In the current economic environment many people are being hounded by debt collectors. Know your rights.
In their first contact the collection agency must provide you with the name of the creditor, the amount of the initial debt, a breakdown of penalties and interest, and an explanation of your rights. If the agency calls instead of writes request the information in writing. They must respond to this request within 5 days.
Start a file to record all phone calls and keep all correspondence.
If you do not owe the debt, write a letter disputing the claim to both the collection agency and the creditor. Include details and all supporting documentation. Be sure to keep copies of all for your file.
Do not accept harassment from collectors. They are prohibited from calling between the hours of 9:00pm and 8:00am and from using abusive or threatening language. Write to the agency to not call; they must abide by your request.
If you do owe the debt; come up with a plan to repay. It should be a plan that you can live with so the collection agency will not contact you again, when you can not pay according to plan.
Last, but not least, if harassment continues you can file a complaint with the Federal Trade Commission (www.ftc.gov)
