A debt collection agency or creditor must verify you owe a debt before beginning collection practices against you. This verification process often involves just a letter sent through the mail. If you don't respond, the creditor or debt collector considers the debt valid and proceeds with collection practices. The debt collection process involves an escalating series of contacts from simple written requests to phone calls and possibly civil litigation.
Contact For Collection
Once a creditor or collection agency verifies the debt in question is yours, collection practices begin. These practices vary depending on the collection agency or creditor pursuing you but usually involve phone calls, emails and standard mail letters. Phone calls may involve an actual representative contacting you to secure payment or an automated service designed to provide you with the contact information of a collections representative. Collection agencies and creditors must comply with the Fair Debt Collection Practices Act when contacting you about a debt. Phone calls may only take place between 8 a.m. and 9 p.m., according to the Privacy Rights Clearinghouse website.
Seizure of Property
If the debt in question relates to a secured asset like an automobile, the next step for a creditor after verification of the debt involves repossessing the property. A secured creditor may make phone calls in attempt to collect the debt prior to repossessing the property for a short period of time. You may be able to stall the repossession process by remaining in contact with your creditor and explaining your financial situation. The only thing that will stop the collection process for good is bringing the account current.
Illegal Collection Practices
It is illegal under the Fair Debt Collection Practices Act for a creditor or collection agency to harass you while attempting to collect on a debt. A creditor must inform you in writing or over the phone when communication is in regards to the collection of a debt, and the creditor may not use foul language when communicating with you. It is also illegal for a creditor or collection agency to impersonate law enforcement, threaten legal action when no such action is forthcoming or create documents that appear like official legal documents when these documents are, in fact, not.
Consumer Collection Rights
You have the right to refuse contact from a creditor or collection agency regarding a debt. You must make a request in writing for the creditor or collection agency to cease all phone or mail communication with you regarding the debt in question. If the creditor or collection agency refuses to comply with your request, you may file a complaint with the attorney general's office in your state. A debt collection agency that fails to comply with state and federal regulations for the fair treatment of consumers risks losing its license to operate.
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