What Debt Collection Consists Of

Basic Information on Debt Collectors

If you fail to pay your debts you may be in for a debt collection. If you fall behind on your payments for a purchase or to repay a loan, your debt collector may:

* Contact you in writing, by phone or otherwise to demand payment, accept partial payment, re-negotiate the terms of payment, threaten legal actions, etc.,

* Turn your account over to a collection agency,

* Repossess the goods which you are purchasing or other goods in your possession which you pledged as collateral, if the creditor has a security interest in the goods.

* Bring a lawsuit against you seeking the amount owed plus the costs of the suit; usually including attorney fees.

What are my rights if I am contacted by a debt collection agency attempting to collect a debt?

If you are contacted by collection agencies and/or persons collecting on behalf of the debtor, the Federal Fair Debt Collection Practices Act provides you with several rights. (The FDCPA does not apply to the debtor when collecting on his own behalf).

These rights include: Your right to advise the collection agency that the debt is in dispute and request verification of the debt. You must make your request within (30) days of the date you received notice. All requests should be dated and in writing (see sample below). The collection agency must then obtain verification of the debt and provide you with copies of that verification.