A debt collector is a person or company that is in the business of collecting unpaid debts on behalf of creditors. Creditors are the entities to whom the debt is originally owed, such as a bank, credit card issuer, or medical facility. Debt collectors may work for a collection agency or be self-employed.
The main task of a debt collector is to contact individuals who have unpaid debts and to negotiate payment arrangements or settlements. This may be done through phone calls, letters, or in-person visits. Debt collectors may also take legal action to collect the debt, such as filing a lawsuit or garnishing wages.
When collecting a debt, a debt collector is typically allowed to contact the borrower during specific hours of the day, usually between 8 a.m. and 9 p.m. and can not use any abusive language or threaten violence. If a debt collector contacts you, it’s important to know your rights under the Fair Debt Collection Practices Act (FDCPA).
Under the FDCPA, a debt collector must:
- Identify themselves as a debt collector and inform you that any information obtained will be used to collect the debt.
- Inform you of the amount of the debt and the name of the creditor.
- Provide you with a validation notice that includes information about how to dispute the debt, if you believe it is not yours or the amount is incorrect.
- Not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., or at your place of employment if you have requested them not to.
- Not harass or threaten you or use abusive language.
- Not make false or misleading representations, such as claiming to be an attorney or threatening to take legal action that they do not intend to take.
If a debt collector violates any of these rules, you have the right to sue them in court. If you have been contacted by a debt collector and believe that your rights have been violated, it is a good idea to contact an attorney who specializes in consumer law.
It’s also worth noting that if you find yourself in a situation where you can’t pay your debt it is a good idea to take a proactive approach and try to negotiate a payment plan with your creditor before the account is turned over to a debt collector.
Views: 28