Debt Collection Services

Many people have taken the plunge and purchased high-ticket items, including a new house or started a new business venture with the added benefit that it would build excellent credit. People sometimes get into a routine of paying their bills monthly, on time, each month, until an unforeseen event brings their routine to a jolting halt. What is the cause? The list can vary from forgetfulness, to medical bills, to unforeseen incidents, but one factor consistently remains the same; someone will soon be making a collection phone call to you.

Debt collection services conjure up pictures of aggressive creditors who call your house and threaten you until you pay up. In real life, this does happen and it's is scary. The problem is that many people who are in debt don't realize that they have rights and that there are laws about the way a creditor can try to collect a debt.

If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a debtor. If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a debt collector. You should know that in either situation, the Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Of course, the law does not erase any legitimate debt you owe.

For more information on how to avoid the services of a debt collection agent, contact us here.

What to Expect

Debt collection services may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts. You can stop a debt collection service from contacting you by writing a letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. The debt collector or your original creditor could still sue you to regain what is owed to them.

Know Your Rights

Even though you do owe money, you still have rights. There are certain things debt collection services cannot do when trying to get you to pay. Even though there are laws against it, some companies will break the rule, that’s why it is important to know your rights. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, collection services may not use threats of violence or harm, publish a list of consumers who refuse to pay their debts, use foul language, or even call and harass the debtor.

Debt collectors are also not allowed to make any false statements to you. For example, they may not misrepresent the amount of debt you owe, claim that you have committed a crime, or even indicate that any papers you have, or will receive are legal forms, if they are not. Debt collection services are not able to seize your goods, or threaten to seize or garnish your wages, or remark you will be arrested if you do not pay your debts.

Report any problems you have with a debt collector to your state Attorney General's office and the Federal Trade Commission. Many states have their own debt collection laws, and your Attorney General's office can help you determine your rights. Knowing can give you the upper hand, and keep you out of fear of debts and debt collection services.