Debt Collectors: What To Expect
Who can collect on debt?
Who can collect on debt?
Any creditor that you are in default of payment with can make attempts to collect your debt. If you are late with payments, these creditors have every right to attempt collections. If there was an error in reporting your debt, call the creditor to clear up the matter as soon as possible.
A debt collector is someone who collects debt on a regular basis. Collections agencies, lawyers who regularly collect on debt, and companies who purchase delinquent loans in order to attempt collections are examples of debt collectors. The practices in which they proceed to collect are regulated by the Fair Debt Collections Practices Act.
What are debt collectors prohibited from doing?
Debt collectors may not harass the debtor or any other third party contacted in the pursuit of payment. Threatening violence or harm, using profanity, publishing a list of names of debtors other than to the collection agency, or repeatedly using the phone to harass are all collection procedures which are off limits to debt collectors. These collectors may not lie, present themselves as a government agency or lawyer, claim that you have committed a crime, pretend to be from a credit bureau, misrepresent debt amount, or try to confuse your understanding of papers (legal or not) sent out to you.
You are also protected from any collector threatening; jail time for failure to pay, seizure of property, threatening legal action if what action proposed is illegal or if they have no intention to follow through with it. They may not pretend to collect under a false name, pass out false information belonging to you or send you something with the intention of it looking like a legal document when it is not. They may not try to collect interest fees or any other charges placed on top of the initial debt. If you sent a payment which is post-dated, they may not cash it early. Postcards are never a contact option for any debt collector.
What can debt collectors do?
The Fair Debt Collection Practices Act covers debt from personal, family and household debt. This includes personal credit cards, vehicle loans, medical bills, and home mortgages. If you are in default with any of these creditors from personal spending, a debt collector will need to follow all rules and regulations that apply to this act. Business debt is not covered under this act.
A debt collector is allowed to contact you at home within reasonable timings. They may not contact you before 8 a.m. or after 9 p.m. unless you have given them permission otherwise.
If you have an attorney representing you, once the collector has been informed of this, they may not contact you or anyone else. If you have not hired an attorney, a collector may contact others in pursuit to find out your address, phone number or place of occupation. The collectors are not allowed to contact a third party more than one time nor may they discuss your debt with anyone besides yourself, your spouse or lawyer.
It is always good to try to talk the collector at least once. you will be able to find out if the debt belongs to you is correct or fraudulent. If you then decide that you are not willing to work with them, you may contact them in writing to make that request.
How to stop collectors from contacting you if you do not have an attorney:
Write a letter requesting that they stop contacting you and make a copy of the letter to keep in your files. Send the original letter certified mail and prepay the return receipt so you will have documentation that the collector received it. Once they receive this letter, the collector will only have two permissible reasons to contact you: to let you know that they received it or to let you know that they will be filing legal action against you.
Be aware that any type of stop contact you make with debt collectors does not get rid of the debt. The creditor or debt collector will still be able to sue you for the amount owed.
by: Jen Smart
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