When a collection agency comes calling, it's important to be armed with an education about how collection agencies work and what rights you have. A collection agency may even have the wrong person. Just because you have a debt doesn't mean that a collection agency is correctly calling you about the debt it is investigating. It's important to get all the facts. Often, collection agencies are in a hurry. but don't let them fool you. Take your time to deal with the situation correctly.
Collection Agency Limits
Before you get too concerned, it's important to understand what a collection agency can and cannot do legally. If you owe a debt, it is your legally responsibility to pay the bill. However, credit agencies cannot threaten you. They cannot let your friends, boss or neighbors know that they are collecting a debt from you. That cannot take your money or confiscate assets or your paycheck to collect the debt. The government can take your check, though, and the bank can repossess your car on a car loan. A collection agency can and most likely will report your debt to the major credit bureaus, hurting your credit report. A company you owe a debt to can also take you to court.
Questions
Find out everything you can from a collection agency without giving any additional information on your part. Verify who the agency is are calling for and have the agency verify your Social Security information. Find out who the debt originates from and who owns the debt. Find out the full amount of the debt and any qualified legal fees. Ask the company to send proof of the debt. You have the right to dispute the debt and that will slow the process and make the collection agency verify the debt in writing.
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