Whether you are a debtor who is getting calls from a collector or a creditor looking to hire one. It is important to know the laws and rules that a collector is supposed to follow. Collection agencies like Cedar Financial follow ethics and guidelines laid by respective countries to serve their customers better.
When you get a call from a collector it can frighten you. Thus, knowing your rights are important. If you are a creditor looking to recover your money, you need to hire a collector who follows laws and knows them. Otherwise, you can get into legal troubles as well. Click here to know how Cedar Financial can help you recover your debt.
In this blog, we will explore eight critical questions that everyone has about debt collections & collectors.
Q1. What is the policy on calling a debtor? Can a collector call them anytime?
No! a debt collector cannot call a delinquent anytime. Every state or region has specified a period in which a collector can make the calls. For instance, as per FDCPA, a debt collector can call the debtor between 8:00 am to 9:00 pm only. If a debtor asks to call at another time, only then you should do so.
Q2. Who else beside the debtor can a collector contact?
Yes, a collector can contact the spouse or other family members, and even friends of a delinquent. But only to know about the whereabouts of the debtor. In no circumstances, can they disclose about the debt to anyone except the spouse or lawyer.
Q3. Is there a way a debtor can stop a collector from calling/contacting them?
Yes, there is a way. A debtor can send a written request asking the debt collector to stop contacting you. A debtor needs to keep in mind to send the mail using a certified mail and keeping a receipt as proof. It is important to have proof of the future.
Also, keep in mind that asking a debtor to stop calling won’t make the debt disappear. Thus, it is best to talk to the debt collector once to make sure whether the debt belongs to the delinquent or not. If it does not, they can take a further step.
Q4. What to do in case the debtor believes the debt isn’t his/her?
If a debtor believes that the debt doesn’t belong to them, they can ask for validation of the debt. A debtor has 30 days from the day of initial contact with the debtor to verify the debt. A debtor needs to send a written letter asking the creditor or collector to send proof that the debt belongs to him/her.
Until the debtor provides you with proof, they cannot resume the collection process.
Q5. What to do when a debt collector sues the debtor?
A debtor needs to hire an attorney and they can guide them further. But it is imperative that your reply to the lawsuit within the specified time.
Q6. Is it possible for a collector to take money from debtor’s paycheck?
Yes, but only if they sue them and win the lawsuit. If the debt collector wins the argument, they can ask the court to garnish the debtor’s wage. It means that every month, the collector will deduct a certain amount from your salary.
Do you have any more questions? Ask us in the comments below.
When you get a call from a collector it can frighten you. Thus, knowing your rights are important. If you are a creditor looking to recover your money, you need to hire a collector who follows laws and knows them. Otherwise, you can get into legal troubles as well. Click here to know how Cedar Financial can help you recover your debt.
In this blog, we will explore eight critical questions that everyone has about debt collections & collectors.
Q1. What is the policy on calling a debtor? Can a collector call them anytime?
No! a debt collector cannot call a delinquent anytime. Every state or region has specified a period in which a collector can make the calls. For instance, as per FDCPA, a debt collector can call the debtor between 8:00 am to 9:00 pm only. If a debtor asks to call at another time, only then you should do so.
Q2. Who else beside the debtor can a collector contact?
Yes, a collector can contact the spouse or other family members, and even friends of a delinquent. But only to know about the whereabouts of the debtor. In no circumstances, can they disclose about the debt to anyone except the spouse or lawyer.
Q3. Is there a way a debtor can stop a collector from calling/contacting them?
Yes, there is a way. A debtor can send a written request asking the debt collector to stop contacting you. A debtor needs to keep in mind to send the mail using a certified mail and keeping a receipt as proof. It is important to have proof of the future.
Also, keep in mind that asking a debtor to stop calling won’t make the debt disappear. Thus, it is best to talk to the debt collector once to make sure whether the debt belongs to the delinquent or not. If it does not, they can take a further step.
Q4. What to do in case the debtor believes the debt isn’t his/her?
If a debtor believes that the debt doesn’t belong to them, they can ask for validation of the debt. A debtor has 30 days from the day of initial contact with the debtor to verify the debt. A debtor needs to send a written letter asking the creditor or collector to send proof that the debt belongs to him/her.
Until the debtor provides you with proof, they cannot resume the collection process.
Q5. What to do when a debt collector sues the debtor?
A debtor needs to hire an attorney and they can guide them further. But it is imperative that your reply to the lawsuit within the specified time.
Q6. Is it possible for a collector to take money from debtor’s paycheck?
Yes, but only if they sue them and win the lawsuit. If the debt collector wins the argument, they can ask the court to garnish the debtor’s wage. It means that every month, the collector will deduct a certain amount from your salary.
Do you have any more questions? Ask us in the comments below.
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