Whenever you borrow money with a loan or credit card, you are technically considered a “debtor”. If the world were a perfect place, everyone would be able to pay their debts completely and on time. Almost everyone with debt will end up falling behind or missing a payment. You may be sent to collections when your debts get too far behind. It is essential to remember that even if you have an account in collections, the Fair Debt Collection Practices Act protects you from harassment. Educating yourself about the rights and responsibilities that both you and the debt collection agency have is essential.
Responsibilities of the collection agency
It is the responsibility of the debt collection agency to treat you fairly. Debt collectors cannot contact you before 8 am and after 9 pm. Agencies cannot legally contact you at work if your employer informs them that they cannot. Debt collectors are prohibited from misrepresenting themselves or the debt you owe. They are also not allowed to discuss your debt with anyone other than your spouse and lawyer .
Your responsibilities when you are a debtor
When you owe money to creditors, you also have responsibilities. It is essential that you know what amount you owe and to whom. Obtaining a copy of your credit report is a good place to start. 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 an attorney. Communicate with debt collectors only in writing, so you have a record of all conversations you have.
Rights of the collection agency
The job of a debt collection agency is to help you pay the debt they believe you owe. They have the right to call you during business hours. They have the right to contact your attorney, if you inform them that you are represented by one. Lastly, the debt collection agency does have the right to file a lawsuit if you are unresponsive to their communications.
The rights you are afforded as a debtor
You have the right to complete and accurate information about the money you owe . You are entitled to be told exactly which debt it is a collection agency is contacting you about. In addition, you are entitled to dispute any debt that an agency is contacting you about. Within 30 days of receiving a notice of debt, you have the right to dispute the debt either verbally or in writing. The agency must verify the amount they believe you owe along with the name and address of the original creditor. Not being able to pay your debt can be a frustrating situation. Take five minutes to breathe if that happens – it will help you take stock of the situation and keep your balance. When you owe debt, both you and the collection agency have rights and responsibilities that help protect all interested parties.
