When you owe money, you are technically considered a debtor. In a perfect world, we would all be able to pay our debts on time and in full. At some point, most people will fall behind on payments. When your debts get too far behind, you may be sent to collections. When your account is sent to collections, you are protected from unfair or harassing collection practices by the Fair Debt Collection Practices Act. It is important to understand the rights and responsibilities that both you and the debt collection agency have.
The obligations of the debt collection agency
Even when pursuing your debt, agencies are responsible for treating you fairly. Collection agencies are not legally allowed to call you before 8 am or 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. The only information they can contact a third party to get is how to contact you.
Your obligations as a debtor
You also have responsibilities when you owe money to creditors. It is important that you know what money you owe, and to whom. Collecting a copy of your credit report is a good place to start. You are entitled to three copies of your credit report each year – a single one from each credit reporting agency. You are responsible for informing collection agencies if you have an attorney. Communicate with debt collectors in writing so you have a written record of all requests.
Rights of the collectors
The job of a debt collection agency is to collect the debt that they believe you owe. They have the right to call you during business hours. They have the right to contact your lawyer, if you inform them that you have one. Lastly, the agency can file a lawsuit against you if you are unresponsive to their communications.
The liberties you have as a debtor
When you owe money, you have the right to have complete and accurate information about the money you owe. It is your right to know which debt the agency is contacting you about. Additionally, you have the right to dispute any debt that an agency is contacting 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 frustrating situation. If that happens, take a few minutes to breathe – it will help you maintain your balance. The legal system provides rights and responsibilities for both you and the collection agency pursuing you.
