Know Your Rights with Collection Agencies

Collection agencies make their money by collecting a debt to one of its customers. In exchange collection agency debt collection receives a commission on the amount of money that can be recovered.

Therefore, if the issuer (collector) receives a call on an account that is not correct, do not think you can call the CA to obtain the correct item. I do not care if the information is correct or not, they just want your money ... ifIt is the duty or not.

They use various tactics to collect the debt, however, his preference is to use the phone. We will call and harass you until they find a weakness that scares you and then use it to impose a payment from you.

Another tool in their arsenal is the collection point. That letters be sent to the threats in the hope that you are scared enough to pay them. Usually do this with the threat: "If you do not pay thatlegal action. "

Automatically imply that legal action means there will be in court. In fact, demand is in every action that illegal.Although this can be very intimidating, keep in mind the limitation periods of assumed debt.

The requirement varies from state to state, but this is another factor to consider. If this is a very old debt ... it does not legally have the ability to make aCourt ... if it is within the statute of limitations, is a threat that may mean.

In general, if the debt is less than $ 1k, it is very unlikely to go through the time and money it would take to bring the matter before the courts. However, if the amount owed is in the thousands, and within the statute of limitations ... you need to know what their rights through the Fair Debt Collection Practices Act (FDCPA), andis taking a little "lighter. To know your rights under the FDCPA, please visit:

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

Another thing to read is the Fair Credit Reporting Act, FCRA describes the way in which to register and responsibilities of data furnishers, and responsibilities of credit bureaus. You can read about it here:

http://www.ftc.gov/os/statutes/031224fcra.pdf

I know theseare extremely boring to read, but it's in your best interest to be knowledgeable of the laws governing their status before engaging in combat with an "enemy" who knows all the rules, but not always play by them.

In my next post I will say what to do when he gets a charge call. But for now, class is dismissed, and their task is to read guidelines for FDCPA and FCRA.

DING!

(This was the starting bell)

* Class* Runs screaming from the room