The majority of calls I receive in a day are from my clients (or potential clients) who are receiving calls from collection agencies. These collectors can be relentless and cruel, sometimes calling 10-15 times per day. The collectors will call them at work or even go so far as to call family and friends in an attempt to embarrass and intimidate. They will tell my clients that if they do not pay, they will garnish their wages, put a lien on their home, take their car or even put them in jail.

While the only real way to stop harassment from creditors is to retain an attorney and either pursue FDCPA violations against the collection agency, or ultimately file bankruptcy, there are some things you should know about what exactly a collection agency can do to you and how the collection process really works.

When you fall behind on your bills, whether they are credit cards, medical bills or utilities, that company will begin to call you in an attempt to get you to pay. They will ask you personal questions about your financial situation and why you are not paying. They will often offer payment arrangements to bring the account current. If the arrangements are something you can afford then great…start making payments. Often, however, the payment options are not feasible and you are unable to pay what they require.

After a few months, and several phone calls later, that company will eventually turn you over to a collection agency. Collection agencies are governed by the FDCPA and there are restrictions on what they can do, and how far they can go, in an attempt to collect a debt from you. (The FDCPA is very complicated so the information provided herein is just a generally summary and in no way intended to encompass the entire Act.) Collection agencies, again, can be relentless in their attempt to get you to pay. Most collectors work on commission, so if they can scare you into paying, they will ultimately make more money.

One of the scariest things they will tell you is that if you do not pay, they will have you put in jail. This is NOT true. While you can be put in jail for criminal acts (i.e. passing bad checks, not paying child support, etc), there is no such thing as a “debtor’s prison” for not paying your medical bills or credit card bills. You will NOT go to jail if you do not pay your car payment or your utilities.

The second thing that terrifies my clients is that their wages will be garnished. Yes, your wages can be garnished for not paying your credit cards HOWEVER, the creditor must first obtain a court order permitting them to do so. This means that they must first file a lawsuit against you, obtain a judgment and then get permission to garnish. They cannot just decide to garnish your wages tomorrow because you did not pay your bill today.

While collection calls can be scary, know your rights and your options. Call our office today at 937-436-2606 for a free consultation with one of our attorneys and we will help you deal with your creditor calls while reviewing your financial options so that you can get out of debt once and for all.