How do debt collecters know who my friends are and their phone numbers? are they legally obtained?

Question

This is kinda a repost, I didn't word things quite well, they are calling my friends cell phones private numbers not listed in any phone book online or off, also i didn't need any references when i signed up for the card and i live 500 miles from any relative besides my mom or dad. can they legally check my cell phone records to get their numbers or what else could it be, and before any tells me "shoulda payed your bills" i was in a hospital bed half dead when this card went bad and they would not work with me to get the amount due down to a reasonable amount i could afford, as a matter of fact their customer service told me the only way they would work with me on the matter is if the card went into defualt, which it obviously did.

Answer 1

Okay, I'm going to start off telling you about your rights as a debtor, and then we'll go into how you can go about dealing with your particular debt collector.

First off, it sounds like your debt collector is violating the law.  Every debtor in the US is protected by a fairly powerful federal law known as the fair debt collection prcactices act.  Many states also have additional protection under state law.  Ohio for example has a consumer protection law that is quite comprehensive and allows debtors to sue misbehaving creditor and receive their attorney's fees plau TRIPLE their damages.  Since I don't know what state your from, let's go over your rights under the FDCPA.  Also, I've included a link below to a pdf version of the act from the FTC website which you can look at for more detailed information.

YOUR RIGHTS UNDER THE FDCPA:

Collection agents may not:

1)  Call before 8 a.m. or after 9 p.m.

2)  Talk to anyone but you (or your attorney, if you have one) about the debt.

3)  Threaten to garnish wages or seize property unless they actually intend to do so. Garnishment is illegal in some states, and in others requires a court order. In many cases, property seizure is not permitted. Check with your state attorney general's office or state consumer protection office to find out what is legal in your state.

4)  Threaten to sue unless they are actually taking legal action. In some states, third-party collection agencies may not sue.

5)  Threaten you with arrest or jail.

6)  Use obscene language.

7)  Annoy or harass you with repeated calls.

8)  Call at work if you have asked them to stop.

9)  Falsely claim to be an attorney, a representative from a credit bureau or a member of law enforcement.

10)  Call you ever again if you have filed written notice in the form of a "cease and desist letter"  with their agency that you do not with to receive phone calls about this particular debt

So here is what you need to do:

Step 1:  If you don't want to get phone calls about this anymore, I suggest that your first step be to mail the agency a "cease and desist letter" as described in #10 above.  If you send a "cease and desist," include your name, address and account number, and tell the company "do not contact me further about this debt." Send the letter certified so that you have proof the company received it. Remember that this move doesn't cancel your debt. The original creditor or the collection agency may decide to sue, or the creditor can simply hire another third-party collector

Step 2:  Keep a diary. If you do take the calls, write everything down: dates, times, names (even if it's the ubiquitous Ms. Smith or Mr. Jones) and what is said. If it's legal in your state, tape the exchange. And if you tell them you're taping the call -- whether you are or not -- they will be more likely to behave.

Step 3:  Now that your debt is with a collection agency, it may be easier for you to negotiate the debt down.  I know you had trouble doing that before, but your creditcard company has likely sold your debt to an agency for pennies on the dollar.  (sometimes arouns .07 for every dollar you owe)  Because of this many agencies are willing to accept 80% some as few as 60% of the debt as re payment.  HOWEVER there are a few things you should know before you do this

A) Get everything in writing before you give them any money.

B)  Make them stipulate that they will not report anything negative to the credit bureaus regarding the debt.

C)  Have your original creditor sign off on the deal. A collection agency could offer to settle that $1,000 credit card bill for just $500. But once they're paid, the original creditor can still come after you for the other $500.

D)   If you negotiate a settlement for less than you owe, you could end up paying taxes on the unpaid portion. But if the unpaid amount is less than $600, a collection agency does not have to report it to the IRS. Make this part of your written agreement.

E)  Always pay with paper checks -- not electronic bank drafts by phone or debit cards. It's to your advantage to have a physical record that you've paid, plus you control exactly what you're paying and when.

F) Be sure to get something in writing when the debt is paid. That way, if it does come up on your credit report, you have something to prove it was paid

G)  If you set up a plan, be sure you make you payments and do not default on the plan that you set up.  The absolute worst thing you can do is begin a payment plan and then not finish paying -- sometimes the collection agency will not give you credit for paying a penny.

H)  Therefore, if you set up a payment plan, be honest with yourself about what you can afford to re-pay each month.

Step 4:  Understand the laws in your state. Garnishment, lawsuits and property seizure are illegal in some places, which gives you a little more leverage to work out a deal. To learn what is and isn't allowed, call your state Attorney General's office or the state consumer protection office.  These people are there to help YOU.  They will be on your side and help you to navigate through the the murky waters of debt collection law, and help you know your rights under state law as well.

Furthermore, time may have run out on the debt. While there is no federal statute of limitations on debts, most states limit the amount of time a creditor has to collect a debt. The deadline varies from state to state, and the folks above should be able to let you know when your statute runs.

There is also a question of which state's rules govern the transaction, yours or the creditor's. That's a very gray area, and you may not get an easy answer from the above, you MIGHT have to consult an actually attorney on this one.

Step 5:  File a complaint. If you suspect that a collection agent has crossed the line, call the FTC and your state's governing office and file complaints. (Yet another reason it's good to keep a written or tape-recorded diary.)

Step 6:  Sue. If a third-party collection agency violates your rights, you can likely sue for actual damages and punitive damages, as well as attorneys' fees and court costs. To find a lawyer who specializes in consumer credit law, contact the National Association of Consumer Advocates (I've included their website below).  Most collectors stay well within the bounds of the law. However, when they don't it's really important for all of us to stand up for ourselves.

So if the debt collectors are calling your firends and neighbors about this debt, then they are likely breaking the law, and you should follow the above steps.  I hope my answer helped you out, and things work out for you.