Debt collection is a normal transaction when lenders try to collect loan repayments from borrowers. However, if you’re a consumer debtor who find it difficult to make your monthly payments the term may mean bad things. In fact, dealing with debt collectors can be one of your life’s most stressful experiences.
A bill collector might call you at any time using many collection techniques that oftentimes harass you or invade your privacy. Some consumers reported that the agencies even embarrass them by contacting employers or neighbors for a debt that isn’t rightfully theirs. If you’ve been treated unfairly by bill collection agencies recently learn how to protect yourself from their abusive collection practices.
Debt Collection Laws
If you’re expecting a debt collector, know that you’re protected by the Fair Debt Collection Practices Act (FDCPA). The FDCPA regulates how and when collection agents may contact you. They’re not allowed to use impolite and abusive language or any other techniques that might be considered unfair when they are trying to collect your debt.
The FDCPA also states that a collection agency must help you understand your rights. You can lodge a complaint against the company if you feel that they have violated your rights. Just remember to keep all of your communication and other relevant documents to back up your claim.
Debt Collection Statute of Limitations
There is a chance that a debt collector contacts you for an old debt you don’t even remember. In this case you need to understand the statute of limitations of the debt. If it passes the statute of limitations it’s legally called uncollectible and can’t be enforced in a court of law.
Generally the time period a debt can be collected is from 3 to 7 years. However, as the time period for the statute of limitations varies with type of debt and the state, you need to find the exact time period in the state you live.
If you’re called and pressured by a collection agency to pay an old debt then demand proof of legality of the debt from them. The agency has to give you information about the debt within 30 days. If they fail to do so they have no charge on you. Also, remember to contact credit bureaus to remove the debt from your credit report, if it is over 7 years old.
So, if you are dealing with a debt collector, now you know your rights and your position. Just don’t allow them to bully you into making a payment that you can’t afford.