These 11 words, when used correctly, can provide meaning. Don't rush to pay debt collectors. Validate your debt and know your rights. Debt collection tactics can be annoying at best and predatory, or even illegal, at worst.
A debt collector is a person, agency, or company responsible for collecting money due, usually in an overdue account. Debt collectors can call you or send you notices by mail, email, or text message about a debt. When a debt goes unpaid for several months, the original creditor often sells it to an outside agency. The buyer is known as an external debt collector.
The Fair Debt Collection Practices Act, which establishes rules for the collection of consumer debts, generally applies only to external debt collectors. Just as you wouldn't sign a contract without understanding its terms, don't rush to make a payment when a debt collector contacts you. Take the time to discuss your options for paying off debt in the form of a collection. Debt collectors can pressure you to act quickly. Don't pay, don't promise to pay, and don't give out any payment information that the collector can use later.
Ask for information about the debt and tell them that you will call back to talk about it later. When the original creditor sells a debt to a third party, who may resell it again, and so on, record keeping is often forgotten. Many debts sold contain errors about the amount due or even about who owes it. Request a validation letter from the debt collector if you don't receive it within five business days of the first contact.
It should include details about the debt, the collection company, and how to contest the debt. Gather your own records about the debt, if it's yours, including information about the original creditor and their payment history. Keep a good record of communications with the debt collector. You may want to use certified mail for the best documentation.
Debt collectors can't deceive you about who you are, how much money you owe, or the legal repercussions of not paying your debt, for example, threatening to arrest you. Learn about your federal and state protections in the debt collection process. You can file a complaint with the CFPB if your protections under the Fair Debt Collection Practices Act have been violated. Your state may offer additional consumer protections.
Your state's attorney general and the Federal Trade Commission are good resources. Whether sending a letter to debt collectors to request more information about the debt or demanding that a debt collector stop contacting you, know how to exercise your rights as a consumer and don't hesitate to do so. You have the right to tell a debt collector to stop contacting you. However, stopping contact won't make the debt go away. You could still face a debt collection lawsuit.
Ignoring a lawsuit for delinquent debt puts your salary, bank account or property at risk. Worse yet, you may also lose the ability to dispute debt. Some debt experts suggest that the phrase, “Please stop calling and contact me right away” will take control away from debt collectors. But there's nothing magical: if you ask a debt collector to stop contacting you, they must comply with the law.
To record your request, send a letter to the collection company by certified mail with an acknowledgment of receipt. Yes, debt collectors can sue you, and if that happens, don't ignore it. The lack of a response could result in a judgment against you and actions such as garnishing your salary or placing a lien on your property. Read all documentation and follow all instructions to respond. Many Americans who are sued for credit card debt use a motion to force arbitration to take their case out of court and submit it to arbitration.
In this blog, we'll explore this phrase, its origins, how to use it, and what it means for your rights as a consumer. This phrase derives its power from the Fair Debt Collection Practices Act (FDCPA), a federal law enacted in 1977 to protect consumers from abusive debt collection practices. During the account transfer, it's common for the collector to lose the proper documentation and evidence needed to validate a debt. If you believe that the debt collector is committing unfair practices or is not sure of your rights, seek legal advice from a Mississippi consumer protection attorney.
The Fair Debt Collection Practices Act (FDCPA), a federal law that protects consumers from abusive debt collection practices, guarantees their right to request that they stop to communicate. Debt collectors usually file a proposed sentencing order in absentia; it's just a proposal, not an actual order. We understand the laws and regulations that govern debt collection practices and can provide you with legal representation to protect your rights. When you ask a debt collector to stop communicating with you, it may be easy for you to lose control of your debt.
Under the Fair Debt Collection Practices Act (FDCPA), if you ask a debt collector to stop contacting you, you must do so. If you need help drafting a cease and desist letter or need guidance on how to deal with debt collectors, consult an experienced consumer protection attorney at Ware Law Firm. If you reach an agreement on a payment plan or to settle the debt for less than the amount due, get the agreement in writing so that you can hold the collector responsible.