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Debt Collection

The Facts About Debt Collection

Dealing with a debt collection agency is definitely one of the more stressful things in life. If you have fallen behind with your payments to one or more of your creditors, the odds are you will soon be hearing from a debt collector, if you haven’t already.

Debt collectors are people who attempt to collect debts owed to other people. Lawyers who collect debts are also considered debt collectors.

If you are currently experiencing this situation or feel that you may be in the near future, it is a good idea to know the facts surrounding debt collection. It is also important to know your legal rights when dealing with these collection agencies.

Normally, you will not hear from a debt collection agency until you have missed several months’ worth of payments to the creditor. By this time, the creditor has taken a loss on your account and has either sold it at a discounted price to a collection agency or is using an in-house agency to try and get payment from you. Either way, your missed payments will be reported to the credit bureaus.

Federal law requires that debt collectors treat you fairly and with respect. These are some basic guidelines to what a debt collector can and cannot do.

  1. A debt collector is allowed to contact you but only after 8am and no later than 9pm, unless you agree otherwise. They may get in touch with you in person, by telephone, or by mail, telegram, or fax. If your employer prohibits it, they may not contact you at your workplace.
  2. If you have an attorney representing you in this matter, the debt collector must contact the attorney directly, not you. They are allowed to contact other people but only to find out an address or phone number for you. If they have personally spoken with you, they are not allowed to call others.
  3. A debt collector may not harass you or use profanity. They also may not threaten you in any way, either directly or implied.
  4. A debt collector may not lie or make misleading statements when speaking with you or anyone else. They cannot say they are someone else. They are not allowed to discuss your financial situation with a third party.