You might currently owe more than one lender money. It is not uncommon, nowadays, for California residents to have multiple loans out at once. Perhaps you have a mortgage, a car loan and credit card debt. If you run into financial trouble, it can be quite challenging to meet your monthly payments. Many issues, such as reduction of income, medical bills or some other family crisis, might throw your finances completely out of whack.
If this describes your current state of affairs, know that you are definitely not alone in your struggle. The good news is that there are often several options for resolving serious financial problems. More good news is that most financial crises are temporary. What can make this type of situation all the more stressful is having creditors hound you with phone calls or employ other practices to try to collect a debt.
They can’t just do whatever they want
There are laws regarding collections practices in the United States. The Fair Debt Collections Practices Act limits what collectors may do when attempting to collect certain types of debt. The FDCPA also governs the process of listing collections on credit reports. The following information provides basic facts about the FDCPA and what you can do if someone violates your rights:
- The FDCPA does not cover business-related debts.
- If collections agents are calling you to attempt to collect a debt, they must do so between the hours of 8 a.m. and 9 p.m.
- You can inform collectors that they are not to contact you at work.
- Phone agents may not use intimidation tactics, profanity or any type of aggressive behavior to attempt a debt collection.
- The person on the phone must agree to identify the original creditor associated with the debt in question.
- You must contact a debt collector in writing to request no further contact.
- Many people hire attorneys to act on their behalves so that they do not have to speak with collection agencies by phone.
You can dispute any debt by navigating the correct process to do so. Also, there are certain types of bankruptcy that prompt an automatic stay against collections or litigation. If you send a collections agency a written request to stop contacting you, it is a good idea to save several copies of the written correspondence. The FDCPA is a federal law; however, many states also have laws regarding collections practices. If you’re having problems regarding debt collections, you can reach out for legal support at any time.