Handling Phone Calls With A Debt Collector

The Consumer Financial Protection Bureau estimates that over 77 million people in the U.S. have at least one debt in the collection phase. For these 77 million people it is quite possible that a debt collector may be contacting them regarding the debt. But even if you are not one of those 77 million people, you may still be contacted by a debt collector. This is because records can become mixed up, data entered wrong, or maybe even you have the same name as the actual debtor. Whatever the reason, debt collectors have been known to contact people who don’t even have a debt due.

So whether you have a debt in collection or not, you should be aware of best practices when a debt collector contacts you. This blog takes a look things you can do to protect your interests when on the phone with a debt collector.

In Colorado, the law says that a debt collector who is calling you must identify himself within 60 seconds of making contact with you. While it is difficult to ever know whom you are speaking with, once you realize you are talking to a debt collector, keep track of whether the debt collector identified himself and how long it took to do so.

When you’re on the phone with the debt collector, be firm but polite and try not to give them more information than necessary. While you should never lie, it is not illegal for you to keep your financial, employment and other information private. Part of the debt collector’s job is to find out how much they can get you to repay. Keeping your information protected and confidential may give you leverage when it’s time to negotiate a repayment amount.

Don’t be afraid to ask the debt collector questions. Knowledge is power, and the more you know about what they know can help you. Also, asking questions can help you keep better notes of the conversation with debt collector. For example, if a debt collector were to threaten you with a lawsuit it would be good to ask him when and where he plans on doing so. If the debt collector then back peddles with no good answer, it might mean he is threatening you with an action which he doesn’t intend to follow through on – in some cases it’s illegal for the debt collector to threaten something he doesn’t intend to do.

In discussing the debt being collected, be very cautious in committing yourself to any plan or in even acknowledging any debt. You have a right to request verification from the debt collector, and in almost all cases you should make the written request necessary for the debt collector to verify the debt. And there is no need to immediately commit to a payment plan over the phone – take the time to consider the plan thoughtfully and if possible ask a legal or financial expert.

No matter what, take detailed notes during and after your phone call. Not only is it important to keep track of the facts the debt collector shared, it is also important for you to document any false or illegal things the debt collector might have stated. Having a good record will help you in the event you file a complaint or bring your own legal action against the debt collector. At a minimum, be sure to note:

  • The name of the person on the other end of the line
  • The company he or she works for
  • The date and time of the phone call – and how long it lasted
  • The things discussed like timelines, debt amounts, or any other notable comments (such as threats or abusive language)

Armed with the above information you should feel competent to handle a discussion with a debt collector.

Handling Phone Calls With A Debt Collector

So whether you have a debt in collection or not, you should be aware of best practices when a debt collector contacts you. This blog takes a look things you can do to protect your interests when on the phone with a debt collector.

In Colorado, the law says that a debt collector who is calling you must identify himself within 60 seconds of making contact with you. While it is difficult to ever know whom you are speaking with, once you realize you are talking to a debt collector, keep track of whether the debt collector identified himself and how long it took to do so.

When you’re on the phone with the debt collector, be firm but polite and try not to give them more information than necessary. While you should never lie, it is not illegal for you to keep your financial, employment and other information private. Part of the debt collector’s job is to find out how much they can get you to repay. Keeping your information protected and confidential may give you leverage when it’s time to negotiate a repayment amount.

Don’t be afraid to ask the debt collector questions. Knowledge is power, and the more you know about what they know can help you. Also, asking questions can help you keep better notes of the conversation with debt collector. For example, if a debt collector were to threaten you with a lawsuit it would be good to ask him when and where he plans on doing so. If the debt collector then back peddles with no good answer, it might mean he is threatening you with an action which he doesn’t intend to follow through on – in some cases it’s illegal for the debt collector to threaten something he doesn’t intend to do.

In discussing the debt being collected, be very cautious in committing yourself to any plan or in even acknowledging any debt. You have a right to request verification from the debt collector, and in almost all cases you should make the written request necessary for the debt collector to verify the debt. And there is no need to immediately commit to a payment plan over the phone – take the time to consider the plan thoughtfully and if possible ask a legal or financial expert.

No matter what, take detailed notes during and after your phone call. Not only is it important to keep track of the facts the debt collector shared, it is also important for you to document any false or illegal things the debt collector might have stated. Having a good record will help you in the event you file a complaint or bring your own legal action against the debt collector. At a minimum, be sure to note:

  • The name of the person on the other end of the line
  • The company he or she works for
  • The date and time of the phone call – and how long it lasted
  • The things discussed like timelines, debt amounts, or any other notable comments (such as threats or abusive language)

Armed with the above information you should feel competent to handle a discussion with a debt collector.

Using Social Media to Improve the Consumer Complaint Process

Our social media driven culture is used to posting, sharing, Tweeting, chatting, pinning, blogging, and Skyping – with friends and strangers alike. But, in the past decade, businesses have emerged as a new player in the social media hierarchy. This has given consumers new tools for reaching out to businesses, and has created a whole new type of online customer service.

Consider an airline passenger who, on a long flight, was frustrated when the television screen in front of him was not working. From his phone, he wrote a short Twitter message to JetBlue, the airline on which he was flying, to describe the problem. Before his plane landed, representatives from JetBlue issued a personal response, apologizing for the problem and offering him a $15 credit on his next flight.

This story serves as a great example of the power of social media to reach companies. There are several advantages to this new system. First, social media platforms provide a forum where consumers and businesses can correspond directly. Neither party has to wait until the other is available, which means no waiting on hold and no missed callbacks. Not only does this make the process more convenient for consumers, it benefits businesses by simplifying the complaint resolution process and saving time. Noting these benefits, many companies have started training customer service representatives to respond to social media complaints.

Second, the consumer’s compliant — and the company’s response — are visible to millions of internet users. This creates a virtual handbook of consumer Q&A, where consumers can learn from the resolutions provided for prior customers. More importantly, it also puts pressure on companies to respond fairly to customer concerns. Observers can also see the time that elapsed between complaint and resolution. This can help customers get an idea of how long the process should take, and keeps the business accountable to its consumers for its response time. Companies who do not help their consumers in a fair and timely way risk offending their customer base.

Consumers can use this new approach with relative ease. Twitter and Facebook, the two most common social media forums for customer complaints, offer free accounts. To sign up, all the user needs to provide is a name, birthday, and an email address. After joining, consumers can use the search bar to find the company they wish to speak to, and then type a simple message. The next step is to wait, and follow any instructions that the company provides in its reply. After a few days, if no one responds, the consumer should try other contact methods like email or telephone.

Just because the process is easy does not mean it is foolproof. In fact, some consumers who have posted complaints on social media have later been sued by the company for harassment, defamation, or libel. MyConsumerTips already has a blog (link here) describing how to avoid those lawsuits, but the key takeaway is: use good judgement. Don’t lie, don’t exaggerate, and don’t be malicious. For serious complaints, the consumer may consider contacting the state attorney general’s office or the Consumer Financial Protection Bureau instead.

There are some other drawbacks to social media complaints. First, a response is not guaranteed, and it may not come in the timeline that you expect. Second, social media is a bad forum for some types of questions. Imagine Tweeting to Ikea for help putting a bookcase together. The conversation might take hundreds of back-and-forth messages, which would overrun the company’s Twitter page.

Questions which require personal information are also bad for social media. Imagine posting a question on your bank’s Facebook page, asking whether your recent foreclosure has impacted your line of credit. Not only have you broadcast your recent foreclosure to millions of strangers, the bank will probably need more information (at a minimum, your account number) in order to fully answer your question. You should never give out personal information on social media sites.

Noting the obvious benefits of social media customer service, some industry analysts believe that it will displace email and telephone as the primary means for consumer complaints. Whether or not that occurs, consumers who follow the tips outlined above may find that reaching out via social media is faster, easier, and more successful than other means. Happy Tweeting!

Handling Phone Calls With A Debt Collector

The Consumer Financial Protection Bureau estimates that over 77 million people in the U.S. have at least one debt in the collection phase. For these 77 million people it is quite possible that a debt collector may be contacting them regarding the debt. But even if you are not one of those 77 million people, you may still be contacted by a debt collector. This is because records can become mixed up, data entered wrong, or maybe even you have the same name as the actual debtor. Whatever the reason, debt collectors have been known to contact people who don’t even have a debt due.

So whether you have a debt in collection or not, you should be aware of best practices when a debt collector contacts you. This blog takes a look things you can do to protect your interests when on the phone with a debt collector.

In Colorado, the law says that a debt collector who is calling you must identify himself within 60 seconds of making contact with you. While it is difficult to ever know whom you are speaking with, once you realize you are talking to a debt collector, keep track of whether the debt collector identified himself and how long it took to do so.

When you’re on the phone with the debt collector, be firm but polite and try not to give them more information than necessary. While you should never lie, it is not illegal for you to keep your financial, employment and other information private. Part of the debt collector’s job is to find out how much they can get you to repay. Keeping your information protected and confidential may give you leverage when it’s time to negotiate a repayment amount.

Don’t be afraid to ask the debt collector questions. Knowledge is power, and the more you know about what they know can help you. Also, asking questions can help you keep better notes of the conversation with debt collector. For example, if a debt collector were to threaten you with a lawsuit it would be good to ask him when and where he plans on doing so. If the debt collector then back peddles with no good answer, it might mean he is threatening you with an action which he doesn’t intend to follow through on – in some cases it’s illegal for the debt collector to threaten something he doesn’t intend to do.

In discussing the debt being collected, be very cautious in committing yourself to any plan or in even acknowledging any debt. You have a right to request verification from the debt collector, and in almost all cases you should make the written request necessary for the debt collector to verify the debt. And there is no need to immediately commit to a payment plan over the phone – take the time to consider the plan thoughtfully and if possible ask a legal or financial expert.

No matter what, take detailed notes during and after your phone call. Not only is it important to keep track of the facts the debt collector shared, it is also important for you to document any false or illegal things the debt collector might have stated. Having a good record will help you in the event you file a complaint or bring your own legal action against the debt collector. At a minimum, be sure to note:

  • The name of the person on the other end of the line
  • The company he or she works for
  • The date and time of the phone call – and how long it lasted
  • The things discussed like timelines, debt amounts, or any other notable comments (such as threats or abusive language)

Armed with the above information you should feel competent to handle a discussion with a debt collector.

A Colorado Tenant’s Guide to the Warranty of Habitability

What is the warranty of habitability?

A guarantee in every residential lease that the apartment or home is fit for people to live in. Colo. Rev. Stat. § 38-12-503(1).

 

What kind of conditions would make an apartment or home “uninhabitable” under the law?

The statute lists 11 specific examples of uninhabitable conditions. If an apartment or home lacks one of the following characteristics, it could be considered uninhabitable.

  • 1) Waterproofing and weather protection of the roof, exterior walls, windows, or doors;
  • 2) Plumbing and gas facilities;
  • 3) Running water and reasonable amounts of hot water;
  • 4) Functioning heat correctly installed and in good working order;
  • 5) Electrical lighting correctly installed and in good working order;
  • 6) Common areas that are reasonably clean;
  • 7) Extermination of rodents or vermin;
  • 8) Adequate garbage receptacles;
  • 9) Floors, stairways, and railings in good repair;
  • 10) Locks on exterior doors and locks or security devices on windows; and
  • 11) Compliance with building, housing, and health codes, which, if violated, would cause the home to be dangerous to the tenant

This is not an exclusive list. Other conditions that make an apartment or home unsuitable to live in could count as an uninhabitable condition. Colo. Rev. Stat. § 38-12-505.

 

Does the tenant have to maintain the property in any way?

  • First, a tenant must fulfill maintenance duties agreed to in the lease, with some exceptions.
  • Second, a tenant must maintain the premises in a clean and safe manner which means:
    • complying with building, health, and housing codes;
    • keeping the inside of the apartment or home clean and sanitary;
    • disposing of garbage in a sanitary manner;
    • using utilities, such as heat and air-conditioning, in a reasonable manner;
    • not disturbing the neighbors peaceful enjoyment of their apartment or home; and
    • notifying the landlord if the apartment or home is uninhabitable.
  • And, of course, a tenant should not destroy or damage any part of the apartment or home.

Colo. Rev. Stat. § 38-12-504.

 

Is an “uninhabitable” condition enough to hold the landlord responsible under the law?

No. There are three requirements that must be met before a tenant can hold a landlord responsible under the law:

  • 1) The premises are uninhabitable (one of the conditions listed above or something similar);
  • 2) The condition is “materially dangerous or hazardous” to the tenant; and
  • 3) The tenant gave written notice of the condition to the landlord and the landlord failed to fix the problem in a reasonable amount of time Colo. Rev. Stat. § 38-12-503(2)(a)-(c).

If these three requirements are satisfied, the landlord has “breached the warranty of habitability.” If there is an uninhabitable condition in your home, and you feel that the condition is dangerous or hazardous to you, make sure that you give your landlord written notice of that condition. You can find a sample letter here.

 

What if the tenant caused the uninhabitable condition?

When damage to the property is caused by the tenant or the tenant’s guest, the landlord has not breached the warranty of habitability. However, the landlord can still be responsible under the warranty of habitability if the tenant is a victim of domestic violence or abuse, the damage was a result of that violence, and the tenant gave the landlord written documentation of the domestic violence or abuse. Colo. Rev. Stat. § 38-12-503(4).

 

What remedies are available to tenants?

There are several remedies available to tenants, but some of the rules, such when the tenant can seek each remedy, are complicated. Tenants should read through the statute before choosing to pursue one remedy over another. The remedies include:

  • 1) Terminating the lease early;
  • 2) A court order requiring the landlord to repair the problem (this is called injunctive relief);
  • 3) Damages (such as rent reduction and other expenses); and
  • 4) Attorney fees and costs in some circumstances.

Colo. Rev. Stat. § 38-12-507.

 

Are there any exceptions?

Yes, there are exceptions. Typical residential leases covering apartments or houses are covered by the warranty of habitability. However, the warranty of habitability does not apply to residences at public or private institutions, occupancy in a hotel or motel less than 30 days, or occupancy in a yurt or hut, among many other exceptions. If you are wondering if you fall under an exception, check this list.   Colo. Rev. Stat. § 38-12-511.