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You are technically considered a debtor any time you borrow money. We would all be able to pay our debts completely if the world were perfect. Most people will fall behind at payments at some point. A collection agency may purchase your debt if your account falls too far behind. When you have accounts in collections, the debt collection agencies are prevented by the Fair Debt Collection Practices Act from treating you badly. Educate yourself about the rights and responsibilities that both you and the debt collection agency have.
Responsibilities of the collection agency
When an agency purchases or otherwise decides to pursue your debt, it is their responsibility to act fairly. This means that agencies cannot contact you before 8 am and after 9 pm. Collection agencies cannot contact you at your work if you ask that they do not. Collectors are not allowed to misrepresent themselves or the debt that you owe. They are also not allowed to discuss your debt with anyone other than your spouse and lawyer.
Your responsibilities as a debtor
When you owe debt, you also have responsibilities. The most important thing is to know what money you owe and to whom. 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 copy of your credit report each year. You are responsible for informing any debt collectors if you are represented by an attorney. Talk with debt collection agencies only in writing, so you have a hard record of all the conversations you have.
Rights of the debt collection agencies
A debt collection agency is paid to help you pay the debt they believe you owe. They are allowed to call you during reasonable hours. If you have a lawyer, they have the right to talk to them about your debt. If you are unresponsive to their communications, the agency is allowed file a lawsuit.
Your liberties as a debtor
When you have debt, you have the right to complete and accurate information about the money you owe. It is your right 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. You are legally allowed to dispute any debt you are contacted about – just do so within 30 days. At a minimum, the debt collection agency is required to verify the name, address, and amount owed to the original creditor. Falling behind on paying your debt can be a frustrating situation. If that happens, taking five minutes to breathe will help you maintain your balance. You have legally entitled rights and responsibilities, as does the debt collection agency that will be pursuing you.
