Icons made by https://www.flaticon.com/authors/freepik from https://www.flaticon.com/
2020 was a tough year for so many people physically, emotionally, and financially. Many Americans are at risk of losing their jobs and their homes. Many are unable to find the funds to pay their bills and, as a result, sink more into debt. Once that happens, the door opens to debt collectors. Some are legitimate, but there are a few who look to take advantage of others who are in dire straits and in desperate situations. To help people become more educated and not fall victim to debt collection scams, Texas Appleseed, a nonprofit organization promoting social and economic justice, has created a toolkit, My Debt Collection Rights in Texas, to inform consumers about debt collection and related scams. The toolkit focuses on four main topics:
Is This Debt Collection Call Real or a Scam?
Users can learn the steps to take to determine whether a debt collection call is real, to gather proof that the debt is, in fact, legitimate, and to understand what debt collectors can and cannot do. The toolkit also explains what to do if the debt collection call scams won’t stop. There is also video about one Texan’s experience with debt collection scammers.
Common Scare Tactics by Debt Collectors
In addition to watching a video documenting how one Texan handled threats from debt collectors, users can learn what to do if they receive harassing phone calls and how they can stop them. The toolkit also discusses how consumers can dispute a debt and provides an example of a letter that the debtor can send to the collector when challenging the debt. There are also some useful tips for dealing with debt collectors.
You Got Sued by a Debt Collector. Now What?
In this section, users will learn what to do if they’ve received notification that they have been sued for a debt that they owe. Steps include responding to the lawsuit and filing an answer within the stated deadline. A sample answer form can be found on the website. There is also information explaining what happens if the debtor fails to respond to the lawsuit and if the court renders a judgment against the debtor. A short video offering some tips is also available for viewing.
This last section explains what it means to be “judgment proof” and discusses whether property and income are exempt from creditors and whether a creditor can take money from a debtor’s paycheck.
In addition to the toolkit available from Texas Appleseed, the Federal Trade Commission has a lot of information about fake and abusive debt collectors, including how to spot them and how to report them.