You are considered a debtor any time you borrow money through a personal loan, credit card, payday loan, or mortgage. If the world were perfect, we would all be able to pay our debts on time and in full. At some point, most people will fall behind on payments. If your debts get too far behind, you may be sent to collections. It is essential to remember that even if you have an account in collections, the Fair Debt Collection Practices Act protects you from harassment. It is important to know the rights and responsibilities that both you and the debt collection agency have.

Obligations of the debt collection agency

When a collection agency purchases your debt, they are legally required to treat you fairly. Debt 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 your employer informs them that they cannot. They are also prohibited from misrepresenting themselves or the debt that you owe. Debt collectors are also not allowed to discuss your debt with any third party – they can only get information about how to contact you.

Your responsibilities when you owe money

When you owe money, you also have obligations. It is essential that you know what money you owe, and to whom. A good place to start is securing a copy of your credit report. Each year it is your right to receive three copies of your credit report – one from each credit reporting agency. If you are represented by a lawyer, it is your responsibility to inform the collection agencies. So you have a written record of all the requests you make, it is best to communicate with debt collectors in writing.

Liberties of the collectors

It is the job of the debt collection agency to collect on the debts you have agreed to. They are allowed to call you during reasonable business hours. If you have informed them that you have a lawyer, they can contact and discuss your debt with them. If you are unresponsive to their communications, the agency can file a lawsuit.

Your rights as a person that owes debt

When you owe money, you have the right to be provided with information that is both accurate and complete. You also are entitled to know which debt an agency is contacting you about. In addition, you are entitled to dispute any debt that a collection agency contacts 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 then must verify, at minimum, the amount they believe you owe along with the name and address of the original creditor. Falling behind on paying your debt can be a depressing situation. Take a few minutes to breathe and take stock of your situation – it will help you maintain your balance. You have legally entitled rights and responsibilities, as does the debt collection agency that will be pursuing you.

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