Debt collection is the process of pursuing payments of debts owed by individuals or businesses. An organization that specializes in debt collection is known as a collection agency or debt collector.
If you find yourself being called by a collection agency, it is important to know your rights and what you need to do moving forward. The Fair Debt Collection Practices Act or FDCPA makes it illegal for debt collectors to use abusive, unfair, or deceptive practices when collecting debts.
If a debt collector breaks this law, you can sue them in a state or federal court within one year of the law being violated. You can sue for anything from damages, lost wages, even medical bills. Even if you are unable to prove damages you can still be awarded up to $1,000.
It is important to note though, that even if a debt collection agency is found to be in violation of the FDCPA, you will still owe the original debt.
