Articles - Archived Expert Advice

Debt Collection Harassment

I have gotten behind on a few high-interest credit card accounts. The monthly payments continue to increase each month and debt companies will not stop harassing me. Can you help?

There are many ways to stop harassment from debt collection agencies. The Fair Debt Collection Practices Act (FDCPA) is a federal law that regulates debt collection—and applies only to debt collection agencies and attorneys.

Consider writing a cease letter. Federal law requires collection agencies to stop collection efforts after receiving a written request. Note that this doesn't apply to creditors collecting their own debt. Be sure to keep a copy of the written request and send it via certified mail with a return receipt. Also, record any correspondence made with a creditor or collection agency.

If a cease letter does not stop collection calls, a letter from an attorney usually will, so consider contacting one. The attorney may also be able to raise legal claims on your behalf for violations of the FDCPA.

Another option is to negotiate a workout agreement. This is a mutual agreement by the borrower and lender to reschedule loan payments or modify terms. Regardless of the arrangement you work out, do not let creditors pressure you into an arrangement you are not comfortable accepting, thereby getting you to pay more than you can really afford. However, if you do decide to negotiate a payment plan, it is critical to pay enough each month so are to actually make a dent in your debt. Finally, get any payment arrangements in writing to protect yourself.