Posts Tagged ‘collection agency’

Dealing With Collection Agencies

Posted April 3, 2009 by Bernz

No one likes to get a call from a collection agency. It’s their job to get you to pay back money you owe to a creditor at a time when you may not have the money to do so. But ignoring calls from a collection agency is never in your best interests. They have a legal right to collect the debt on behalf of their clients and not complying can be used against you in any future legal proceeding.
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However, you do have rights when it comes to dealing with debt collectors. Under the federal Fair Debt Collection Practices Act (FDCPA), collection agencies cannot legally do the following:

• Call you at unreasonable times (before 8 am or after 9 pm)
• Pretend to be someone other than a debt collector
• Use abusive language or threaten you with legal action
• Add on additional charges to the debt other than interest stated in the original contract
• Call your workplace if your employer forbids it
• Discuss your debt with third parties who are not directly connected as co-debtors

If any of these practices are happening, you can demand in writing that the collector stop contacting you except to let you know that collection efforts have ceased or that the case is going to trial. Remember, however, that not hearing from a collection agency doesn’t mean that you don’t still owe the debt. You can also file a complaint with the Federal Trade Commission. (more…)


Posted in Financial Education, Loans, Misc | 1 Comment »


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