Know Your Rights as a Debtor

Debt elimination is one step toward becoming debt-free. Another wise decision is to educate yourself on how to deal with debt collectors. By law, you are entitled to certain rights as a consumer. Debt collectors must abide by the Fair Debt Collection Practices Act. Make sure your debt collectors are in compliance with the law by knowing your rights.

Definitions in the fair debt collection practices act

The debts covered by the law are all personal, household, or family debts. Such debts include medical bills, car loans, or credit card accounts. Anyone who collects debts on a regular basis qualifies as a debt collector under the act, including debt collection lawyers.

What debt collectors cannot do

The Fair Debt Collection Practices prohibits debt collectors from:

• Threatening violence or harm
• Annoying you with incessant phone calls
• Using abusive or profane language
• Misrepresenting the amount of your debt
• Identifying themselves under false pretenses (e.g., government agency representative)
• Implying that you have committed a crime
• Issuing empty threats of lawsuits or arrests when such actions cannot be taken
• Repossessing or threatening to repossess your property when it is not legal to do so

Know your rights and make sure you ask the necessary questions.