Collection Agencies, Debt Collectors, Credit Disputes and Your Rights
If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "debtor." If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a "debt collector." You should know in either situation, the Fair Debt Collection Practices Act requires debt collectors treat you fairly by prohibiting certain methods of debt collection. Of course, the law does not forgive any legitimate debt you owe. Below are answers to commonly asked questions about your rights under the Fair Debt Collection Practices Act.

What debts are covered?
Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for credit and charge accounts.

Who is a debt collector or collection agency?
A debt collector is any person or agency, other than the creditor, who regularly collects debts owed to others. Under a 1986 amendment to the Fair Debt Collection Practices Act, this also includes attorneys who collect debts on a regular basis. Most collection agencies will have an attorney working in their office and use this amenity to call a debtor and advise they're calling "with the law offices of...". This is a scare tactic commonly used by collectors as debtors are more inclined to believe the issue is escalated coming from an "'attorney's office".

How may a debt collector contact you?
A collector or agency may contact you in person, by mail, telephone, telegram, or FAX. However, a debt collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector may not contact you at work if the collector is aware that your employer disapproves. You can also write a cease and desist letter if you're being harassed by a collection agency daily. Ask our certified credit counselors for more information on how we can help.

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