Consumer Debt Collection – Know Your Rights
It starts with a letter. Then another, more aggressive letter. Then come the phone calls, and even threats of an unsavory report to credit bureaus. There could even be a potential lawsuit.
Creditors will hire collection agencies to retrieve debt. Often these third-party companies will work for commission. Because of this, collectors are more likely to go after the money more vigorously. It is important to know your rights.
Collection agencies can actually report your debt to credit bureaus. Unfortunately settling the debt will not result in it being removed from your credit reports, it will only be checked off as “paid.” They also can ask for a debtors credit report to size up the person’s financial situation, or to get an updated phone number and address. And, although collection agencies do not like to send many accounts back, sometimes they will refer their account back to the creditor in order to recommend filing a law suit.
There are rules and regulations by which collection agencies must abide. Letters should come in ambiguous envelops that do not reveal that any type of debt is owed. In terms of phone calls, a collector may not disclose the reason for the call. For example, if a collector reaches an answering machine, they cannot divulge why they are calling, all they can do is leave their name and a number where they can be reached.
Although collection agencies are allowed to contact a debtor’s job, they absolutely cannot try to get a debtor fired from their job. They absolutely cannot make any kind of information concerning the debt public, except when dealing with credit bureaus. Although many people think that a collection agency could legitimately seize a debtor’s bank account, paycheck and assets, the company cannot unless their has been a legal proceeding ordering them to do so. Collection agencies absolutely cannot threaten a debtor with violence.
Although some collections agencies may attempt to practice illegal tactics to get money, there are also a large number of reputable ones. With financial issues like debt, it is always important to know your rights.
Mallory McGuinness-Hickey does freelance writing for debt collection agency Rapid Recovery Solution . For more information contact seo@rapidrecoverysolutions or simply click on the hyper link.
