If you have ever been really late on a bill, one of the things that you know is that bill collectors are going to be calling you to collect on that bill. It’s not something that is pleasant. But did you know that there are rules that debt collectors have to follow?
I found an article about debt collection and debt collectors on Credit Sesame. Here is a quote from that article that you may find interesting and helpful when dealing with a debt collector. The rest of the article talks about some of the things that debt collectors cannot do and what they can do.
Rules for Debt Collectors
Some types of collections are illegal in some states. For example, payday lending is illegal in 15 states. In eight of those states, the law also specifies that noncompliant loans do not have to be repaid. So if you are a resident of a state where payday lending is illegal and someone is trying to collect a payday loan debt, they may be violating state law. The Consumerist explains. Another advocacy organization, the Consumer Federation of America, provides information about the legality of the loan and where you can make a complaint. Lenders continue to battle the legality of internet-based loans, but for the moment, the governing law is that of the state in which you live. Physical address on a tribal reservation does not exempt the lender from the law.
A debt collector must send you a validation notice within five days of contacting you. That means they must send you a document that shows basic information about the debt and what you can do if you think you don’t owe it. You then have 30 days to dispute it.
Having a debt collector on your back can be a problem. But it can help to know the things that are in this article so you know your rights and the things that a collector can and can’t do. Knowing this information gives you power and helps you with fighting back if necessary. It won’t get rid of the debt but it can stop the calls.