A debt collector is generally a person or company that regularly collects debts owed to others or who has the primary purpose of collecting debts. They’re likely contacting you because they’re trying to reach a person who may owe a specific debt.
Debt collectors can include collection agencies or lawyers who collect debts as part of their business. There are also companies that buy past-due debts from creditors or other businesses and then try to collect them. These companies are also often called debt collection agencies, debt collection companies, or debt buyers.
Why is a debt collector calling me?
A debt collector may be trying to contact you because:
- A creditor believes you are past due on a debt. Creditors may use their own in-house debt collectors or may refer or sell your debt to an outside debt collector.
- A debt collector also may be calling you to locate someone you know, but the collector is not allowed to reveal that the consumer owes any debt.
- A debt buyer has bought the debt and is now collecting that debt themselves or by using other debt collectors.
If the debt collector is contacting you for payment on a debt, there is certain information they usually must give you in the initial communication or within five days of that initial communication.
If you don’t believe you owe the debt or believe the amount is wrong, you can dispute it with the debt collector and the credit reporting company, if the debt appears on your credit report. If you dispute the debt in writing within 30 days of receiving the required information about the debt from the collector, then the debt collector must send you verification of the debt. You can also ask the debt collector for additional information.
Learn more about what to do if a debt collector contacts you
Getting a debt collector to stop calling you
You can ask a debt collector to stop contacting you. Asking them to stop contacting you will not necessarily stop them from suing you or reporting the debt to a credit reporting company, which can affect your credit report and credit scores. If you don’t owe the debt or have already paid the debt, it is important to take action to contest the attempt to collect the debt.
If you're having issues with debt collection, you can submit a complaint with the CFPB
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As an expert in the field of debt collection, I bring a wealth of knowledge and experience to shed light on the intricacies of this often complex and challenging subject. With a deep understanding of the legal framework, industry practices, and consumer rights surrounding debt collection, I aim to provide comprehensive insights into the concepts discussed in the provided article.
Firstly, it's crucial to recognize that a debt collector, whether an individual or a company, specializes in the collection of debts owed to others. This can include debts that are past due, and these collectors may be working on behalf of the original creditor or have acquired the debt from another entity. The diversity within the realm of debt collectors encompasses collection agencies, lawyers, and companies specifically dedicated to purchasing and collecting past-due debts. These entities are often referred to as debt collection agencies, debt collection companies, or debt buyers.
Understanding why a debt collector is reaching out to you is pivotal. There are several scenarios that may prompt a debt collector to contact an individual:
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Past-Due Debt: A creditor, either through in-house collectors or external entities, believes that an individual is past due on a debt.
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Debt Location: A debt collector may be attempting to locate a person who is associated with a specific debt, but they are prohibited from disclosing the details of the debt to anyone other than the debtor.
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Debt Purchase: A debt buyer has acquired the debt and is now seeking to collect it directly or through other debt collectors.
Importantly, if a debt collector is pursuing payment, there are specific information disclosure requirements. Within the initial communication or five days thereafter, the debt collector must provide certain details. If there are doubts about the legitimacy or accuracy of the debt, individuals have the right to dispute it with both the debt collector and the credit reporting company.
To address concerns related to debt collection, individuals can take proactive steps. If they believe they don't owe the debt or have already settled it, they can request the debt collector to stop contacting them. However, it's crucial to note that stopping contact does not necessarily prevent legal action or the reporting of the debt to credit reporting agencies, potentially impacting credit scores.
For those facing issues with debt collection, filing a complaint with the Consumer Financial Protection Bureau (CFPB) is an option. This regulatory body oversees and addresses concerns related to consumer financial products and services, including debt collection practices.
In conclusion, being well-informed about the rights and procedures associated with debt collection is essential for individuals navigating this challenging terrain. Whether disputing a debt, seeking cessation of contact, or addressing credit reporting issues, understanding the relevant laws and taking appropriate actions is crucial for protecting consumer rights in the realm of debt collection.
