THIS PAGE MAY CONTAIN AFFILIATE LINKS. MEANING WE RECEIVE COMMISSIONS FOR PURCHASES MADE THROUGH THOSE LINKS, AT NO COST TO YOU. PLEASE READ OUR DISCLOSURE FOR MORE INFO.
Credit Shout may collect a share of sales or other compensation from the links on this page.
Chances are that the majority of people who are experiencing credit card debt are going to be dealing with creditors at one time or another throughout the duration of the relationship. There are many things that customers should be aware of when dealing with credit card debt collection.
About Debt Collection Agencies
Debt collectors, like many other organizations have rules that they must follow and regulations that they must adhere to. When a debt collector contacts you, don’t be afraid – use these techniques to ensure that your rights are being adhered to.
The first contact from the creditor will be to inform the customer that they owe a significant amount of debt. In the next five days following this phone call a letter will be dispersed to the client outlining the amount that is owed and who payments can be made to.
Next, the debtor has to make the decision to accept and pay the debt, or negotiate the debt or challenge the entire debt that is being made as a claim against the debtor.
There are many ways that a debt collector can contact the consumer, these include:
• Through email or electronic mail
• Through postal mail or registered mail to ensure that the correspondence has been received
• Over the telephone at the residence or at the workplace
• Through the use of fax
• Debt collectors can even contact the debtor in person
What is the Fair Debt Collection Process?
Although a debt collector is entitled to try and gain back the money that has been lost through the defaulting process, a debt collector is not allowed to harass anyone owing debt.
This is because you are protected by federal statutes ensuring that debt collection practices are fair. (You can learn more about the Fair Debt Collection Practices Act here.)
If you feel that a debt collector is harassing you, you are simply allowed to write a letter to the debtor asking the harassment to stop – in which case the creditor may only contact you to inform you that the harassment and contact will stop. In the future, contact can be initiated with your lawyer and legal action may be taken to ensure repayment of the debt that is owed.
Consumers need to realize that creditors are not allowed to contact debtors after 9 in the evening or before 8 in the morning, or at their workplace if the manager or owner condones this type of behavior.
The debt collector is not allowed to use any profane language or threaten arrest if the debt is not repaid in full. The debt collector is not allowed to misrepresent themselves or make the debtor pay for collect calls, or pay more than the amount that is owed.
Now that you know how to handle debt collectors and are aware of your rights, you can speak with them accordingly, pay debts and get it cleared from your credit report and improve your credit score.