For many, the idea of a debt going to collections is something they know is inherently bad, but may not know what this process actually entails. As such, familiarizing yourself with the collection process and what this means for you if you owe funds is critical. The following blog explores what you should know about this process and why connecting with a San Diego consumer lawyer is imperative to protecting your rights during these complicated matters.
What Does It Mean When a Debt Enters Collections?
If you are in debt and you receive a notice that your debt is in collections, it’s important to understand what this means. Typically, when you owe a creditor they will make numerous attempts to recover the money within the thirty days following your last missed payment. However, if their attempts to reach you have gone unanswered and the debt remains unpaid, they will likely sell your debt to a third-party collection agency.
Third-party collection agencies often buy debts for pennies but will do everything possible to recover the full worth of the debt owed.
What Are My Rights if My Debt Is In Collections?
If you owe a debt that has moved to collections, it’s important to understand what you are up against. Debt collectors have a reputation for being notoriously aggressive and going to extreme measures to collect the funds they are owed. As such, it’s imperative to ensure you understand the rights in place to protect you as a consumer. Unfortunately, many who owe a debt believe because they are in debt, they have no rights which is far from the truth.
Debt collectors must follow strict rules regarding their behaviors and how they can interact with consumers when attempting to collect a debt, as per the Fair Debt Collections Practices Act (FDCPA). This act outlines the unacceptable actions and allows impacted consumers to file a claim to recover statutory damages for violations they are subjected to. Behaviors that are prohibited include, but are not limited to, the following:
- Calling a debtor repeatedly in a short period of time
- Calling outside of acceptable hours (before 8 a.m. and after 9 p.m.)
- Using vulgar and threatening language
- Misrepresenting their status as a debt collector (pretending to be an attorney or law enforcement)
- Threatening to sue you if they have no intention to do so
- Disclosing your status as a debtor to others
- Lying about the amount you owe
When you owe a debt that has moved to collections, it’s important to understand your rights. Generally, you’ll find that if you are subject to harassment, connecting with an experienced attorney is in your best interest. At Barthel Legal, we understand how frustrating it can be when you are repeatedly harassed over funds you owe, especially when this harassment violates federal rules. Contact us today to learn how we can help you in these matters.
