If you are not making enough money to clear out your debts, you may start falling behind in making your payments. If your name falls under the creditor’s records of defaulted or delayed payments, a debt collector may be contacting you. Debt collectors are specialized agents who use every resource within they reach to recover debt. The debt collector may be part of the finance department of the lender or part of an independent debt collection firm that is outsourced to handle such matters.
The Fair Debt Collection Practices Act (FDCPA)
Debt collectors have been known to use some gruesome methods such as abusive, unfair or deceptive practices to recover payments from debtors. Unfortunately, most people who owe money are unaware of their rights when it comes to debt collection. They end up living under anxiety over the constant badgering by debt collectors at home or even their place of work. The Federal Trade Commission or FTC is the national consumer protection agency that enforces the ethical practices of debt collection, limiting what debt collectors can or cannot do. The Fair Debt Collection Practices Act (FDCPA) is the law that governs all debt collection practices nationwide. The act covers collection of credit card, medical, mortgage and any other debts for personal or family purposes.
When can a debt collector contact you?
A debt collector should contact you at a convenient time and location. For instance, if the debt collector is aware that you should not receive debt collection calls at work, then they should not call you there. The debt collector should also stop contacting you if you have a debt attorney representing you. If you have legal representation, the debt collector should start contacting your attorney instead.
If you have a debt collector on your case trying to collect debt from you, you can set the ground rules about communication to protect your rights. In case you write to a debt collector to stop contacting you, they can only contact you to say there will be no further contact or to alert you of legal action against you such as a lawsuit. However, telling a debt collector to stop contacting you does not mean they cannot use other legal ways to recover the debt you owe.
What does the communication between a debtor and debt collector entail
The debt collector should always share specific information about the debt when contacting you. This includes the name of the creditor, the amount you owe how to seek verification of the debt and finding out how and when you will pay back the debt.
Has debt got you down? Consumer debt is at an all time high and debt relief is one of the ways to get out of debt. You should contact a debt relief specialist to know more about debt relief. They can help you slow down or stop the growth of your debt. They can also negotiate for partial or total debt cancellation.
Thomas Grayson is a financial advisor mainly working with individuals and small business owners to help them manage debt. You can read his blogs to know more about debt relief.