What are your rights in dealing with a collection agency?

Answer

You definitely have rights in this manner. I recently went through the same thing you are going through and found my answers through the "Fair Debt Collection Practices Act." They have an official website that will list your rights.

According to the act, a collection agency must submit to you in writing who the original creditor was, the original creditors contact information (if account was sold who owns the account now), and the amount owed. After you request this information, they must send the information to you via letter. You also have rights that state the collection agency must not threaten you in any way. If they do, you can prosecute.

In my instance, I wrote a letter to the collection agency stating my dispute of the debt and until they provided me with the information I requested (original creditor, amount owed, etc.), I would dispute the debt as invalid. I sent this letter with delivery confirmation and signature requested. This allowed me to have on file that I did dispute the debt and any further contact with me regarding the debt must be made via mail. Since then (sept 2003), I have not heard back from this collection agency nor is it on my credit report. In fact, I looked up this collection agency on the Better Business Bureau website and found tons of complaints stating the same problem that I had encountered with the agency.

Hope this helps. Remember, everything you need is on the the Fair Debt Collection Practices Act website!

Answer

You have rights, but you are still responsible for your debts. If you refuse to pay the debt, whether you think you have a valid reason or not, the collection agency has a right to get a judgment and garnish your wages or bank accounts. Having had something repossesed does not mean that it was "taken care of." It was your responsibility to make sure your name was cleared rather than just assuming that it was. If the furniture had decreased in value from normal wear and tear, it is very likely that you owed more on it than it was worth at the time it was repossesed.

It is wonderful that you are trying to get your life back together, but that means nothing to the collecion agency and it does not release you from your financial responsibilites. Most collection agencies train thier employees in collection laws and they know what they're doing. Nobody likes a bill collector, but we all know that they're necessary.

Answer

Each state has a statute of limitations (SOL) for debts incurred. If your debt is outside the SOL then you are not legally required to pay it. Period. A debt outside the SOL is an affirmative defense in a lawsuit.

Properly trained and well-mannered debt collectors (DC) are the exception, not the rule. Verbal abuse may be recorded, in most cases, with one-party consent, and used against the collection agency in a suit alleging violations of the FDCPA.

Rights are retained in writing only. Do not settle for telephonic exchanges, decisions, or promises. Some states, particularly Ohio, have more severe rules regarding violations of the FDCPA.

Do not ignore the DC or the dunning letters. Some DCs follow the law, but your are responsible to ensure any contact with a DC is lawful. If they violate your rights, they sure won't sue themselves over it.

When dealing with collections agencies, make sure you are familiar with the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA), at minimum.

Here are some points.

Who is a debt collector?

A DC is any person, other than the creditor, who regularly collects debts owed to others. This also includes attorneys who collect debts on a regular basis.

How may a debt collector contact you?

A DC may contact you in person, by mail, telephone, telegram, or Fax. However, a debt collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m, unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves. Further, they cannot call you at home if you have written them and told them not to do so.

Can you stop a DC from contacting you?

You can stop a collector from contacting you by writing a letter to the collection agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact. The agency may notify you if the DC or the creditor intends to take some specific action. In the early stages of validation, there is no reason to prevent all contact. Written communication is the safest and preferred method. They put their claims in writing, and you respond.

Can a DC contact anyone else about your debt?

If you have an attorney, the DC may not contact anyone other than your attorney. If you do not have an attorney, a collector may contact other people, but only to find out where you live and work. Collectors usually are prohibited from contacting such permissible third parties more than once. In most cases, the DC may not tell anyone other than you and your attorney that you owe money.

What must the DC tell you about the debt?

Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

Can a debt collector continue to contact you if you believe you do not owe money?

A collector may not contact you if, within 30 days after you are first contacted, you send the collection agency a letter stating you do not owe money (demand for validation). However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

What is a validation?

It is a demand that the DC produce competent legal evidence you owe the alleged amount. A certified copy of a signed contract is an example. You may demand a validation at any time after you have been contacted by the DC. You are not limited to the initial 30 day window.

What types of debt collection practices are prohibited?

Harassment: Debt collectors may not harass, oppress, or abuse anyone. For example, debt collectors may not:

1) Use threats of violence or harm against the person, property, or reputation; 2) Publish a list of consumers who refuse to pay their debts (except to a credit bureau); 3) Use obscene or profane language; 4) Repeatedly use the telephone to annoy someone; 5) Telephone people without identifying themselves; 6) Advertise your debt.

False Statements: Debt collectors may not use any false statements when collecting a debt. For example, debt collectors may not:

1) Falsely imply that they are attorneys or government representatives; 2) Falsely imply that you have committed a crime; 3) Falsely represent that they operate or work for a credit bureau; 4) Misrepresent the amount of your debt; 5) Misrepresent the involvement of an attorney in collecting a debt; 6) Indicate that papers being sent to you are legal forms when they are not; 7) Indicate that papers being sent to you are not legal forms when they are.

Debt collectors also may not state that:

1) You will be arrested if you do not pay your debt; 2) They will seize, garnish, attach, or sell your property or wages, unless the collection agency or Creditor intends to do so, and it is legal to do so; 3) Actions, such as a lawsuit, will be taken against you, which legally may not be taken, or which they do not intend to take.

Debt collectors may not:

1) Give false credit information about you to anyone; 2) Send you anything that looks like an official document from a court or government agency when it is not; 3) Use a false name.

Unfair Practices: Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not:

1) Collect any amount greater than your debt, unless allowed by law; 2) Deposit a post-dated check prematurely; 3) Make you accept collect calls or pay for telegrams; 4) Take or threaten to take your property unless this can be done legally; 5) Contact you by postcard.

You have rights. But only YOU can assert them.

First answer by anonymous. Last edit by ID0000000000. Question popularity: 235 [recommend question]