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You are technically considered a debtor any time you borrow money. If the world were perfect, we would all be able to pay our debts on time and in full. At some point in their adult lives, most people will miss a payment . If your payments get too far behind, your account may be sent to collections. Remember that even if you have an account in collections, you are protected by the Fair Debt Collection Practices Act. It is important to know the rights and responsibilities that both you and the debt collection agency have.
Responsibilities of the debt collection agency
Treating you fairly is the responsibility of the agency that pursues your debt. Debt collectors must contact you between 8 am and 9 pm. If your employer informs the agency that they cannot contact you at work, they are not allowed to. They are also prohibited from misrepresenting themselves or the debt that you owe. They are prevented from contacting any third party other than your spouse and lawyer about your debt.
Your obligations when you owe money
When you owe money, you also have obligations. It is essential that you know what amount you owe and to whom. Asking for a copy of your credit report is a good place to start. You are legally entitled to a single copy of your credit report each year, from each of the three credit reporting agencies. Your responsibility is to inform any collectors if you have a lawyer. Communicate with debt collectors in writing so you have a written record of all requests.
Rights of the collection agencies
The job of debt collectors is to collect the debts 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 agency does have the right to file a lawsuit if you are unresponsive to their communications.
The liberties you are afforded as a debtor
When you owe money, you do have the right to accurate and complete information about the money you owe. It is your right to know which debt the agency is contacting you about. In addition, you are entitled to dispute any debt that a collection agency contacts you about. You can dispute any debt you are contacted about – just do so verbally or in writing, within 30 days. The agency is then required to verify the name and address of the original creditor as well as the amount they believe you owe. Falling behind on paying your debt can be a disheartening situation. If that happens, though, take five minutes to breathe and take stock of the situation – it will help you gain your balance. You have both rights and responsibilities, as does the debt collection agency that will be pursuing you.
