Debt Collection

Written by Takara Alexis Sunday, 11 September 2011 09:40

Debt collection agencies typically intimidate the people they are working with because they are uninformed. There are certain things that debt collection agencies can and can't do and it is important to know your rights in these situations so you are more confident in what your available options are. The Fair Debt Collection Practices Act gives rights to those who owe money and protects them from unfair practices. The FDCPA covers all debts except those you acquire from running a business.

Debt collection agencies typically intimidate the people they are working with because they are uninformed. There are certain things that debt collection agencies can and can't do and it is important to know your rights in these situations so you are more confident in what your available options are. The Fair Debt Collection Practices Act gives rights to those who owe money and protects them from unfair practices. The FDCPA covers all debts except those you acquire from running a business.

The first thing you need to know is that a debt collection agency cannot contact you whenever or wherever they please. They are not permitted to contact you after 9pm or before 8am. If you inform them that you aren't allowed to be contacted while you are at work they will not be allowed to reach you then either. It is possible to get a debt collection agency to stop contacting you, but it is greatly recommended that you get in touch with the debt collection agency at least once to figure out exactly why they are trying to get in touch with you.

If after this interaction you still don't want to be contacted by the agency you send a letter requesting they stop contacting you and make sure you get a return receipt so you can prove they received this letter. After this letter the debt collection agency can only contact you in two cases, one is to inform you they received the letter and they will not be contacting you again and the other is to tell you that they or the creditor plan to further the matter and do something such as file a lawsuit.

People commonly mistakenly think that a debt collection agency is not allowed to contact anyone else about their debt. This is untrue as a debt collection agency can contact a third party in order to find out information about you such as your current address or a phone number where you can be reached. The agency should only contact these third parties once and only to get this information, they shouldn't discuss your debt with them.

Debt collection agencies do contain the power to garnish your wages or your bank account if they win a lawsuit against you. This is why it is vital to make sure you stay up to date with what the debt collection agency is doing and do not ignore a summons. If you fail to show up and argue your side you will almost always be subjected to wage garnishment.

Debt collection agencies certainly have power to take action against you, but they cannot do anything they please. Stay informed and make sure your rights are not being violated and you are being pursued in a legal manner.