3 Things to Know About Debt Collection Laws

When you have too many debts unpaid, it is a disturbing experience when you get collection agency calls at your workplace. It takes away your peace of mind. You are already in a challenging situation when in debt, but you could face greater trouble at your work. You might be wondering whether debt collectors can call you at your workplace. What are the other debt collection laws and borrower rights? What are the rights of the lenders?

The consumers are not defenseless when they are in debt. There are laws such as the Fair Debt Collection Practices Act (FDCPA) which has set certain rules and regulations that collection agencies should adhere to when your debt is sent to the collection agencies. The law covers medical bills, credit card debts, and car loans. However, you can avoid collection agency calls if you consolidate your multiple debts, and pay under a single payment system.

According to an article published on huffpost.com, there are numerous ways to cope with collection agencies. The borrowers can request the collectors to stop calling too many times a day. As per the rules of FDCPA, a collection agency should stop calling if borrowers send a letter requesting the same. The letter will not release you of a valid debt, but can put a stop to non-stop and abusive phone calls. Read on to learn more about debt collection laws, as well as the rights of a collection agency if you have an unpaid debt.

1. When can a collection agency call you?

The collection agency can call you during business hours or at a reasonable time. Now, this varies from one state to the other in the US. Usually, you can expect a collection call between 8 AM and 9 PM as per your local time zone. If you are busy working during the specified hours, not taking any measures to stop the calls, the debt collection agency can call your workplace.

The debt collectors have the legal right to communicate with you through emails, phone calls, standard mail, and fax. The FDCPA does not impose any restrictions on text messages. That is because mobile text messages were nonexistent when FDCPA was passed in the year 1977.

You too have certain rights as a borrower. If a collection agency calls you at an awkward time, or does not follow the rules laid down by FDCPA, note each of the contact numbers from where the call initiated, especially if you get calls too many times in a day and that too occur beyond business hours.

You also have the right to inform the debt collectors that you do not owe as much money they are claiming. Make sure you do this in writing, so that the collection calls stop until your debt is confirmed. However, if the amount they are claiming proves to be true, then you will need to repay the entire amount.

2. Can a third party call you at your workplace?

Yes, they can call you at the office. However, if you do not like them calling you at work, inform them to stop the calls. However, you need to mention where and when they can call you to settle matters. If you have unpaid debts, you cannot avoid paying the same. Again, if an agency calls, and your manager picks up the phone, the collector does not have the right to repeat the call unless your manager gives such permission.

Stop incessant calls at your workplace through a written letter to the collection agency, stating your request. Your manager can tell them not to call you during working hours. You can always talk to your collection agency during lunch hours, or after office hours, whichever time is convenient.

Always receive collection calls, and make sure you repay what you owe. Else, a collection agency may inform that your creditor would sue you or take other legal actions if you do not repay the borrowed amount within a specified period.

3. What amount can debt collectors claim?

The collection agency can claim only the amount that you borrowed from banks or other lenders online. The debt collections usually will not ask you for more than you owe. When you get a written debt validation notice, the document must include the amount the agency claims you have borrowed from the lender. The collector cannot verbally say without proof that you owe more than you have borrowed.

If you have a hunch that the amount the collector is claiming is an inflated sum or incorrect, write an email or send a letter to the collection agency, notifying of the same within a month. In such a scenario, the agency will need to prove their claim in black and white. They will not call you until they come up with evidence or proof of what you owe. You can even disagree with the amount claimed after a month, but in that case, the collector has the right to call you, because you missed the 30-day time period.

When the debt is under dispute, because you think that claim is incorrect, the collection agency has to stop calling you until your claim is investigated and proved. The collection agency will verify the amount you have borrowed in writing before resuming collection calls. Once the collection agency sends you the verification report in writing, and if it is accurate, the calls, faxes, and emails will continue. This time, you need to answer the calls, and agree on a date to clear your unpaid debt.

Conclusion

There are legal rights of the lender, collection agencies, and borrowers. There are certain restrictions on how collection agencies communicate with you. This way, you can protect yourself from misleading practices. You can use the law to stop annoying or abusive calls, and other forms of communication. Then, you need to repay your debts even if you stop the calls. The amount you have borrowed must be repaid. The best way is to consolidate your multiple debts and become debt-free quickly.