How Do Debt Collectors Get Your Information?

You might receive a letter from a company you don’t recognize or a call from an unknown number. It’s possible that the company contacting you isn’t the one you originally owed money to. Debt collectors often obtain your information from various sources, including your credit report, online searches, or the original creditor.

When a debt is charged off or before it reaches that point, the original creditor might hire a third-party collection agency or sell the debt to a collection agency, which then takes over the responsibility of collecting the payment. This new agency may be unfamiliar to you, but they have your personal details, including your address, the amount owed, and the name of the original creditor.

Understanding Your Rights

Debt collectors are legally required to follow specific rules when attempting to collect a debt. Knowing your rights can make dealing with them less daunting. These protections are mainly outlined in the Fair Debt Collection Practices Act (FDCPA) and state laws.

Statute of Limitations: This law limits the time frame during which a creditor can sue you for a debt. The period typically ranges from 4 to 10 years after the last payment was made. Be cautious not to restart the clock on an old debt by making a payment or acknowledging it, as this could give the creditor more time to take legal action. Knowing whether your debt is past the statute of limitations can help you determine your next steps.

Contact Times: Under the FDCPA, debt collectors cannot call you before 8:00 a.m. or after 9:00 p.m. They also cannot contact you at work if your employer prohibits it and you have requested them not to. If certain times are inconvenient for you, you can ask them not to call during those times. Additionally, they must provide a callback number upon request.

Right to Dispute: Debt collectors must inform you of your right to dispute the debt. They are required to provide the creditor’s name, the amount owed, and the option to request information about the original creditor. If you believe the debt isn’t yours, you can dispute it within 30 days in writing.
Protection from Harassment: Debt collectors are prohibited from harassing you, your family, or your neighbors. They cannot lie, threaten you, use obscene language, or abuse you verbally or physically. If they violate these rules, you have the right to take legal action or report them to your state’s Attorney General through the State Consumer Protection Office.