What is a debt collector?
Who contacts you?
What should you do when a debt collector contacts you?
Is this your debt?
Do you think a mistake was made?
What are your rights when dealing with a debt collector?
The regulations on debt collection
What is a debt collector?
A debt collector operates when you do not repay the debt you owe a creditor (e.g. a bank or a credit card company). Practically, it forces you to repay the amount of money you owe.
Who contacts you?
Some creditors have their own debt collectors. In this case, the creditor will ask one of their debt collectors to contact you.
If your creditor does not have their own debt collection service, you will be contacted b a debt collector that works for another company. It may be that your creditor has hired a collection agency to recover the money you owe them or has sold your debt to this agency. You are usually informed in writing whether your debt has been transferred to a collection agency before a debt collector contacts you to get the money you owe them.
What you should do when a debt collector contacts you?
A debt collector provides the following pieces of information when they contact you:
The caller: It may be the original creditor (the person who loaned you money) or a representative of a collection agency, which handles the recovery of the money lent;
The name of the person calling you and the company they work for, as well as the person’s telephone number;
The amount of debt you owe and since when. If you do not know what your debt is, review your account statements to confirm whether this is your debt and whether the amount they give you is correct. Tell the collector that you will call as soon as possible after verifying this piece of information.
Is this your debt?
If this is your debt and the amount is correct, then you should pay it immediately if possible. You can eliminate the problem by paying the amount in full and use debt help.
Here is what you should do if you cannot pay the whole amount at once:
Explain the situation to the collector and propose another method of repayment. For example, you could offer to pay off your debt in two or three payments or in a series of monthly payments;
Follow up by contacting the agent in writing and make a first payment if you can to show that you are determined to pay off your debt.
When you pay off your debt:
Do not send cash;
Make sure you always get a receipt for the payment;
Only deal with the debt collector that has contacted you about the payments. If they work for a collection agency, do not communicate with the original creditor - this could create confusion.
Do you think a mistake was made?
If you think it is not your debt or that a mistake has been committed, do the following:
Tell the debt collector and contact the original creditor (if the debt collector and the creditor are two different people) to find a way to solve the problem;
Order a free copy of your credit report from the credit bureaus, Equifax and TransUnion, to check if the debt is in your folder. If this is the case, contact the credit reporting agencies and the original creditor to correct the error. An error in your credit report could prevent you from obtaining loans in the future.
Contact the original creditor (if the creditor and the collector are two different people) to confirm the information if you are worried about the identity of the collector or their power to recover money.
What are your rights when dealing with a debt collector?
You have rights when dealing with a debt collector. For example, general debt collectors are not allowed to do the following things:
Contact your friends, your employer, your family or neighbors for information other than your phone number or your address (unless you have asked the collector to do so);
Imply that you should pay off your debt unless they have signed the loan agreement along with you;
Use threatening, intimidating or offensive language;
Contact you at 7 a.m. or after 9 o’clock in the evening or at certain hours on Sunday.
The regulations on debt collection
Contact the appropriate regulatory agency for the complete set of regulations on debt collection or if you think that the debt collector you are dealing with is not respecting your rights.
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