Creditors calling about your debts can be a hassle and an embarrassment, especially if they’re not following the rules for their conduct. Read on for a list of things creditors can and cannot do if you make a late payment.
Debt collectors must contact you to notify you of your obligations. If you listed personal references on your application documents, creditors can contact them only if they cannot reach you, and only to discuss how to get in contact with you. Collection agencies must send you notification in writing of what you owe and to whom within five days of the first time they call you. You then have 30 days to protest the debt or prove that you do not owe it. Creditors are also allowed to charge fees or raise interest rates on a credit card if you don’t make your payment on time.
Though they are allowed to contact you, your creditors cannot do so before 8 a.m. or after 9 p.m., or contact anyone with whom you work. They also cannot tell anyone else that you owe money, unless that person cosigned on the loan or account, They cannot continue to call you if you request that they stop. Be aware, though, that even if they stop calling you, your debt still must be paid or otherwise dealt with. It is illegal for creditors to threaten, harass, or insult you or a third party. They may only threaten to repossess your property if your contract with them specifies that repossession is an option. They cannot threaten to have you arrested, or lie about your debt or the consequences of not paying it.
When your creditors are calling, it is hard to know what to do. Luckily, Golden State Law Group can help you negotiate a fair solution to paying down your debt that will work for you, your creditors, and your credit rating. To schedule an appointment, call us at (619) 234-3333 today.