Any time you borrow money, you are technically a debtor. If the world were perfect, all people would be able to pay their debts on time. At some point, most people will fall behind or miss a few payments. Your account may be sold to a debt collection agency if your payments get too far behind. You are protected from unfair or harassing debt collection practices - the Fair Debt Collection Practices Act ensures you are treated well. Both you and the debt collection agency have rights and responsibilities - and it is important that you understand them.
Responsibilities of the collection agency
When a collection agency purchases your debt, they are legally required to treat you fairly. Collection agencies are not allowed to contact you before 8 am or after 9 pm. When you ask a debt collector to not contact you at work, they can no longer do so. No matter what you owe, debt collectors cannot lie about what you owe or who they are. Debt collectors are also not allowed to discuss your debt with any third party - they can only get information about how to contact you.
Your responsibilities as a debtor
When you owe money to creditors, you also have obligations. It is important that you know what money you owe, and to whom. A good place to start is asking for a copy of your credit report. You are legally entitled to a single 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 an attorney. So you have a written record of all the requests you make, it is best to communicate with debt collectors in writing.
Liberties of the debt collection agencies
It is the responsibility of the debt collection agency to collect the debts they believe you owe. They have the liberty of calling you during business hours. If you have informed them that you have a lawyer, they can contact and discuss your debt with them. Lastly, the agency can file a lawsuit against you if you are unresponsive to their communications.
Your rights as a debtor
When you owe money, you have the right to be provided with information that is both accurate and complete. In addition, you have the right to know exactly which debt an agency is contacting you about. In addition, you have the right to dispute any debt that an agency is contacting you about. Verbally or in writing, you can dispute any debt you owe 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 debt can be a disheartening 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.