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The Ins and Outs of Debt Collection
Do you know your rights?

The Fair Debt Collection Practices Act of 1977 regulates debt collection companies and how they can contact you about unpaid debts and your rights in the process.

Debt collectors cannot contact consumers at inconvenient times, such as before 8am or after 9pm, unless you give them permission.

If debt collectors contact you about a bill you don’t think is yours, you can send them a letter asking for written verification that debt is yours. You have 30 days from the time you are contacted to write them.

If you ignore a debt, you can have a civil suit filed against you. In Texas, you cannot have your wages garnished, but your credit scores can lower and you can be denied new credit. That’s the whole point of the credit rating system, to let lenders know how you’ve handled previous loans.

Some states have laws that license and govern debt collection practices. You can check your state attorney general’s office to find out the laws in your state.

The Fair Debt Collection Practices Act prohibits harassing, abusive or profane telephone calls. Under this federal law, no one is allowed to threaten to take your home or have you arrested for not paying your bills. They cannot leave voice mail messages on your home phone with details about your debt or call your job and/or relatives and friends about unpaid bills.

You have every right to negotiate a settlement on a debt you owe. You can do this yourself, but be smart about it, getting everything in writing first. It’s a good idea to go through a professional, trustworthy, debt settlement company, such as Elite Debt Management, to look out for your best interest. Your credit report can still report negatively, and there can be federal tax issues to deal with, so find out all you can before doing this on your own.

Filing for bankruptcy does cease all further collection calls and letters, but it’s a major step that will negatively impact your credit report for seven to ten years or longer.

Know your rights so you can handle your debts in the best possible way. United Credit Source has a Credit Specialist Team on hand to answer your questions and give you advice. We want to help you obtain a better financial lifestyle.