Do You Know Your Debt Collection Rights? Part 3
written by Credit-HQ ExpertIf the amount is wrong what do you do?
If you suspect the amount is wrong you must state in a letter you don’t owe the money being requested by the collector. Send the letter within 30 days of the day you got your written notification of the money owed. Send the letter to the collector. (15 U.S.C. 1692g(b)).
It may be annoying if the collector will not accept payments that are partial. This is especially so if you and the creditor have agreed to this arrangement. It is legal for the collector to ask for bigger installments in a shorter period. This may annoy you but it is legal. It is illegal for the collector to make false statements or use misleading methods to collect money you owe. But the collector may negotiate its own conditions without using illegal ways. If you propose a part payment because you are aware the creditor will accept the collector may not imply only a full payment is good enough. (15 U.S.C. 1692e)
On the whole collectors are not allowed to add interest, fees, expenses or any charges to the original money owed. It is permissible for a collector to charge extra when:
An agreement between you and the creditor incorporated expenses and fees; or
The state where the contract was drawn up allows it;
The state where a judgment was entered into allows it
(15 U.S.C. 1692f)
What to do if multiple debts are owed?
A collector must follow your instructions if you have more than one debt. A collector must use the money from you to pay the debt you instruct him to pay. A collector may not use the money to pay any other debt. (15 U.S.C. 1692h)
What takes place in the 30 day dispute period?
This is not a period of grace. The collector can attempt to collect money you owe until you challenge any or the complete debt. You must put this in writing and it must be within 30 days of you getting the debt notification. Take note it is from the day you receive the notice and not the date on the letter or the postmark).
You should challenge the debt as soon as you can. You can be sent a summons to appear in court at the same time a collector informs a Consumer Reporting Agency of your debt. You must go to court if you get a summons to appear following your debt dispute in writing. Be sure to take a copy of your dispute letter to the collector and let the judge know the collector did not give you proof of the money you owe.
What a collector may and may not say to you:
Collectors must let you know who they are, who they are collecting money for and the amount of money you owe. (15 U.S.C. 1692d-f)
Click here to see Part 4: Do You Know Your Debt Collection Rights? Part 4
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
[...] Click here to see Part 3: Do You Know Your Debt Collection Rights? Part 3 [...]