The Importance of Knowing Your Debt Collection Rights

Consumer debt is a growing problem threatening the financial stability of families across the country. Many are living paycheck to paycheck and this can cause an enormous amount of stress. The fact that you know you have unpaid debts is stressful enough. However, in many cases debt collectors are adding undue stress to the situation by using sometimes unscrupulous methods in trying to collect the debt. The good news is that there are rules that debt collectors must follow when trying to collect a debt. Therefore, it is important that you are aware of the debt collection rights that protect you as a consumer.

Debt Collection Rights

When and Where You May Be Contacted

Just because you owe a debt to someone doesn’t give them the right to pursue you in any way they want. This is one of the most important debt collection rights you have as a consumer. The debt collector cannot just contact you any time they feel like it. There are guidelines they must follow.

  • Cannot contact you outside normal business hours, too early or too late at night.
  • Cannot contact you at work if you say not to do so.

If a debt collector does contact you before 8am or after 9pm, then you should definitely document it. Abuse of your debt collection rights will not be tolerated.

No Harassment or Abuse

Another important part of your debt collection rights protects you from harassment or abuse. A debt is a debt but that does not give someone the right to verbally threaten or abuse you regarding the debt. They cannot keep calling you over and over about a debt. They also cannot use threatening language when trying to collect the debt. That is considered abuse and it is illegal for them to use such methods. Regardless of the fact you owe money, you are still afforded the right to be treated with basic respect and decency by the debt collector. For example, they cannot lie to you and make threats suggesting you will be arrested. Do not let them intimidate you with abusive tactics. You are protected against these methods.

Who Debt Collectors Can Contact

As part of your debt collection rights, a debt collector is required to notify you in writing of the debt you owe. As far as collecting friends or relatives, they can only do so in trying to locate you. For example, they can ask for your address or phone number. They cannot, however, discuss anything specific about the fact that you owe a debt. That is not allowed. The only person that a debt collector is allowed to discuss your debt with is your lawyer, if you have retained one to represent you in the matter. Another important point to remember is that you have the right to not be contacted by debt collectors. You can notify them that you have hired an attorney and from that point, any contact they make should be with your attorney. Even if you do not hire an attorney, you can still request that the debt collector not contact you and they have to honor your request. This is part of your debt collection rights.

What Information they must Provide

When a debt collector notifies you of a debt, they must include certain pieces of information listed below.

  • The amount you owe.
  • The name of the creditor you owe.
  • Instructions to dispute the debt if you feel it is not accurate.

They cannot claim more than you owe. As part of your debt collection rights, you have the right to dispute a debt if you do not believe it is accurate. For example, if you don’t think the debt is legitimate, you should dispute it. With the growing number of cases of identity theft, it is important that you dispute any debt that you do not think is yours. This isn’t the only reason to file a dispute though. Another reason would be if you don’t believe the amount the debt collector is claiming is accurate.

Mistakes do happen, after all. If you feel it is not accurate, dispute it. When the debt collector notifies you in writing of the debt, they should also include information regarding what you need to do if you feel there has been an error or that you don’t owe the debt at all. Perhaps it was already paid but had not been properly credited. If you do dispute a debt, your debt collection rights require the debt collector to investigate the matter and provide you proof that the debt is legitimate and verify the amount, etc. They should not contact you until they have investigated the debt and confirmed it. Once that is complete, they should notify you in writing of their findings. If the debt is legitimate, then they should provide you with documentation.