Debt Collection Process

Before we discuss the debt collection process let's clear our concepts of the debtor, creditor and collector. It is the job of the attorney to collect debts from the debtors; so, he is the collector. Debtors are the individuals who owe a debt to any other person. If I took a personal loan from a bank and I am paying this bank a regular installment then I am a debtor of this bank till I pay off the amount with interest. The creditor is the individual who lends you the money. In this case my creditor is the bank X. Now let's discuss the debt collection process. 

How the debt collection process works? 

It is the job of the attorney to make sure that you or me or any individual owing the amount pay the amount in full. For this he may take the service of the collection agency. But much before this when the situation is not that serious you get the friendly reminders form your creditors which remind you of the amount that you have to deposit. 

The next stage involves somewhat strict remainders which include that if you miss the deadlines you will be charged a certain amount of fine. As this stage pass and your creditor consider you a stubborn debtor, he takes the service of the collectors. The attorney is a designated authority who makes sure that you deposit the amount within a certain time period. 

The collectors will then remind you often about the amount that you owe and the installment that you have to pay to your creditor. The calls become harassing as the deadlines arrive and all this lasts till you either take the agencies offering the debt programs or you reach out to your creditor and pay the amount in full or negotiate with him your interests.  

This is a brief insight of how the debt collection process works. To get a clear idea you should also know your rights as a debtor. 

What are your rights as a debtor? 

The Fair Debt Collection Practices Act says that the debtor should be given a fair treatment. The law further says that 

• The collectors cannot threaten you or use any such method to make you pay your debt. 
  
• They can neither harass you nor can use any violent ways for debt collection. 
  
• They cannot publish your name in public. 
  
• They cannot harass you by phone calls. 
  
• They cannot collect an amount more than the amount which you owe. 
  
• They cannot force you to accept the calls.
  
• They cannot jail you. 
  
• They cannot take away your house or property.

You can use your rights if you receive any threatening calls. You can also ask the collectors to remind you in written and for this you can write an application to the collector requesting him to do so. But make sure that you retain a copy of the letter with you as a proof.