Unfortunately, most people who owe a debt are unaware of what it means when an outstanding balance is sent to collections, knowing only that it is considered a negative event. In addition, they are unsure what their rights are as consumers who owe a debt. If this represents your circumstances, it’s important to understand what this means and how an Arroyo Grande consumer lawyer can assist you if you’re facing harassment when a debt in collections.
What Does It Mean When a Debt Enters Collections?
When you owe a creditor a debt, whether it’s an overdue medical bill or unpaid credit card balance, it’s important to understand what happens following your missed payment date. Generally, you can expect the creditor to contact you in relation to the outstanding balance in the thirty days following the payment. After 30 days, they will report the missing payment to the credit bureaus, which can impact your credit score. Typically, a creditor will attempt to collect the balance for up to six months before the debt enters collections.
If the creditor has made numerous attempts to collect on a debt and remains unsuccessful, they can choose to send the debt to collections. Essentially, this means they will sell the debt for a fraction of the cost to a third-party collector, whether an agency or individual, who will then attempt to collect the debt.
Do I Have Any Rights If This Happens?
It’s important to understand that even though you owe a debt, you still have rights as a consumer. This is especially true in relation to third-party debt collectors who are bound by the Fair Debt Collections Practices Act (FDCPA), which prohibits certain behaviors to prevent consumers from harassment. Common violations of the FDCPA include, but are not limited to, the following:
- Calling outside of allowed hours (8 a.m. to 9 p.m.)
- Placing repeated phone calls in a short period of time
- Disclosing your debt to others
- Lying about how much money you owe
- Pretending to be an attorney or police officer
- Threatening you or your family
- Threatening to sue you if they have no intention to do so
You can fight for compensation for FDCPA violations of up to $1,000 in statutory damages per violation. Even if a debt is in collections, it does not constitute harassment from a debt collector.
If you are facing harassment over a debt in collections, it’s important to understand that you do not have to bear the burden alone. At Loker Law, APC, we understand how complicated these issues can be, which is why we will do everything possible to help you fight against unfair treatment. Connect with our team today to learn how we can help you fight against harassment.
