Action Line: Don’t fall for bill collector’s pressure tactics

A reader: I just got a phone call from someone saying that they were from a collection agency. They told me that I owed $1,100 from a cell phone account in 1992. I’m not even sure I had a cell phone in 1992. They were very rude and told me that I had to pay right now. They threatened me. They told me I had to give them checking account or credit card info to pay the bill over the phone. I didn’t know what to do. They really scared me. Can they hurt my credit? Do I have to pay this bill?

Action Line: That’s exactly what they wanted to do. Scare you. Many victims will pay the bill without even knowing if it is their debt because they are scared that this caller will “wreck” their credit or arrest them or deport them. These are just a few of the threats that BBB hears from consumers. Don’t pay them! Don’t pay them until they send you proof of debt in writing to verify that it is in fact your debt. They cannot send someone out to arrest you or deport you.

According to the California Attorney General’s Office, state law prohibits debt collectors attempting to collect or collecting a consumer debt by using obscene or profane language . A collection agency or its employees must not threaten to do anything that it cannot legally do. It cannot damage your property or physically injure you or others. (California Civil Code section 1788.10)

Collection agencies may only call you between 8 a.m. and 9 p.m. If those hours are not convenient for you, you may request other times. There is no limit on the number of times that they can call you. You can always ask for contact to be done in writing.

Information a collection agency must provide to you, either in its first contact with you regarding an unpaid bill or in writing within five days after that contact:

▪ Amount you owe;

▪ Name of the creditor; and

▪ Process to follow if you dispute the bill.

The five-day notification period applies whether the collection agency's first contact with you is by telephone or in writing, but many agencies include that information on their initial written notice, whether or not they have telephoned first.

Each written notice demanding payment for a bill must contain the following information (15 United States Code section 1692g(a)):

▪ Creditor's name (on the first notice);

▪ Name, address and telephone number of the collection agency;

▪ Date the notice was mailed;

▪ Amount due; employer contact; and

▪ A statement that the debt is assumed valid unless consumer notifies collector within 30 days of receipt of notice that the debt is disputed.

This story was originally published July 13, 2015 at 6:00 AM with the headline "Action Line: Don’t fall for bill collector’s pressure tactics."