Page 23 - Book8E

CHAPTER 3
Fair Debt Collection Practices Act
It probably comes as no surprise that if you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a “debtor”. If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a “debt collector”. Dealing with a debt collector can be one of life’s most stressful experi- ences. Harassing calls, threats, and use of obscene language can drive you to the edge. What’s worse, a collector may embarrass you by con- tacting your employer, family, or neighbors. You may even be hounded to pay a debt that is not rightfully yours. While collection agencies have a job to do, there are limits on how far a debt collector can go.
Tips for Dealing with a Debt Collector
1 . Know how the collection process works . Why are you being con- tacted by a collection agency? It usually means that a creditor has not received payment from you for several months. They have negotiated with another company or are using an in-house affiliate called a debt collector to attempt to get you to pay. Third-party collectors often purchase your debt for less than you owe, and your debt is now owned by the collector. A collector may also work for the creditor in return for a fee or a percentage of any money collected. In-house collectors that are affiliated with the original creditor work on behalf of the com- pany directly. Because the creditor has taken a loss on your account or because you are late with making payments, this negative information may show up on your credit report.
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