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#debtcollection #money #finance - Debt Collection Agency

According to the Federal Trade Commission, debt collectors are one of the most complained about businesses and with good reason. Few people have positive experiences dealing with debt collectors. Even the rare nice ones can be a nuisance. But it’s typically cheaper for businesses to use collectors, so it’s not likely that these types of accounts are going anywhere soon.

 

What is a Debt Collection?

 

A debt collection is a type of account that’s been sent to a third-party debt collector. Debt collectors are people who make a living collecting unpaid debts for others. The original company with which you created the debt most likely sent the account to the collection agency after you missed several payments. From a business perspective, it’s often cheaper for companies to hire debt collectors than to spend their own resources pursuing payment on a such a delinquent account.

 

Different creditors and lenders have different policies for sending accounts to collections. Reviewing your credit card or loan agreement will give you some information about your creditor’s timeline. Many credit card accounts are sent to a collection agency after 180 days of non-payment.

 

What to Expect When You Have a Debt Collection Account

 

In their attempt to collect from you, debt collectors will call you, send you letters, and place the collection on your credit report. If they have your work phone number, they’ll even call you at your place of employment unless you let them know your employer doesn’t approve of those calls. Some collectors have been known to show up at a person’s home in their attempt to collect a debt. Surprisingly, that’s legal.

 

Debt collectors may call you several times a day, especially if you don’t answer their phone calls. However, collectors are forbidden from calling you back-to-back in an attempt to annoy you. Debt collectors can only call you between the hours of 8 a.m. and 9 p.m. your local time.

 

When a debt collector has a hard time reaching you, they may call your friends or neighbors to make sure they have the correct contact information for you. They’re not allowed to reveal that they’re collecting a debt and they can’t contact the same person more than once.

 

Debt collectors will also send bills to the address they have on file for you. In their first bill to you, they have to notify you that you have 30 days to request validation for the debt. That notice may also be given to you over the phone if a phone call is the first contact the collector has for you. If they don’t have the correct address, you may never receive a notice of the debt. And if the collector doesn’t have your correct phone number or address, you may not find out about the account until you see it listed on your credit report.

 

Debt collectors are required to abide by the Fair Debt Collection Practices Act, or FDCPA, when they’re collecting a debt from you. However, collectors are well-known for violating this law.

 

Article Source:  LaToya Irby – www.about.com

 

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