Debt Relief
Debt Collector - Freedom Debt Relief
Debt collector summary:
A debt collector tries to collect owed money, often on behalf of someone else.
Debt collectors aren't allowed to harass you by calling repeatedly or at unsociable hours.
If a debt collector calls you, check that you owe the money before you do anything else.
Debt Collector Definition and Meaning
A debt collector is an individual or a debt collection agency who chases down unpaid debts. Debt collectors must identify themselves and give you information about the money they believe you owe. If a debt collector calls, check the debt and understand your rights before you agree to anything.
Key Features of a Debt Collector
A debt collector can pursue various types of unpaid debt, including credit cards, student loans, mortgages, or unpaid medical bills. Debts typically get passed to a debt collector after three to six months of missed payments.
What to Do if a Debt Collector Contacts You
If a debt collector contacts you, try to stay calm and keep a written log of all conversations, including the caller’s name and contact info. Ask the debt collector to send you a summary of each call, and don't be afraid to hang up if you aren't ready to talk.
Here are some practical tips for dealing with debt collectors:
Ask for written proof that the debt is yours. The debt collector is required by law to validate the debt. They have to give you certain information, like their full name and the company they work for. They also need to give details on the debt, including the amount owed and who it is owed to. Send a formal letter to the debt collector within 30 days of being contacted (and keep a copy). Demand proof that you owe the money and that the debt collector has the right to collect it.
Don't agree to anything until you fully understand your options. For example, you don’t have to offer a small payment in good faith. You don’t even have to admit that the debt is yours. In some cases, just acknowledging a debt could restart the statute of limitations and give them more time to come after you for the debt.
Your next steps depend on whether you owe the money:
If you believe that you don't owe the money, or that the statute of limitations has expired, dispute the claim. The statute of limitations is the number of years that you can be sued for a debt. The number of years depends on where you live and what kind of debt you owe. If the time has passed, you could simply ask the creditor to stop contacting you about it. If they sue you anyway, you could ask the judge to throw out the case.
If you do owe the money, try to negotiate. If you can't pay the debt in full, you may be able to negotiate the debt. The creditor might be willing to let you satisfy the debt for less than the full amount you owe. If you don't want to negotiate with creditors yourself, a credit card debt lawyer or debt settlement company could negotiate on your behalf. Get any agreements in writing.
You also have the right to tell the debt collector not to contact you at all. If you take this step, they can only contact you to inform you of legal action. This can relieve some of the stress, but it could take away your chance to negotiate.
Debt Collectors and Your Legal Rights
No matter the situation, debt collectors aren't allowed to harass, abuse, or lie to you. Here are some examples of your rights under the Fair Debt Collection Practices Act (FDCPA):
A debt collector can't contact you at unreasonable times. Generally, they can only contact you between 8 AM and 9 PM. If you tell them you're not allowed to receive personal calls at work, they can't call you there.
A debt collector may not threaten you or use abusive language. They can't make repeated calls, either—they’re only allowed to call you seven times in a seven-day period.
A debt collector may not publicly post about your debt on social media. They can use social media to contact you privately, but for the most part, they can't discuss the debt with people you know.
If a debt collector breaks these rules, you can file a complaint with your local state authorities, the Federal Trade Commission (FTC) or the Consumer Finance Protection Bureau (CFPB).
Debt Collector FAQs
How long do debt collectors take to respond to debt verification letters?
Under the terms of the FDCPA, debt collectors have five days from their initial communication with you to provide basic debt validation information. They may take longer than that to reply to more detailed debt verification requests. While there is no time limit for when they must respond to those requests, they are not allowed to continue collection activities until they respond.
How can I file a complaint against a debt collector?
You can contact the debt collector and ask them to stop, or you can sue them. You can also submit a complaint with the Consumer Financial Protection Bureau, or contact your state’s attorney general.
What is the most common FDCPA violation?
Attempts to collect debts that are no longer owed are common. Other common violations include harassment, making threats, excessive phone calls, and using false information.
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