $1164 for each violation. If the collection agency committed all 3 violations mentioned above, then they are to be fined $3492, plus any damages and attorney fees if an attorney was hired to represent the debtor.
Yes, as Dave Ramsey said, you should be nice to the debt collector. There is no reason to be rude. This is not the point. The questions which should have been asked by Dave back to Paul are, what has the collection agency done which you feel may be a violation of your rights? Are you, the consumer, aware of the Fair Debt Collection Practices Act? Two of the most important questions Dave should have asked was if “Paul” was aware of the debt AND is there a chance it is out of statute of limitation? If a debt is paid to a collection agency that is out of statute of limitation, this will drop the consumer credit score significantly and stay on their credit for an additional 7 years. The statute of limitation goes according to two dates. Either the date of last payment or the date the account was opened. Whichever was the most recent.
Case and point of this article, if you have any questions regarding really anything, ask someone in that particular industry. After all, would you let a janitor operate on your brain?