If you owe money and haven’t paid it in a while, you may have received a letter from a debt collection agency. If you haven’t yet, there’s a good chance you will. The process of collecting on past-due debt that the borrower has neglected to pay is known as debt collection.
Before you answer the phone or make a payment, know what a debt collector is and how they effect you.
Please contact your lender immediately if you are having difficulty making your payments as a result of COVID-19 or believe that you will in the near future. It is possible for some lenders to offer short-term relief through hardship programs. These hardship programs may allow you to postpone or reduce your payments for a short period of time. This may bring some temporary comfort, but it does not imply that your debt has been paid off or forgiven in any way, shape, or form.
Those who have been adversely affected by the COVID-19 situation have some government protections in place as well. The $1,200 stimulus check handed to many Americans at the beginning of the pandemic, for example, is normally safe from seizure for payment of federal debt… State controls on debt collection also exist, with many states banning garnishment and preventing lawsuits from being brought by collection agencies.
Collection agencies and companies try to collect overdue debts from borrowers in the form of debt collection. In the event that you haven’t paid your loans or credit cards, you may be called by a debt collector.
Make sure you know your rights and what to do if you get a contact from a debt collector. Fair Debt Collection Techniques Act (FDCPA) prohibits debt collectors from engaging in abusive, unfair, or misleading practices when attempting to collect debt. To better understand your rights, we’ve compiled a list of frequently asked questions.
What you should know about debt collectors
Amounts of debt that are protected under the law
If you owe money on your credit cards, auto loans, medical bills, student loans, or a mortgage, the FDCPA protects you. Debts incurred by a company, on the other hand, are not.
When and where can I expect to hear from debt collectors?
Quite the contrary, in fact.
Except in cases where you expressly authorize it, debt collectors cannot contact you prior to 8 am or after 9 pm without your permission. In addition, they cannot phone you at work if you tell them that you are not permitted to receive calls at that location.
What is the best way for a debt collector to get in touch with me?
If you owe money, debt collectors can contact you by phone, mail, email, or text message.
If a debt collector wants to contact me, what can I do about it?
Ask the collection agency to stop contacting you in writing. A backup copy is a good idea. Consider using certified mail and paying for a “return receipt” if you want to send the letter. You’ll know exactly when the collector received it this way. Once the collection agency receives your letter, it can only contact you to indicate that it will no longer contact you or to inform you that it intends to pursue a specific step, such as filing a lawsuit. Inform the debt collector if you are represented by an attorney. It is up to your attorney, not you, to react to collectors’ correspondence on your behalf unless your attorney fails to do so in a fair amount of time. If you want to get the best attorney, click this link to book an appointment with Maor Levi עורך דין למחיקת חובות