Whenever you borrow money with a loan or credit card, you are technically considered a “debtor”. If the world were perfect, all people would be able to pay their debts on time. Most people will miss a payment at some point in their lives. When your debts get too far behind, you may be sent to collections. When your account is sent to collections, you are protected from unfair or harassing collection practices by the Fair Debt Collection Practices Act. It is essential to know the rights and responsibilities that both you and the debt collection agency have.
The responsibilities of the collection agency
Original creditors or debt collection agencies that purchase your debt are required to treat you fairly. Debt collection agencies are not allowed to contact you before 8 am or after 9 pm. Debt collectors cannot contact you at your work if you ask that they do not. Debt collectors are not allowed to lie about who they are or the debt they believe you owe. The only information a debt collector can ask for from a third party is how to contact you.
Your responsibilities when you owe money
When you owe debt, you also have responsibilities. It is essential that you have a good understanding of the money you owe, and to whom you owe it. A good place to start is asking for a copy of your credit report. Each of the three credit reporting agencies is legally required to give you a free copy of your credit report once a year. You are responsible for informing any debt collectors if you are represented by a lawyer. Talk with debt collection agencies only in writing, so you have a hard record of all the conversations you have.
Rights of the debt collectors
A debt collection agency is hired to collect the debt that they believe you owe. They have the liberty of calling you during reasonable hours. If you have informed them that you have a lawyer, they can contact them about you. If you are unresponsive to their communications, the agency can file a lawsuit.
Your liberties as a debtor
You have the right to complete and accurate information about the money you owe . You are entitled to know which debt the agency is contacting you about. In addition, you have the right to dispute any debt that an agency is contacting you about. Verbally or in writing, you can dispute any debt you owe within 30 days. The debt collector then must verify, at a minimum, the amount they believe you owe along with the name and address of the original creditor. Falling behind on any debt can be a very frustrating situation. If that happens, taking an opportunity to breathe and take stock of your situation will help you maintain your balance. The legal system provides rights and responsibilities for both you and the collection agency pursuing you.