In these tough times, the debt collections industry is booming.
As more consumers are falling behind on their bills, the collections industry is trying harder than ever to collect that debt.
According to the Federal Trade Commission, more complaints are lodged against the debt collection industry than any other.
And they're reportedly using technology like social networking sites or cell phone texting to get you to pay up.
Experts say we're just beginning to see the tip of the iceberg.
There are some things you need to know to protect yourself.
First, you have rights.
Debt collectors must identify themselves.
They can't harass you and they can't talk about your debt to anyone but you or your attorney.
You shouldn't be getting phone calls before 8:00 a.m. or after 9:00 p.m.
They can't threaten to sue you if they don't have any intention of doing so.
And, they can't misrepresent the amount you owe.
There's a limit to how long collectors can legally collect your debt.
Generally this limit, called the statue of limitations, is three to six years.
Check in with your state attorney general to see what laws apply in your state.
Don't file bankruptcy just to get creditors to stop calling you.
It's expensive and unnecessary. Instead, write a letter to the debt collector and send it certified mail and pay for a return receipt so you know the collector received it.
