Handling Debt Collectors

• Collection agencies use fear to manipulate people into paying debts they may not be able to afford. It is important to know when you should be concerned versus when you should not be.

• A common scare tactic is to represent that the sheriff is on his way to serve legal papers, and you need to pay to stop the sheriff. This representation is usually always false because attorneys do not announce ahead of time when they are serving legal papers.

• Another scare tactic is to threaten arrest or criminal prosecution. Nonpayment of a debt due to lack of income is not a crime, and this sort of threat is always false. One exception might be passing a bad check. Passing a bad check can have criminal penalties, Another exception involves the failure to return leased property from companies such as Rent-A-Center, which can also have criminal penalties.

• Debt collectors who represent payday lenders are among the worst offenders, which is not surprising since payday lending is a form of loan sharking. If you reside in Pennsylvania, and receive a call from someone trying to collect a payday loan you received on-line, be aware that the interest rate on the loan is likely illegal, and the debt you are alleged to owe is likely uncollectible. This type of debt collector may make outlandish threats, but do not be scared. On-line payday lending is illegal in Pennsylvania, so the lender cannot sue to collect.

• The reality is that if the collection agency is not a law firm or is located out of state, there is probably little the debt collector can do to cause you immediate harm. A debt collector can only do harm by suing you. A lawsuit can lead to a judgment, which is a judicial determination that you are liable to pay a debt. A creditor can use a judgment to take your property by judicial process usually with the involvement or assistance of the local sheriff's office. In Pennsylvania, a creditor with a judgment will most likely try to garnish your bank account, if the creditor knows where you bank. Garnishments are awful because they freeze your bank account without warning.

• If the debt collector that is harassing you is not a law firm then you probably do not have to worry about an immediate lawsuit.

• Even if the debt collector is a law firm, you probably do not have to be too worried about being sued if the debt collector is located far away, out of state. The debt collector usually has to be local to sue you.

• If the debt collector that is pursuing you is a local law firm, then greater concern might be warranted because that law firm is in a position to sue you.

• If you are sued, do not ignore it. Ignoring a lawsuit is the worst thing you can do. Go to the court hearing and speak with the creditor's attorney. Tell the attorney how much you can pay, and maybe the attorney will make a settlement with you. Most creditors will negotiate payment terms.

• The best thing to do is get your own attorney to represent you. Debt collection cases can often be successfully defended, especially if you are being sued by a debt buyer rather than the original creditor.

Attorney Robert F. Salvin is always available for a free consultation to discuss a debt collection lawsuit. You should feel free to give him a call. Mr. Salvin has successfully represented debtors in many debt collection lawsuits.