Owing Money : Your Rights and Responsibilities
Monday, February 15th, 2010 Subscribe To Our Feed
You are legally defined as a debtor any time you borrow money with a loan or credit card. If the world were a perfect place, everyone would be able to pay their debts completely and on time. Almost everybody with debt will miss a payment at some point. If you have fallen behind on paying debts, your account may be sold to a collection agency. 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 essential you understand the rights and responsibilities both you and the debt collection agency have.
Responsibilities of the debt collection agency
When an agency purchases or otherwise decides to pursue your debt, it is their responsibility to act fairly. Debt collectors cannot contact you before 8 am and after 9 pm. Agencies also cannot contact you at your place of employment if you request that they do not. Debt collectors are not allowed to lie about who they are or the debt they believe 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 obligations when you owe money
You also have responsibilities when you owe debt. It is essential that you have a good understanding of the money you owe, and to whom you owe it. The best place to begin 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. You are responsible for informing any debt collectors if you are represented by an attorney. It is best to communicate with debt collection agencies in writing, so there is a written record of all requests you have made.
Liberties of the collectors
A debt collection agency is hired to collect the debt that they believe you owe. They have the liberty of calling you during reasonable hours. They have the right to contact your lawyer, if you inform them that you have one. Finally, the debt collection agency can file a lawsuit if you have been unresponsive to their communications.
The liberties you are afforded as a debtor
When you are carrying debt, you are entitled to complete and accurate information about the money you owe. In addition, you have the right to know exactly which debt a collection agency is contacting you about. Additionally, you have the right to dispute any of the debts an agency contacts you about. Verbally or in writing, you can dispute any debt you owe within 30 days. The agency must verify 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 disheartening situation. If that does happen, taking five minutes to breathe and take stock of the situation will help you stay on track. You have legally entitled rights and responsibilities, as does the debt collection agency that will be pursuing you.
Technorati Tags: No Tags
Related Tags: No Tags
Possible Related Posts
