Frugal Corner: Debt collectors have boundaries

Debt collectors long have been a subject of complaints to regulators.

In 2007, a fifth of all complaints filed with the Federal Trade Commission involved debt collection – more than 70,000 complaints. Now, as more people struggle to keep up with the bills, debt collection and concerns about it seem likely to increase.

A recent AARP survey of Washington residents found nearly a third said they were finding it hard to afford necessities; a fifth said they were struggling to pay utility bills and rent or mortgage.

Congress passed the Fair Debt Collection Practices Act in 2006 to try to put a stop to abusive and deceptive practices in that industry. Still, the industry draws more FTC complaints than any other, according to the Baltimore Sun. Among the top complaints: collectors demanding more than they’re owed; harassing consumers through repeated calls and obscene language; calling early in the morning or late at night; and even threatening violence.

Most debt-collection agencies operate within the law, of course. But you should know your rights. In part, collectors cannot:

•Call before 8 a.m. or after 9 p.m. without permission.

•Contact you instead of your attorney, if you’re represented by one.

•Contact you at work if they know your employer doesn’t want such calls.

•Harass you by using profanities, repeatedly call to annoy you or threaten violence.

•Lie about the size of your debt or threaten legal action if they have no intention of doing so.

Within days of first contacting you, a debt-collection agency must send written notice of a debt. If you reply in writing within 30 days saying you don’t owe the money, the agency can’t contact you again without sending proof of your debt.

For information, go to www.ftc.gov.

Protect yourself

A recent survey by the online job site CareerBuilder.com found that about a quarter of workers polled said they were concerned about losing their jobs.

Here are some suggestions from the site to “recession-proof” your job:

•Seek more responsibility. Volunteer to take on different duties and show that you can multitask. Get involved in long-term projects.

•Be a team player. Show that you can work with others by sharing information and resources to benefit the work of colleagues.

•Offer ideas. Suggest proposals that can save your organization money or generate new revenue.

•Toot your own horn. Don’t be shy about sharing your accomplishments and contributions to the company. An e-mail updating supervisors of projects or goals can be a good way to do that. Make sure you also give kudos to others involved in the project.

•Stay positive. Try to remain focused on work, instead of rumors.