Credit and Collection
Have you ever wondered what debt collection is all about? If you use credit cards or owe money on any type of loan, car or home mortgage, you may – at some point be contacted by a debt collector if you fall behind in any of your payments. Collections on a debt can also occur if an error shows up on your account.
In general, a debt collector is anybody working on behalf on the company or institution that you owe money to. This can be a special collections service or even an attorney. You should be aware that – as a debtor – a certain law called the Fair Debt Collection Practices Act protects you. This means that debt collectors need to abide by certain guidelines and restrictions in a bid to get you to pay the debt.
There are restrictions regarding how and when you may be contacted, and you also have the power to stop the debt collector from contacting you at all. Of course, debt collectors may not threaten you, swear at you or pretend to be something that they are not, in order to get the money from you.
The Fair Debt Collection Practices Act allows you to sue for damages if you feel that your rights have been violated.
It is important to remember, however, that ignoring debt collectors will not make the debt go away and you will need to pay it up eventually. Even if you activate your rights under the Fair Debt Act and demand that you are not contacted anymore, the debt collector or the original person to whom you owe money can still sue you for unpaid debts. It is probably better and cheaper in the long run to settle all accounts as soon as you are able.
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