Post-holiday debt challenges

  • Published
  • By Airman Elena Stofle
  • 14th Flying Training Wing Staff Judge Advocate
COLUMBUS, Miss. -- --  Tis the season to discover that you've maxed out your credit card! Now that the holiday season is over, many people are feeling the after-effects of being so generous. If you are one of the many people in credit card debt, there are many resources available to you. In addition, you don't have to fear debt collectors. There are laws in place to ensure your privacy and peace of mind.

After the initial shock settles in, and people realize they owe more than they thought, many find that a credit counseling agency can offer a solution, which is usually in the form of a Debt Management Plan (DMP). When searching for a credit counseling company, you should consider a non-profit credit counseling service first. Non-profit credit counseling services are required by law to educate and counsel you, as well as to hire qualified and trained employees to help you.

As with all good things, there are those services out there that may not be looking out for your best interest. When choosing a company to rely on, steer away from companies that:

· Charge a high upfront or monthly fee.
· Charge previously undisclosed fees.
· Misrepresent their non-profit status.
· Offer little to no education and counseling.
· Are being investigated or prosecuted by the FTC.
· Pressure you to make "voluntary contributions".
· Demand you make payments to them before your creditors have accepted you into the program.

To protect yourself from fraudulent companies, you'll need to contact your creditors to ensure that they have accepted the program before you start sending payments to your DMP. One important thing to remember is that no matter what agency you use, your creditors should receive 100 percent of your payment. Also, be sure to contact your DMP if your bills are not being paid properly. Contact your DMP and your creditors in advance if you will not be able to make a complete payment on time.

One of the scariest parts of being in debt is the debt collectors. They might contact you in person, by mail, telephone, telegram, or by fax. They may also contact third parties, but only as a means to get your contact information, and not if they know (or have reason to know) that you have an attorney. However, keep in mind that when contacting you, creditors cannot:

· Contact you before 8 a.m. or after 9 p.m., unless you agree.
· Use a false name.
· Use the telephone to abuse, harass, or annoy you.
· Use obscene language.
· Make violent threats of any kind.
· Use deception to make you accept collect calls or pay for telegrams.
· Contact you by postcard.
· Divulge to other people anything regarding your debt.
· Contact other people to locate you if you have an attorney.
· Contact other people more than once unless they agree.

As part of the Fair Debt Practices Collection Act, there are additional limitations on what creditors can do that they don't want their people to know about. When collecting, creditors cannot:

· Collect and amount greater than what is owed.
· Deposit a post-dated check prematurely.
· Give false credit information about you to anyone.
· Send you a form that appears to be from a court or the government agency it's not.
· Apply a payment to any debt you believe you don't owe.
· Make false statements, such as stating that you'll be arrested.

Debt can be a scary thing, but from minor to major debt, there are ways to fix your situation. You can seek help from the Airman Family Readiness Center. The AFRC provides a weekly class called Budgeting Basics on Wednesdays at 11 a.m. along with various workshops through out the year. You can contact the AFRC at 434-2855. For legal assistance, you can contact the Columbus AFB Legal Office at 434-7030.