Repair Your Credit Profile

When you owe money, you are technically considered a debtor. If the world were perfect, all people would be able to pay their debts on time. At some point in their adult lives, most people will miss a payment . A collection agency may purchase your debt if your account falls too far behind. It is essential to remember that even if you have an account in collections, the Fair Debt Collection Practices Act protects you from harassment. Educating yourself about the rights and responsibilities that both you and the debt collection agency have is essential.

Obligations of the debt collection agency

Original creditors or debt collection agencies that purchase your debt are required to treat you fairly. This means that agencies cannot contact you before 8 am and after 9 pm. If your employer informs the agency that they cannot contact you at work, they are not allowed to. Collectors are also prohibited from misrepresenting themselves or the debt they believe you owe. The only information they can contact a third party to get is how to contact you.

Your obligations when you owe debt

When you owe money, you also have obligations. It is important that you know what money you owe, and to whom. Asking for a copy of your credit report is a good place to start. You are legally entitled to three separate copies of your credit report - one from each credit reporting agency each year. It is also your responsibility to inform any collectors if you are represented by a lawyer. Have conversations with debt collectors only in writing so you have a hard record of anything that is said.

Liberties of the collectors

It is the responsibility of the debt collection agency to collect the debt that they believe you owe. They are allowed to call you during reasonable business hours. They have the right to contact your lawyer, if you inform them that you have one. 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 have debt, you have the right to complete and accurate information about the money you owe. It is your right to know which debt the agency is contacting you about. In addition, it is your right to dispute any of the debts that an agency contacts you about. You are entitled to dispute a debt within 30 days of receiving notice - either verbally or in writing. The agency then must verify, at minimum, the amount they believe you owe along with the name and address of the original creditor. Falling behind on any debt can be a very frustrating situation. If that does happen, take an opportunity to breathe and take stock of your situation. The law provides both rights and responsibilities for both you and the collection agency pursuing you.

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