List All the 11 Consumer Rights You Should Know When Debt Collectors Call

Introduction

Anxiety and irritation can reach peak levels when a debt collector calls. Don't fret, though, if a collection agency rings your doorbell. Please do not wait for the phone calls to end before planning how you will respond to them and ultimately settle your debt. One must know their legal protections when dealing with debt collectors. To help you formulate a plan for dealing with a debt collector, let's go through what that person can and cannot do under the law—several regulations imposed on the debt collection industry limit what can be stated or done. Under the FDCPA, debt collectors are prohibited from engaging in harassing or threatening behavior and providing inaccurate or misleading information.

11 Consumer Rights You Should Know When Debt Collectors Call

Debt collectors are limited in what they can and cannot say by numerous laws. The FDCPA prohibits debt collectors from using unfair, abusive, or deceptive practices collecting from you. The following are some examples of these safeguards:

You Can Ask a Debt Collector to Stop Calling

The most straightforward strategy to prevent debt collectors from calling is to send a letter declaring that you do not want to be contacted. Yes, that is how simple it is. After receiving your letter, the collector may make one additional written contact to advise you of their next steps (if any).

You Can Ask the Collector to Call Only at Convenient Times

Debt collectors are restricted to calling between 8 a.m. and 9 p.m. That time slot might not work for you, though, if you cannot meet before 10 a.m.

You Can Ask the Collector to Verify the Debt

Debt collectors are required by law to let you know immediately upon first contact whether or not you have the right to dispute the debt. The next step is to confirm your debt ownership by requesting debt validation within 30 days.

You Can Claim Incorrectly Reported Debts

To comply with the FCRA, all the information in your credit report must be accurate, current, and verifiable. You can have incorrect collection accounts removed from your credit report by disputing inaccurate information with the necessary credit bureau.

You Have the Right to Stop Collection Calls to Your Job

Debt collectors are not allowed to call or visit your place of employment if they know or should know that you are working there. Debt collectors should be gently asked to stop calling the office. It is possible that a letter could serve as the official confirmation of your request.

Right About Debt Privacy

Debt collectors are authorized to contact certain third parties to locate you if they cannot do so directly; however, they are only allowed to make one attempt to contact each party. Even when attempting to gain contact information from you, collectors are forbidden from disclosing your debt to anyone, including third parties.

The Debt Collector Owes You the Truth

Data collectors are prohibited from providing inaccurate results. Nobody has the authority to accuse you of wrongdoing or to pretend to be a government official or legal representative. No one may fraudulently assert a document is not a legal form when it is, or misrepresent a record as, a legal form.

You Don't Have to Pay Any More Than What You Owe

Unless otherwise permitted by law in your jurisdiction, the collector may not add interest or fees to your account. You have the right to dispute an amount you believe to be excessive.

You Can Choose Which Debts to Pay

You can specify which debt you want your payment to be allocated toward if you owe a debt collector money for more than one loan. The FDCPA expressly prohibits charging a fee on a debt that is in dispute.

You Can Avoid Payment on an Expired Debt

A creditor only has so much time to launch a lawsuit against you before the statute of limitations expires. Different debts and jurisdictions have various regulations and laws. After the statute of limitations has passed, you are still legally bound to fulfill the obligation, but you are under no immediate pressure to do so.

Freedom to Sue, a Collector Who Disobeys Your Rights

You have one year from the date of the illegal action to launch a complaint against the debt collector in state or national court. Receiving compensation for actual losses, such as lost wages, punitive damages (up to $1,000), and legal fees, is possible.

Conclusion

It's best to be prepared for a debt collection encounter. Debt collectors must know the appropriate processes to follow while pursuing payment on an old account. If you're behind on your payments, a debt collector can only contact you and your references in specific ways. Learn about the safeguards that exist for your rights and how to put them into practice. Try not to put off meeting your monetary responsibilities.