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Collections Library

Debt Collectors are salesmen... pure and simple. They are paid to make you pay old charged off debts. They act as a third party to the original lender thus, putting them responsible for certain action under the Fair Debt Collection Practices Act. A collector does not want a smart debtor. You make their job tougher when you know the rules. According to and under the provisions of public laws 95-109 and 99-361, also known as the Fair Debt Collection Practices Act, you have rights. Read those rights in full, it will tell you what they can and cannot do. Before you make promises to a debt collector review your options.

In researching your debts, statute's and credit rating it is often necessary to know the "collection laws" of a particular state. Because state laws vary, knowing the right collection law for your state or your creditors state is essential. Below, you can find bad check laws, state collection requirements, statutes of limitations for both debts, judgments, and garnishments. Totally invaluable...and can be used in conjunction with our information on defending the statute of limitations.

If you have been contacted by a debt collector then you should know that you have a right to dispute the validity of the debt. The burden of proof is on the debt collector... not you. Before you even consider paying the debt, know that you have a right to request that the bill collector provide adequate proof of the (alleged) debt.

So many people will pay a collection account, risk renewing the statute of limitations only to find after it is too late that they had an absolute defense to the alleged debt. You'd be surprised how often a collection agency cannot validate a debt and therefore cannot legally enforce collections.

One of our strongest consumer rights is the Fair Credit Billing Act and TILA-Truth in Lending. This law allows you to question a balance and have the debt proven to you. Not only do you need to verify the dollar amount but you need to check to dates of opening, last activity and last payment. One of the most common errors in credit reports are debts reported inaccurately by the original creditor. Make sure they prove to you the debt is due down to the last penny. Pay attention to the fees and penalties they assess. Most states have a usury law which means the debt can only be charges fees and interest according to that state's law.

Find your state collection laws here.
Find your state statute of limitation laws here.

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