This is the first post by new DebtKid.com writer, Amy! She will be adding valuable content from time to time for readers struggling with debt/credit related issues.
Collection companies are known for their bad behavior. Although they do have the right to work on behalf of your creditors to get the money that is owed, they often go overboard and sometimes even violate government rules. Unfortunately, if you’re in debt you may feel as if you are at the mercy of these agencies and that you have no rights.
Don’t feel that way. Know your rights and force those companies to abide by them.
Contact Rules
The federal government has established rules about when you can be contacted by collection agencies. Calls before 8 am or after 9 pm are prohibited. If you receive a call during prohibited times, inform the caller they are violating your rights and ask them to call again during legal hours. If they persist, you may need to take further action.
Collection agencies can contact you at work. However, if you inform them not to call you at work they are legally bound to follow those instructions. Some companies will persist. In this case, inform the agency that you told them not to contact you at work again and that they are violating the law.
If you’ve filed bankruptcy, the company is no longer able to contact you either. Inform them that you are in the process of filing and provide them with the contact information for your attorney. They can then no longer contact you by phone or mail.
Privacy Regulations
These agencies are also not permitted to tell other people about your debt. Generally, if they have to leave a message they won’t give the name of the company and are often reluctant to say what the call is in regards to.
Despite these rules, some collection companies have been known to speak to parents, co-workers, even bosses about debt. If you find out this happened, you can take action against the agency.
Threats? Not Cool
Some collection representatives will say whatever they think will work to make you repay your debt. That includes threats, such as “I’ll send people to your house to repossess everything you own.” An agent is never allowed to make statements which cannot or will not be followed up on. Threats of illegal action, such as violence, are also violations of your rights.
The idea is simply to intimidate you and make you give into their demands for payment.
Repayment Plans
Unfortunately, many people have the misconception that they have the right to set up any type of payment plan they want with a collection agency. That’s not the case.
The collection agency has no legal obligation to accept your proposed terms for repayment or even to offer you a repayment plan. They usually will make lump sum settlement offers but those amounts must be paid in full.
Don’t assume that you can stop harassing phone calls by sending in a weekly check for $10 or something like that either. These companies can continue to contact you as long as the debt is not paid.
Keep in mind that violation of your rights entitles you to a monetary award through the courts if your claims are considered legitimate. Make sure to keep records of the offending contact and ask for the name of the person contacting you.
