AOL lies to their customers and has a policy of refusing to escalate to supervisors:

If you refuse to pay your bill, AOL will threaten to ruin your credit (with AOL):

AOL's abusive relationship with its "members" is not new, but it is surprising how enthusiastically they have embraced the standard lies and deceit peddled by the debt collection industry. According to our tipster, the guide is from 2006, but the tactics and policies remain unchanged.

The only way to fight back against scummy collectors is to know your rights under the Fair Debt Collection Practices Act.

Read AOL's full collections guide, complete with other despicable practices, here.

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• 40.3%, 27,929 consumers, complained of debt collectors attempting to collect more than they were owed
• 3.4%, 2,387 consumers, complained that collectors were attempting to collect interest, fees, or expenses that were not owed, such as collection fees, late fees and court costs
• 21.2% or 14,656 consumers complained of harassment from repeated or continuous calls
• 22.1% or 15,314 consumers complained of debt collectors making calls to employers, friends and family repeatedly in an attempt to allegedly gather information to assist them in collecting the debt
• 11.5% of the FDCPA complaints or 7,967 consumers complained of being harassed with collectors using obscene, profane or otherwise abusive language
• 11.4% or 7,913 consumers complained that they were threatened with a lawsuit or some other legal action that the debt collector could not or did not intend to take, such as seizure of property or arrest.

FTC publishes its Annual Report on the Fair Debt Collection Practices Act [Alabama Consumer Law Blog]
Federal Trade Commission Annual Report 2007: Fair Debt Collection Practices Act (PDF) [FTC]
(Photo: scoobymoo)

Last Monday though, Procter received a call from Lt. Harold Kaufman from the Midlothian police.

Procter said Kaufman told her if she didn't pay, she could be subject to criminal charges.

"He didn't say what I could be charged with if I didn't pay. But I was so scared at the time, I didn't think to ask," she said.

Procter said Kaufman instructed her to get a cashier's check and deliver it to him at the police department and he would take it to Merlin's.

But after she got off the phone, Procter said she started to think something wasn't right.

So she called the Cook County State's Attorney's office to get their input. She said she was told she should go and make payment directly to Merlin's.

Procter has since paid her bill in full, but still resents the treatment from police and wonders if others have received similar calls.

Lieutenant Kaufman politely declined to defend his actions, saying: "I'm not going to comment any further for a ridiculous newspaper article."

Police as debt collectors? [The Star via Liz Weston and The Alabama Consumer Law Blog]
(Photo: Impactmedia)

Might as well get into it. If I don't respond to your comment, that may be because you asked about criminal law, intellectual property, or something that does not fall within the (my) definition of consumer law. I will save those for another day. (For the questions about checking receipts, I think these posts had some pretty good answers.)

FunPaul asks:

I recently received a collection notice in the mail that said, contact us within 5 days or, um well, we'll send you more letters.

The debt isn't mine. The last name on the letter is not my last name, it's close though. . . . Do you have any advice for people who receive collection notices? I assume that there are a lot of people who don't know what to do when they receive a scary sounding letter and do things that could cost them money.

As Ben said, I do have a soft spot for debt collectors. Or the opposite. Actually, my office phone number apparently used to belong to someone who owes a lot of people money, so this happens to me all the time. The message is usually something like "This is _____ calling about an important business matter. Please call 1-800-DEBT-DUE and reference number XXXXXXX."

I am in Minnesota, so I can record phone calls. I use Skype to call, because the Pamela add-on makes recording easy. And I call back. I haven't had any trouble getting them to stop calling, but part of that is because I introduce myself like this: "HI, this is Sam Glover, I am a consumer attorney and I sue debt collectors. The person you are looking for is not at this phone number; please do not call again." (You can't lie about being an attorney, however, so don't copy this verbatim. Say you know your rights under the FDCPA or something.)

If they didn't stop calling, though, I would have a good record that I asked, and that they didn't comply. If you can't record without notifying the other party or getting their consent, tell them that you are recording. You'll have a record that they consented if it comes up.

Also, take careful notes of the time you were called, the person who called, what they said, what number they gave you, etc. Record voicemail messages, as well. You may never need them, but if you start getting harassed, all your careful records will come in handy.

idledebonair asked about the length of time a negative credit information can stay on your credit report.

First, this has nothing to do with whether or not you still owe the debt or whether the debt remains within the statute of limitations. Generally, then, the answer is seven years. You can find this in the FCRA (PDF link), section 605. There are two notable exceptions:

1) Credit transactions where the principal amount is—or can reasonably be expected to be (in the case of credit lines, for example)—$150,000 or more.
2) under the Higher Education Act of 1965, the seven years starts over every time you make a payment on an FFEL loan, and does not apply to Perkins loans.

In other words, it depends on the type of student loan, but you will live with Perkins loans until you pay them in full, and you will live with FFEL loans for at least seven years after your last payment, and there are a couple of other provisos to how long FFEL loans may be reported.

That's all for now. Keep the comments coming. — SAM GLOVER

Here's a delightful snip:

1692d. Harassment or abuse...the following conduct is a violation of this section:

(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number

For your viewing pleasure, after the jump are seven pages of creamy Federal law goodness on debt collection. Enjoy at your own peril.

"Federal "Fair Debt Collection Practices Act" from Title 15 of the United States Code

1692c. Communication in connection with debt collection

(c) Ceasing communication

If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except—

(1) to advise the consumer that the debt collector's further efforts are being terminated;

(2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or

(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.

1692d. Harassment or abuse

A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.

(2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.

(3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of diction 1681a(f) or 1681b(3) of this title.

(4) The advertisement for sale of any debt to coerce payment of the debt.

(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.

(6) Except as provided insection 1692b of this title, the placement of telephone calls without meaningful disclosure of the caller's identity.

1692e. False or misleading representations

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.

(2) The false representation of—

(A) the character, amount, or legal status of any debt; or

(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.

(3) The false representation or implication that any individual is an attorney or that any communication is from an attorney.

(4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action.

(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.

(6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to—

(A) lose any claim or defense to payment of the debt; or

(B) become subject to any practice prohibited by this subchapter.

(7) The false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer.

(8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.

(9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.

(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.

(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a formal pleading made in connection with a legal action.

(12) The false representation or implication that accounts have been turned over to innocent purchasers for value.

(13) The false representation or implication that documents are legal process.

(14) The use of any business, company, or organization name other than the true name of the debt collector's business, company, or organization.

(15) The false representation or implication that documents are not legal process forms or do not require action by the consumer.

(16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 1681a(f) of this title.

1692f. Unfair practices

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

(2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit.

(3) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution.

(4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument.

(5) Causing charges to be made to any person for communications by concealment of the true purpose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees.

(6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if—

(A) there is no present right to possession of the property claimed as collateral through an enforceable security interest;

(B) there is no present intention to take possession of the property; or

(C) the property is exempt by law from such dispossession or disablement.

(7) Communicating with a consumer regarding a debt by post card.

(8) Using any language or symbol, other than the debt collector's address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business.

1692g. Validation of debts

(a) Notice of debt; contents

Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing—

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) Disputed debts

If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) of this section that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

(c) Admission of liability

The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.: