12 JAX AIR NEWS, NASJACKSONVILLE, Thursday, April 23, 2009 XI. LONG i, Basic debt collection: the process and protections By Lt. Candice Albright Judge Advocate General Corps Photos by Kaylee LaRocque CS1(SW) Ronnie Robinson of the NAS Jax Flight Line Cafe tries to find his trouser size with the help of NAS Jax Navy Exchange (NEX) employee Elisa Punzalan in the new NEX Navy Working Uniform Store located in the warehouse next to the convenience store on Child Street. UNIFORMS: NWU shop now open Unfortunately, debt issues are affecting many Americans and the military is no excep- tion. So it's important to know the basics of debt collection, the laws which regulate the collection indus- try and the consequences of failure to pay lawful debts. You are legally obligated to pay a just debt when you take out a loan, use a credit card, co-sign on a loan, enter into a private agreement with another party for things such as home repair or auto repair, or if you become involved in a myriad of other circum- stances which involve the exchange of money for goods or services. The collection of unsecured debts is most commonly associated with delin- quent credit card payments. As every- one knows, if you do not pay the mini- mum balance on your MasterCard, VISA or other credit card, you are asking for financial trouble. If you do not pay an owed debt, the original creditor will most likely use the services of a debt collection agency to obtain payment. Once this occurs, your credit report reads that the par- ticular account has been "charged off' meaning that your debt is owned by the collection agency. This particular act of a "charge off' is important because you are pro- tected under certain laws depend- ing on who is doing the collecting. The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers against debt col- lectors but, it does not apply to the original creditor. Debt collectors usually begin the collection process with "courtesy" calls. If you receive a collection call, you have the right to be told the name of the creditor and the exact amount you owe. Further, the caller is not allowed to use obscene or threatening language with you. It is also considered harass- ment to contact you at unusual hours (usually defined as before 8 a.m. or after 9 p.m.). Also, under federal law, a debt collector cannot communicate with you at work, once he knows that your employer prohibits such com- munication. Therefore, be sure to inform the collector of this fact when they call. Unfortunately, as previous- ly mentioned, this law does not apply to the original creditor itself. Either at the same time collection calls start or immediately thereaf- ter, a collector is required to provide you written notification of the debt and amount owed. If you are given all the information about the debt and acknowledge that you owe it, then it may be in your best interest to make a settlement offer. In many cases, late fees and other administrative costs are added to the original amount - and can be avoided if a settlement offer is made. If you want to dispute the debt, then you must do so in writing. The collector is required to inform you that you have a right to dispute the debt. To keep this right, you must dis- pute the debt within 30 days of first written notification of the attempt at collection. Within the body of the dispute letter, reference the account number used by the collection agency, your name and to write the follow- ing: (1) if you dispute the entire debt, then write, "I dispute this debt in its entirety" or "This debt is in dispute;" or (2) if you owe part of the debt, but not all of it, then write "I dispute any debt over the amount of X." Once a debt is disputed in writing, you receive certain automatic pro- tections under the FDCPA and the Fair Credit Reporting Act (FCRA). The FDCPA requires that the creditor must validate the disputed debt and See DEBT, Page 1 6 From Page 1 sured, all they have to do is walk in, pick out their items and check out. There is also a team of associates standing by to assist with measurements if needed and help Sailors find their items. "It's really organized and efficient. I've bought every- thing I need in one stop. They are fully stocked with everything I need and the service was excellent," said AWCS(AW) Jim Zobrosky of CV-TSC Mobile Training Team. The rollout is part of a Navy-wide campaign to transition Sailors to the new uniform which will eventually replace utili- ties, wash khakis, coveralls, woodland green and avia- tion green uniforms. The NWU will become the primary working uniform used in all Navy communi- ties and duties. All existing working uniforms will con- tinue to be authorized for wear until December 2010. Fiscal year 2009 cloth- ing replacement allowances have been adjusted to facili- tate purchasing four sets of NWU shirts and trousers by December 2010. 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