Debt collectors are often a huge source of anxiety for consumers behind on payments, underscoring the need to keep thorough records of all communications. Doing so can have drastic impacts on one’s overall credit and financial stability.
The national nonprofit credit counseling agency Take Charge America outlines five considerations when dealing with debt collectors:
• Right to dispute incorrect debt: If you don’t think you owe the debt being collected, or the amount owed is incorrect, you have 30 days from your initial communication with the collector to dispute all or part of the debt. Then, the debt will need to be verified by the collector. They will be unable to contact you until this is complete.
• Right to privacy of personal information: Your private information, including your address, phone number and place of employment, is protected and typically limited only to spouses, parents, guardians or attorneys (if involved).
• Right not to be harassed: Under the Fair Debt Collection Practices Act (FDCPA), collectors are not allowed to harass, oppress, abuse or deceive you. This includes yelling, swearing, threatening, repeated calls before 8 a.m. or after 9 p.m., or sharing your information publicly.
• Right to argue the collector is barred from starting a lawsuit: If the debt is several years old, find out what the statute of limitations is for filing a collections lawsuit. Consulting an attorney prior to making payments or agreeing to a payment plan can save you from legal hassle.
• Right to ensure the debt is legitimate: Before giving any personal information, ask the collector’s name, debt collection company, company address and phone number. You should also ask them how much you owe, the name of the organization or person money is owed to, and how to dispute or verify the debt. If they don’t tell you, ask for it in writing prior to paying or negotiating.
If you believe a debt collector is violating the FDCPA, you can file a complaint online or call 855-411-2372. For more info on financial resources, visit https://www.takechargeamerica.org/budget-tools/.