Little Known Debt Collection Rights Debt Consolidation

Little Known Debt Collection Rights

November 3rd, 2009 Admin Leave a comment Go to comments

With spiraling levels of default, having a thorough knowledge and understanding of debt collections rights and responsibilities is fundamentally important. The Fair Debt Collection Practices Act was introduced to protect consumers from unscrupulous creditor practices. Debt collection agencies must now operate within this new set of rules and boundaries. This article seeks to provide individuals who are struggling to keep-up with repayments on unpaid credit card debt, medical bills and unsecured loans with this understanding.

Debt Collection Rights – Unpaid Credit Card Debt, Medical Bills and Unsecured Loans

The Fair Debt Collection Practices Act gives the debtor the opportunity to stop contact from debt collection agencies. Whilst a phone call will not suffice, submitting the request in writing will mean that this practice must stop. It is important to keep a copy of any correspondence and submit the request via certified mail for future reference and provation purposes. It is important to appreciate this will not mean that the debt goes away; the debt collection agency can still take legal action to collect the money they are owed.

Debt Collection Agencies – Dispute Debts Under the Fair Debt Collection Practices Act

A number of consumers find themselves in the unfortunate position of being pursued for money that they don’t owe. For example, incorrect information is held or the previous occupant has vacated the premises. A fundamental debt collection right is to send a letter to the creditor within 30 days of receiving correspondence. Once again, this correspondence should be sent via certified mail.

Debt or Bankruptcy Attorney – Debt Collection Agencies Must Contact the Legal Representative

If the debtor enlists the services of an attorney, it is a requirement of the Fair Debt Collection Practices Act that unsecured creditors contact the attorney (not the borrower) directly. The laws are specific to each state so a suitably qualified legal representative can help to explain precisely what these are. The National Association of Consumer Advocates will be able to provide a list of suitably qualified attorneys.

Understanding Debt Collection Rights – Fair Debt Collection Practices Act 1977

Most consumers are not aware of their legal rights. Debt collection agencies must operate within specific Federal Trade Commission guidelines or they are breaking the law – report them. It is important to gather evidence to prove that a creditor is breaking the law. A total of 35 U.S. states allow the debtor to record and use creditor telephone conversations as evidence. Also, a debt relief program, such as a Debt Management Plan or debt settlement program, can also stop creditor harassment.

Sources

“Fair debt collection practices.” Federal Trade Commission.

Lazarony, Lucie. (April 15, 2004). “10 ways to fight back against a debt collector.” The Boston Globe.

Relief Debt Systems