What Debt Collectors Can and Cannot Do

What Debt Collectors Can and Cannot Do

If you are drowning in debt and receiving daily phone calls from at least one debt collector, it is important to know your rights. Thanks to the Fair Debt Collection Practices Act (FDCPA), there are laws designed to protect you from such unwanted communication.

What Debt Collectors Can't Do

The FDCPA outlines several things Debt Collectors must not do. For example, they may not call you before 8 a.m. or after 9 p.m. or call you several times a day. In addition, they should not call you at work without your permission. The debt collector also should not discuss your debt with friends or family because they are prohibited from misrepresenting the status of a debt or claiming to be affiliated with any government entity.

How to Stop Those Harassing Phone Calls

First, according to the FDCPA, you can stop the phone calls by sending debt collectors a cease and desist letter. This letter tells debt collectors that they should no longer contact you. You should send your letter by certified mail, return receipt requested, so you can prove it was received.

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What Collectors Can Do

Once the debt collector receives this letter, it can only contact you to inform you that it will no longer be contacting you or to notify you that it plans to take action against the debt collector. legal actionsThe company is not liable for any damages, such as initiating a lawsuit against you.

If you are contacted for another reason, you can report it to your state attorney general's office or the Better Business Bureau. And if the harassment continues, you could hire an attorney and try to file a lawsuit against the collection agency. However, this may be difficult since many agencies are based overseas.

The Worst They Can Do

Suppose you owe $ 5,000 to a credit card company that sold your debt to a collection agency. The agency may have paid less than $100 for the debt, but that does not change the fact that you still owe $5,000.

  1. If you do not pay, the collection agency may file a lawsuit.
  2. If you fail to attend your court date, the debt collector may obtain summary judgment.
  3. If he makes an appearance, the debt collector could still obtain a judgment.

Once the agency has a failure, they may be able to put an alert on your house. If ever the house comes, that $ 5,000 comes off the top. Otherwise, if you thought you had $ 10,000 in equity you end up getting only $ 5,000. However, if at the collection agency you received the other $ 5,000. This makes it much more difficult to sell your house, as you will have to deal with this first.

US National Credit Solutions is one of the top rated debt settlement companies in the country. In addition to providing excellent 5-star services to our clients, we also focus on educating consumers across the United States on how to better manage their money. Our posts cover topics related to personal finance, saving tips, and much more. We have served thousands of clients, settled millions of dollars in consumer debt.

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