Know Your Rights When It Comes To Your Debt Collectors

Living in bad credit is like a nightmare that never ends. That is, unless you do something right away to repair your credit score. Many people that are buried in debt stay in debt mostly because they are not educated about their rights and how credit laws work. There are some debt collectors that are able to extort more than what they should from borrowers that are ignorant about their rights. Debt collectors want consumers to pay as much as possible on a loan owed. Collecting agencies don’t really care if they use foul language, bug your boss, pretend to be lawyers, or if they can’t even prove that the debt they are collecting is yours legally.

This is the reason that the Fair Debt Collection Practices Act (FDCPA) was created by the federal government. This law sets standards that all collection agencies from all over the country should follow and it restricts them of illegal practices that they follow. Being enforced by the Federal Trade Commission, the FDCPA helps in the prohibition of collection tactics that are abusive and harass or invade the privacy of consumers.

However, a debt owed is a debt owed. Creditors and debt collectors most especially will want to escape with as much bending of the law as much as possible for them. Consumers will owe it to help themselves and know which debt collection laws can work for them. It is also best that you get started with credit repair right away.

First off, you should know that you are legally allowed to tell collectors to bug off and stop contacting you. This needs to be in writing so write your collectors and creditors a letter telling them to stop contacting you. This however will now make the debt go away and it won’t stop collectors from reporting your actions to the major credit bureaus.

Ensure that the debt being collected is actually yours so ask collectors to legally prove that you owe the debt in question. Within contacting you, the collection agency has a maximum of five days to notify you in writing that you indeed owe them money. The written document should include relevant information such as the consumer’s name, the name of the creditor, and the amount of debt that you owe and being sued for. It should also include a clause that states you have the right to dispute it within a month.
If collectors can’t provide proof, they have no case against you. Collectors however have no timeframe to get back to you and prove that you indeed owe the debt in question. What most collectors do next is to sell the debt to another agency. You then have to repeat again the steps that you did before.

If you feel that you’re being harassed in any way or if your collectors break any law, you may report the agency to the Federal Trade Commission this is even if you owe the debt. It is your right to file a complaint with the FTC or with the Attorney General of your state.