Dealing with debt collectors can be the worst experience of your life.
A debtor needs to know what action can be taken by him while dealing with debt collectors.
If a debtor has missed out on his payments then the credit card debt collectors have the right to demand for their payments or if the need be sue the customer.
However, there are laws which protect the rights of both the creditor as well as the debtor.
Actions which can be taken by creditors: As per the federal law, there are directions given by the government about how and when a debt collection process can be started.
The debt collectors can contact the consumers between 8a.
m and 9p.
m.
The caller must disclose his or her name and the name of the agency they are representing.
The collection agency has the right to report negatively on a consumer's credit report if he is defaulting and they also have the right to sue the debtor.
The creditors have the right to call others in an attempt to recover their money from the debtor.
Things that a creditor cannot do: A debtor cannot be contacted at work by the debt collection agency if he has asked for it.
A debt collector agency is not allowed to harass debtor, lie to them, use abusive language or make use of any unfair tactic while trying to collect the debt.
All debt collections should stop if the debtor sends a written request to stop collection calls.
In this case they will only get in touch with the debtor when they will be filing for a lawsuit against him.
A collection agent is not allowed to pretend to be an attorney and to trick the debtor into accepting collect calls.
Any statement saying that a debtor has committed a crime or to get any public assistance cut off.
Consumer rights: The FDCPA applies to collection agencies who collect on other's behalf.
There are laws which apply to in-house debt collectors.
As per these laws a debtor is allowed to inform the collector that all future correspondence should be in writing and not to call at the work place.
A consumer has the right to know about the amount that is due on the account and related details like the original amount and the interest rate and fee that has been charged.
Any undue amount charged on the account is not allowed by law.
In case the collector offers to negotiate with the debtor, the debtor can request for the deal in writing along with the terms and conditions of the agreement.
It is possible for a debtor to sue the debt collector if the FDCPA has been violated.