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Collection Agencies: Understand Your Rights as a Consumer

what is a collection agency
Businesses often sell their delinquent accounts receivable to a debt collection company and your situation is complicated

April 29, 2022 – Hispanic Solutions Group

Businesses often sell their delinquent accounts receivable to a debt collection company and your situation is complicated. While it can be frustrating and worrying to fall behind on payments, when calls from collection agencies start, adding a whole new level of stress to you. In that case, you understand what rights you have as a consumer, learn what collection agencies can and cannot do,

then take the necessary steps to resolve the problem.

Here are the rules of the debt collection process implemented to protect consumers.

It is well known that the Federal Trade Commission (FTC) enforces the Practices Act

Fair Debt Collection Act (FDCPA) in the United States. The FDCPA prohibits debt collectors from using abusive, unfair, or deceptive practices when trying to collect a debt.

The FDCPA considers a debt collector to be anyone who regularly collects debts from others. This means that collection agencies, attorneys who collect debts, and companies that buy debts and then try to collect them are covered.

The FDCPA It applies to personal, family, and household debt, including money you owe on credit cards, car loans, medical bills, and your mortgage. It does not apply to debts incurred from the operation of a business.

When a debt collector calls, they must follow up within five days with a validation notice; written. This notice should specify the name of the creditor you owe money to, how much you owe, and what to do if you think you don’t owe the money.

You must respond in writing within thirty days of receiving the notice of debt to prevent the collector from taking action or contacting you. If you have any proof that the debt has been paid, you must also provide that. Your letter and any evidence disputing the debt must reach the collector’s place of business within thirty days.

You may want to talk to the debt collector at least once to see if you can

resolve the problem, but if you decide you don’t want the collector to contact you again, document it in writing. Sending a letter does not resolve the debt and will not stop action to collect the debt, but it may affect how the collector communicates with you. If you are represented by an attorney regarding the debt, the debt collector must deal with the attorney and NOT with you.

The Consumer Financial Protection Bureau (CFPB) updated the practices bill collectors use when contacting consumers and what people can do.

What collectors CAN and CANNOT do:

They MAY contact you by phone, letter, email, text, or social media as long as they identify themselves as debt collectors.

You MAY NOT pretend to be someone else, such as a government agency or credit reporting company, or use a false company name.

They CAN contact you at work unless you tell them you can’t take calls there.

You CANNOT call before 8 am OR after 9 pm (Unless you agree)

CAN contact other people about you to find your

address, phone number, and place of employment, but you MAY NOT contact them more than once or discuss your debt with them (except with your spouse or their attorney).

THE DATA.- The FDCPA details more practices that are off limits to debt collectors, including harassment, false statements, and unfair practices.

What to do when dealing with a collection agency

Keep track of all calls you receive from a collection agency and keep all written statements. Do not provide personal or financial information until you have confirmed that the collection agency is legitimate. If you can agree to pay monthly or reduce your debt, get the details in writing. When you pay off your debt, be sure to obtain and keep documentation of the resolved debt.

What should you do if you are sued for a collected debt?

You do not ignore a court summons. A debt collector can sue to collect

a debt and a court judgment may result in third parties, such as your bank or employer, provide funds to pay off your debt. If you don’t show up in court, you’re losing chance to fight the embargo. Make sure you or your attorney respond to a lawsuit by the date on the court papers.

What should you do if a debt collector breaks the law?

If you believe a debt collector has broken the law in their dealings with you, you have one year

from rape to sue. Remember that even if the debt collector breaks the law, a legitimate debt does not go away.

There are government agencies you can turn to for help: In the United States, your state Attorney General’s office, the FTC, and the CFPB can help. Many states have their own debt collection process laws and the Attorney General’s office can offer assistance.

Debt collection is also an opportunity for scammers to collect personal information by posing as credit or debt relief services, which should be reported to the authorities.

If you have any questions related to finances, credits in the United States and other related issues, but do not know who to turn to, contact us by going to Hispanic Solutions Group , writing to info@hispanicsolutionsgroup.com .

If you need to make an appointment you can ask here or accessing financial information on YouTube, the credit channel ,  our specialists in charge Jessica Aliaga-Froelke will be informing you of any concerns regarding this and other financial issues of general interest and guidance as in this topic, today we provide you with the following report so that you can make your most important economic decisions, also him We invite you to follow our social networks: LinkedIn , Facebook , Twitter , tiktok and instagram.