Legal Services

Dealing with Debt Collectors

Maxing out your credit cards is ill-advised for a number of reasons. Not only does spending beyond your means damage your credit score, but it also increases the likelihood of a collections agency assuming your overdue payments. According to the Consumer Financial Protection Bureau, nearly 30% of American consumers grapple with collection agencies. Collectors are relentless on their quests for repayment too, often defaulting to aggressive tactics to secure repayment. Understanding your legal rights and knowing how to respond to these tactics can help protect your personal and financial well being.

Does a debt collection agency have the right to contact me directly?

Yes. Once your debt has been sent to collections, that agent or agency assumes to right to contact you via e-mail, phone call, text message and even social media. That said, the Fair Debt Collection Practices Act does set stringent guidelines on how agencies can utilize these communication channels to prevent consumers from experiencing any form of harassment including repeated phone calls, exposure of private information, threats and more.

Am I within my rights to question the identity of the debt collector who contacts me?

Absolutely. Attorneys even encourage you to do so. Verify the legitimacy of the caller by getting his or her name and the contact information for their employer.

Can I negotiate the terms of my repayment?

Your Plan Law Firm can help you navigate a repayment plan as legal time limits may vary.

What if I don’t recognize the debt the collector is calling about? Do I still have to pay for it?

Your attorney can help verify the debt by acquiring details from both the collections agency and the original lender. Consumers also have 30 days from when the agency first makes contact to request written verification of the debt. An obligation for payment would be determined after the legal investigation.

Can a collections agency sue me?

Yes. Collections agencies have a number of avenues they can take to acquire repayment, including filing a lawsuit against you or placing a lien against your property. If you are summoned, appearing in court is highly recommended.

Overall, being proactive is the best way to tackle a collections situation. We also suggest taking notes, or when possible, saving written correspondences, when speaking with debt collectors. Your Plan Law Firm can help you navigate court proceedings, repayment plans and resolving any other legal issues that arise from a diminished credit score.