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Debt Collections FAQ From the Nolo.com Debt & Bankruptcy Center What you need to know about dealing with bill collectors. If you're struggling with debt and can't pay your bills on time, you'll soon hear from a debt collector. If you find this stressful, it may help to know what a debt collector can and cannot do, both before and after it sues you. Collection agencies have been calling me all hours of the day and night. Can I get them to stop contacting me? It's against the law for a bill collector who works for a collection agency (as opposed to working in the collections department of the creditor itself) to call you at an unreasonable time. The law presumes that calls before 8 am or after 9 pm are unreasonable. But other hours may be unreasonable too, such as daytime hours for a person who works nights. The law, the federal Fair Debt Collection Practices Act (FDCPA), also bars collectors from calling you at work, harassing you, using abusive language, making false or misleading statements, adding unauthorized charges and many other practices. Under the FDCPA, you can demand that the collection agency stop contacting you, except to tell you that collection efforts have ended or that the creditor or collection agency will sue you. You must put your request in writing. I'm getting calls from the collections department of a local merchant I did business with. Can I tell that collector to stop contacting me? No. The FDCPA applies only to bill collectors who work for collection agencies. While many states have laws prohibiting all debt collectors -- including those working for the creditor itself -- from harassing, abusing or threatening you, these laws don't give you the right to demand that the collector stop contacting you. There is one exception: Residents of New York City can use a local consumer protection law to write any bill collector and say "stop contacting me." A bill collector insisted that I wire the money I owe through Western Union. Am I required to do so? No, and it could add more money to your debt if you did do it. Many collectors, especially when a debt is more than 90-days past due, will suggest several "urgency payment" options, including: Sending money by express or overnight mail. This will add at least $10 to your bill; a first class stamp is fine. Wiring money through Western Union's Quick Collect or American Express' Moneygram. This is another $10 waste. Putting your payment on a credit card not charged to its maximum. You'll never get out of debt if you do this. Can a collection agency add interest to my debt? Yes. The FDCPA allows a collector to add interest if your original agreement calls for the addition of interest during collection proceedings or the addition of such interest is allowed under state law. Every state authorizes the collection of such interest. A collection agency sued me and won. What collection measures can it now take against me? Before obtaining a court judgment, a bill collector generally has only one way of getting paid: demand payment. This is done with calls and letters. However, once the collector (or creditor) sues you and gets a judgment, the law allows it to take further steps to collect the debt. If you have a job, the collector may try to garnish up to 25% of your net wages. The collector may also try to seize bank or other deposit accounts you have. If you own real property, the collector may record a lien against it, which will have to be paid when you sell or refinance your property. Even if you're not currently working or have no property, the judgment won't disappear. Depending on the state, court judgments can last up to 20 years, and in many states, can be renewed for years beyond that. Click here for related information and products from Nolo.com. © 2002 Nolo.com.