When you fall behind on payments, you start getting phone calls and letters. That's the way it works and if you owe the money you can't pretend that you don't. But there are limitations on what a debt collector can do and what method they can use to contact you. You can stop harassment or illegal methods to collect debts.

There is a law called the Fair Debt Collection Practices Act and it protects you from abusive or harassing practices from third party debt collection agencies. Debt Collection agencies often buy debt from creditors. They usually pay pennies on the dollar and then start trying to collect the original amount and then some. There are also Debt Collectors who work on a commission basis, which means they get a portion of whatever they collect.

That's a big part of the debt collection problems, these "bad debts" are sold and marketed and even when they are incorrect or false, they appear again and again. That's why it is so important to keep documentation when any debt is settled or incorrect. You might need that information again.

Both Federal and State laws prohibit many annoying and abusive collection methods. Your state may have additional consumer protection laws and you can find out by doing a search with your state and consumer protection laws. It's important to know your rights and exercise them when necessary.

Usually the first point of contact will be a letter or a phone call from the debt collector. It's important to obtain some basic information about the debt and the collector so don't ignore or hang up. Here's the basic information you want to know (and write down for future reference):

-Name of the creditor

-Amount of the initial debt

-An explanation of any penalties or interest

-An explanation of your rights

-Contact information (name and phone number) of the caller

If the first contact is by phone, the debt collector must provide this information in a letter within 5 days of the phone call. If this debt is incorrect or has already been resolved you need to document all the details and mail to both the collection agency and the original creditor.

If the debt is real, you still have options on stopping the collection agency. Here are the Federal stipulations; your state may have additional rules.

-Collection agencies are prohibited from calling you between 9:00 PM and 8:00 AM

-No abusive or threatening language can be used

-If you don't want to be contacted again, write a letter to the agency and it must stop

(they can include one more letter)

-If you have a lawyer write the letter, the agency must then communicate only with them

If the debt collector or agency does not abide by these rules you can take legal action against them. But make sure you have the documented proof. You can also check with local free legal services. Many will represent you and take the case on for no charge to protect your rights.

If there is a valid debt, the collection process does not stop when you stop the harassment type collection attempts. The collection agency can take you to court and if they win a judgment, then they have the ability to place liens on your personal property (not all property – check local laws) and even garnish wages.

The best bet is to come to some type of terms to repay the debt. Payment plans are usually an option that both parties can agree to if necessary. Don't ignore the debt since the creditor or now the debt collection agency does have a right to pursue this in court.

Debt collectors cannot harass or use illegal or abusive tactics. But you still need to deal with the debt if it is a legitimate claim. You can stop the harassment but you should still address the debt issue and try to resolve it.