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The average American carries $8,562 in credit card debt. Naturally, companies are eager to collect (and really, who can blame them?). Still, there are limits to how far they can go. The National Consumer Law Center explains that laws exist "to protect consumers from debt collection and harassment." According to the site, debt collectors can do only three things legally: "1) Stop doing business with the consumer, 2) Report a default to the credit bureau, 3) Sue the consumer in court." OK, so what about all the annoying (and potentially embarrassing) phone calls? According to this law
firm, debt collectors must stop calling you if you ask them to. At that point, the only action a collector can then take is to send a final letter stating that they will stop contacting you, and/or that "the debt may or will be collected by legal or court action, which can have consequences." Of course, just because you put a stop to the phone calls doesn't mean your debt is going away. If you feel creditors are violating the rules (for example, calling you late at night), consider contacting the Federal Trade Commission. Also, consider sticking to a budget.
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