Are debt collectors constantly calling your phone? Are you being harassed about debt you’re not sure you even owe? Are you afraid of being sued for debt you’re not currently able to pay?
Here are three things you need to know to help keep debt collectors in their lane.
Validate your Debt
In the simplest form validating your debt means making sure that the debt is real and that it is accurate. If you get a call from a debt collector ask them to send you proof of the debt and all important information. Because collections agencies buy debts their main way of making money is to get someone to pay the debts. This can sometimes lead to inaccuracies and them attempting to hold the wrong person accountable for the debt. To validate the debt some things you need to know are the payment history, whose name the account is in, where the account is from, and the balance on the account.
Statute of Limitations
The statute of limitations is the period of time during which a creditor or collector can sue a borrower for the amount owed. This also represents the amount of time before the debt will fall off of your credit report. A statute of limitations is typically between 4 and 6 years. This date begins after the date that you made your last payment on the account.
Fair Debt Collection Practices Act
The Fair Debt Collections Practices Act protects individuals and dictates how collectors are allowed to call and contact you. Their rules state that debt collectors can’t:
- Contact you before 8 am or after 9 pm.
- Contact you at unusual times or places that are inconvenient
- Harass you by phone, text, email, or any other means
- Continue contacting you after you’ve let them know you’re represented by an attorney
- File or threaten to file a lawsuit after the statute of limitations has expired.
To get the facts about your credit score and start making improvements today contact Millennium Financial Services to book a free consultation (833) 752-7334.