Debt Collection And The Law | Know Your Rights

If you owe money to a debt collection agency or debt collector

, you need to know what they can and can't do so as to collect monies owed to them. You have an obligation to pay what you owe, and the debt collectors have an obligation to follow the law and not harass you at home or at work.

The Fair Debt Collection Practices Act applies to individuals who collect debts owed to creditors for personal, family and household debts. These consist of car loans, mortgages, charge accounts and money owed for medical bills. A debt collector is someone employed to collect money you owe.

Within just five days after a debt collector first contacts you, the collector must send you a notice that tells you the name of the creditor, the amount you owe, and what action to take if you think you don't owe the money.

If you owe the money or part of it, make contact with the creditor to arrange for payment.

If you think you do not owe the money, contact the creditor in writing and send a copy to the collection agency with a letter informing them not to make contact with you. A debt collector might not:

Call you at unreasonable times, for example, before 8 a.m. or after 9 p.m., unless you agree;

Make contact with you at your workplace if you tell the debt collector your employer disapproves;

Make contact with you after you write a letter telling them to stop-except to notify you if the collector or creditor plans to take a specific action;

Contact your friends, relatives, employer or others-other than to find out where you live and work;

Harass you through threats to hurt you, profane language or repeated phone calls;

Make any false statement, or claim that you'll be arrested; or

Threaten to have money taken from your paycheck or to sue you-unless of course the collection agency or creditor plans to implement it and it is legal.

You have a responsibility to pay off any debt that you owe. Debt collection agencies also have a responsibility to deal with their clients with respect and follow the law.

If you're being harassed by a debt collection agency, speak to the authorities and report them.

by: Bobby Lee.

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