Debt Collectors
Debt collectors are responsible for contacting you to collecting unpaid consumer debt. Debt collectors may work for in-house agencies that are actually part of the company to which you owe money or may work for independent agencies that have purchased your debt. Collectors often aggressively pursue debtors, sometimes to the point of harassment, which is illegal. If you receive a call from a debt collector, there are some things you should know regarding your rights and responsibilities.
-
Function
-
Debt collection agencies buy unpaid debt from companies for less than it is worth and then try to recoup as much money as possible from the person owing the money. Debt collectors call or write you to try to persuade you to pay the money you owe. The Fair Debt Collection Practices Act regulates the behavior of collectors and covers family, household and personal debts.
Time Frame
-
Debt collectors will begin calling after you have not paid a bill for several months and have not made arrangements with the company for repayment. Debt collectors are required to send you written notice of the debt you owe 5 days after their first phone call or contact with you. The written notice must include details about the company you did not pay and the amount of money owed. The letter should include details about steps you can take if you believe that you do not owe the money.
Features
-
Debt collectors will try to get you to pay the bill in full. If you can't or won't do this, they will try to negotiate a payment plan with you. If you decide to begin a repayment plan, ask that the details be sent to you before you begin making payments. If there is more than one debt that the agency is handling, you have the right to specify to which debt your payments should be applied.
Because the original company no longer owns the debt, you will need to make payments to the collection agency in most cases. If you fail to make the agreed upon payments, you may find yourself being sued for the entire balance of the debt. If a legal judgment is entered against you, you will be required to pay the outstanding amount and your wages may be garnished to pay this debt.
Considerations
-
You do not have to accept telephone calls from debt collectors. When they call, you can tell them that all future contact with you must be in writing, that you do not want to be called at work or home and that you are the only person who should be contacted regarding the outstanding bill.
Write down the name and telephone number of anyone you speak with and make a few notes about what was said during the conversation. Keep copies of anything you send to the collection agency and send everything by certified mail or return receipt so that you will have proof that the agency received your letter or information.
Warning
-
Debt collectors are not permitted to make false statements to you in an attempt to get you to pay the debt and cannot threaten you or use obscenities when speaking to you. They may not pretend to be government representatives or imply that you have committed a crime by failing to pay your debt.
Collectors are required to stop calling you if you request this and must then send you written notification of any action that they plan to take against you. If a debt collector does not follow these rules, you can report the agency to the Attorney General in your state and the Federal Trade Commission. The FTC can be reached toll-free at (877) 382-4357.
-
