Home > Economy > How Debtors Benefit From Debt Collection Law

How Debtors Benefit From Debt Collection Law

Debtors have many rights, which most of them take for granted. Creditors are required to do their jobs in a professional manner. Not complying with the law opens the creditor up to commercial litigation. Here are several ways that your rights are protected under debt collection laws.


The most important rule for debt collectors is that they are not allowed to harass clients. They must remain professional without sending threatening letters or leaving rude phone messages. Also, collectors cannot make overnight calls or mail dozens of letters to the same address in a short period of time.

Anyone who owes debt should be grateful that they will receive only a handful of letters every month from the same collection agency. Communication is the simplest way to comply with the law, so open up the lines of communication with your creditors.

Respond favorably to their requests at collecting the debt. If they want to set up a payment plan, set one up as soon as possible. Most creditors are willing to work with all types of budgets. None of them will deal with you nicely if you completely refuse to answer their calls.

Collecting More Money Than Owed

Piling debt on top of more debt is not permitted. Some collectors do this by exaggerating the original amount of your loan or inflating the interest rate. Either action is illegal and can result in serious legal action.

Any increases that occur in the original debt are outlined in the loan agreement. It’s the debtor’s responsibility to review all of the terms before making the agreement.

Unsolicited Marketing

Collection laws prevent your personal information from being sold to third-party marketers. Collectors are not permitted to let other people harass you so they can earn more money.

Documented Evidence

Collectors must rely on documented evidence as proof that you owe certain debts. They cannot rely solely or partly on information made verbally. If you contact them mostly by phone, you still need documents as evidence of your debts and the payments you have made so far. If there are any changes made to your account, the creditor mails you a document with details about any and every change.

Debt collection is a frustrating process for anyone, but the law controls how debtors and creditors are allowed to behave. Instead of taking the law for granted, debtors should learn more about creditors and work toward building better relationships with them. The +120 Days website has more resources available if you would like to learn more information.

Categories: Economy Tags:
  1. No comments yet.
  1. No trackbacks yet.