Frequently Asked Questions About A Debt Collection System

By Author: Marie Elliott
Total Articles: 4
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Nobody who owes money likes debt collectors, but then companies that are owed money don’t like it when their customers stop paying. As long as there are unpaid debts, there will most likely be debt collectors. These professionals are quite determined in their efforts to collect money, but they’re not above the law.

Here are some answers to questions that consumers often have about debt collectors and their systems and methods.

Q: What laws do debt collectors have to follow?

A: First and foremost, they have to follow a federal law called the Fair Debt Collection Practices Act. Generally the Act prevents collectors from being deceitful and abusive in their work. Depending on where you live, various state laws may also apply.

Q: How can I get a collector to stop calling my number looking for a person I don’t know?


A: Often simply telling the caller that they have the right number but the person they’re after doesn’t live in your home will be enough. If that doesn’t work, put it in writing by sending a certified letter ...
... to the debt collector with a return receipt requested.

Q: I have defaulted on a debt. How long will this stay on my credit report?

A: Seven years for consumer debt. For Chapter 7 bankruptcy, 10 years. If you pay the debt, you may be able to negotiate to have the default removed from your credit report. This is usually easier with collection agencies than with the original creditor.

Q: Can I sue a debt collector if he or she has violated my rights?

A: Yes, you can, under the Fair Debt Collection Practices Act mentioned above. You have a year to take legal action, and can be awarded money for real damages as well as up to $1,000.

Q: What can an identity theft victim to do convince a collection agency that he or she was not responsible for the debt?

A: Again, write to the agency and include letters from companies that state it is not your debt, a fraud affidavit or a police report – or all three. Upon receipt of this proof, the agency must stop calling you.

Q: Is it lawful for a collection agency to relay information about my debt to people I know, my family, my employer, etc.?

A: Absolutely not. This information can only be discussed with you, with the creditor, with a credit bureau and with an attorney associated with your case.

These are just a few of the questions people sometimes have about working with debt collectors. For a full explanation of these and any other concerns, it’s always best to consult a qualified attorney.

Marie Elliott is a freelance writer interested in DAKCS, sellers of debt collection management software and related technology. You can learn more about debt software by DAKCS by visiting their website, DAKCS.com.