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You are considered a debtor any time you borrow money through a personal loan, credit card, payday loan, or mortgage. We would all be able to pay our debts completely if the world were perfect. Almost everyone with debt will end up falling behind or missing a payment. If your payments get too far behind, your account may be sent to collections. You are protected from unfair or harassing debt collection practices - the Fair Debt Collection Practices Act ensures you are treated well. It is important to understand the rights and responsibilities that both you and the debt collection agency have.

The obligations of the collector

Original creditors or debt collection agencies that purchase your debt are required to treat you fairly. Collection agencies must contact you during standard working hours - between 8 am and 9 pm. Debt collectors cannot legally contact you at work if your employer informs them that they cannot. They are additionally prohibited from lying about who they are or the debt that you owe. The only reason the collector can talk to a third party is to get information on how to contact you.

The responsibilities you have

You also have responsibilities when you owe money to creditors. It is important to know what amount you owe and to whom. The best place to begin is securing a copy of your credit report. You are entitled, legally, to one copy of your credit report each year, from each of the three credit reporting agencies. Your responsibility is to inform any collectors if you have a lawyer. So there is a written record of the requests you have made, it is best to communicate with debt collection agencies in writing.

Liberties of the collectors

A debt collection agency is hired to collect the debt that they believe you owe. They have the right to call you during business hours. If you have an attorney, they have the right to talk to them about your debt. Finally, the agency can file a lawsuit against you if you are unresponsive to their communications.

The rights you have as a debtor

When you have debt, you have the right to complete and accurate information about the money you owe. In addition, you have the right to know exactly which debt an agency is contacting you about. You also are entitled to dispute any debt that an agency is contacting you about. Verbally or in writing, you can dispute any debt you owe within 30 days. You are entitled to get three pieces of information from the debt collection agency - the name, address, and amount owed of the original creditor. Falling behind on any debt can be a very frustrating situation. Take five minutes to breathe if that happens - it will help you take stock of the situation and keep your balance. You have rights and responsibilities, as does the debt collection agency that will be pursuing you.