Your Money Tips

Any time you borrow money in any way, you are technically a “debtor”. We would all be able to pay our debts on time and in full if the world were perfect. Most people will miss a payment at some point in their lives. When your debts get too far behind, you may be sent to collections. The Fair Debt Collection Practices Act protects you from harassment by debt collectors. It is essential you understand the rights and responsibilities both you and the debt collection agency have.

The collection agency’s obligations

There are laws that require a debt collection agency to treat you fairly. Debt collection agencies must contact you between 8 am and 9 pm. Debt collectors cannot contact you at your work if you ask that they do not. They 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 when you owe money

You also have responsibilities when you owe money to creditors. It is essential that you have a good understanding of the money you owe, and to whom you owe it. A good place to start is collecting a copy of your credit report. You are entitled, legally, to one copy of your credit report each year, from each of the three credit reporting agencies. You are responsible for informing any debt collectors if you are represented by a lawyer. It is best to communicate with debt collection agencies in writing, so there is a written record of all requests you have made.

Rights of the debt collection agencies

A debt collection agency is paid to collect the debts they believe you owe. They have the liberty of calling you during business hours. If you have an attorney, they have the right to talk to them about your debt. If you are unresponsive to their communications, the agency can file a lawsuit.

The liberties you have as a debtor

You have the right to be provided with complete and accurate information about the money you owe. In addition, you have the right to know exactly which debt a collection agency is contacting you about. In addition, you are entitled to dispute any debt that an agency is contacting you about. Within 30 days, you are legally allowed to dispute any debt an agency contacts you about. You are legally entitled to the name and address of the original creditor as well as the amount owed. Falling behind on paying your debt can be a frustrating situation. Take a few minutes to breathe and take stock of your situation – it will help you maintain your balance. You have legally entitled rights and responsibilities, as does the debt collection agency that will be pursuing you.