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Collection Agency Rights – Know Your Rights When Dealing With Collection Agencies

 

If you are owed money, you should be wary of making payments or arranging payment plans without first consulting with a collection agency. Although third parties have the authority to collect debts, their power is limited, and knowing your rights will help you minimize the effects of a third party collection agency. You can even take steps to prevent them from contacting you in the future by taking certain steps. Keep reading to find out what your rights are.

If you are owed money, you should be aware that you are protected under federal and state laws. If you receive a collection agency’s letter, you can respond in writing to request the name of the original creditor. If you receive a letter that contains a dispute, write to the original creditor and request the information. Remember that you have the right to contest the debt within thirty days. You should also send copies of correspondence to the collection agency.

You can ask the agency to prove that their information was incorrect. Often, collection agencies will send the information back to the original creditor if you can show proof of the error. However, you must send the letter in writing. You can also call the federal trade commission to file a complaint. These agencies must send you a written notice that explains why they are incorrect. Once you have filed a complaint, the collection agency will remove the information from your credit report. Click here for more information about collection agency information.

You can also ask the collection agency to disclose its identity and purpose. The FDCPA requires debt collectors to identify themselves and explain why they are attempting to collect the debt. They can’t threaten you or use profanity. In addition, they cannot publicize your financial situation without your permission. In addition, they can’t lie about the purpose of the collection. So, before you sign any agreement with a collection agency, make sure to check out its reputation and membership in various trade associations.

A collection agency will not contact you unless you have made payment arrangements with them. In case you owe money to a collection agency, you must inform them in writing and be willing to pay them the amount owed. If you fail to pay the debt, the collection agency will continue to harass you and your credit history, and you’ll have to face the consequences of ignoring the debt. If the collection agency receives a notice of default, it will start contacting you.

A collection agency is a legal entity that will contact a debtor for a debt. The agency will need to provide you with a letter containing your name, address, and telephone number. If you do not reply, the agency will have the right to sell the debt and report it to the credit bureau. This process is called for in the case of delinquent debts. Once a collection agency has received payment, they will call the debtor to request payment.

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