By Jasmin Brown

BDO Debt Solutions

Debt Collectors and Your Rights

Aug 3, 2021 | 3:54 PM

It is no secret that many people are struggling financially. Often this can mean using one credit facility to pay another, just to stay afloat.

Unfortunately, it can also often mean having to leave bills and debts unpaid. Those unpaid debts often end up in the hands of debt collection agencies. Sometimes, your creditor hires a debt collection agency to collect on their behalf, and sometimes they actually sell your debt to a collection agency.

If you get a notice that your creditor is transferring your debt to a collection agency, you may wish to reach out to them right away. It may be possible to make an arrangement with the creditor to settle the debt, or at least enter into an arrangement for repayment.

How does having a debt sent to collections affect credit score?

Having a debt sent to collections will negatively impact your credit score. It will cause your credit score to go down. Please visit our website for further information on how to rebuild your credit.

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What information should you get if a debt collector calls you?

Unfortunately, this day and age, you have to be skeptical of many calls that you get. Should you receive a call from a debt collection agent, you want to gather information to help you determine if the call is real. Start by asking yourself if you have any unpaid debts. Then, gather the following information from the agent so that you can verify it on your own:

· Their name, telephone number and the company for whom they are working;

· The name of the creditor on behalf of who they are collecting;

· The amount they are claiming you owe on the debt, and when you started owing it.

What to do if you determine it is your debt

Should you determine that the debt is yours, if possible, you want to pay off the debt in full. If you are able to pay, ensure you get a receipt/acknowledgement in writing that you have paid the debt. The payment should be made to the debt collection agent, not the originating creditor.

Realistically, paying the debt off is not always an option. In that case, keep the lines of communication open. Explain your situation to the debt collection agent, and work on an arrangement to pay the debt. It is always recommended that you follow-up in writing, to ensure that the agreement is documented.

What can collection agents do to collect the debt?

Collection agents do have the ability to take some action toward collection. However, when it comes to dealing with debt collectors, you have rights too. Some important things to note are:

· A debt collector can contact people in your life (friends, family, employers, etc.) to get your telephone number or address – but they can’t suggest that they should pay your debts (unless they co-signed);

· A debt collector can contact your employer to confirm your employment;

· A debt collector can’t contact you on holidays, but can contact you Monday – Saturday between the hours of 7:00 am and 9:00 pm, and Sundays between 1:00 pm and 5:00 pm;

· A debt collector can’t speak to you in a threatening, intimidating or abusive manner, or harass you;

· A debt collector can’t give you false or misleading information.

Perhaps you are having difficulty managing your debt repayment, and you have debts in collection. Or perhaps your creditors have gone a step further and have begun to garnishee your wages or place liens on your property. If you are finding that your debt is unmanageable and it is causing you to feel overwhelmed and stressed, know that there is help available.

If you are having trouble making ends meet each month, finding the right debt solution can help. Visit the BDO Debt Solutions website for more information about bankruptcy, or call 1 855 BDO DEBT to book a free, no obligation consultation.