The Liberties You Have When You Owe Money
By definition, a debtor is any person that owes money to another person. In a world that was perfect, we would be able to pay our debts on time and in full. At some point, most people will miss a payment or fall behind. If you get too far behind in paying on your debts, you may be sent to collections. You are protected from harassment by debt collectors by the Fair Debt Collection Practices Act. It is important to understand the rights and responsibilities that both you and the debt collection agency have.
The obligations of the collector
There are laws that require a debt collection agency to treat you fairly. Collection agencies are not legally allowed to call you before 8 am or after 9 pm. Debt collectors cannot legally contact you at work if you ask that they do not. Collectors are also prohibited from misrepresenting themselves or the debt they believe you owe. They are also prohibited from contacting third parties for any information other than how to contact you.
Your responsibilities as a debtor
You also have responsibilities when you owe money to creditors. It is important that you have a good understanding of the money you owe, and to whom you owe it. A good place to start is securing a copy of your credit report. Each of the three credit reporting agencies is legally required to give you a copy of your credit report each year. It is also your responsibility to inform any collectors if you are represented by an attorney. Communicate with debt collection agencies in writing, so you have a hard record of all requests made.
Liberties of the debt collectors
A debt collection agency is paid to collect the debts they believe you owe. They have the liberty of calling you during reasonable hours. If you have informed them that you have a lawyer, they can contact and discuss your debt with them. Lastly, the debt collection agency can file a lawsuit if you have been unresponsive to their communications.
The liberties you have as a debtor
When you owe money, you are entitled to accurate and complete information about the money you owe. In addition, you are entitled to be informed of exactly which debt an agency is contacting you about. You also are entitled to dispute any debt that an agency is contacting you about. Within 30 days of being told of a debt, you have the right to dispute it either verbally or in writing. The agency is required to verify the amount they believe you owe, along with the name and address of the original creditor. Falling behind on debt can be a depressing situation. If that happens, take a few minutes to breathe - it will help you maintain your balance. Both you and the collection agency pursuing you have legally entitled rights and responsibilities.
Tags: debt, Debt Relief, your rights