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learn more, If you feel there is a mistake, submit your challenge to the creditor. If they insist there is no mistake, you can request that a statement from you be attached to your file that includes your testimony, so that anyone viewing your credit report will see both sides of the story.

Next, you have to work with the debt collector to start paying off your debt. That is their whole purpose. Your credit report will look much better once you have cleared that negative balance.

What is a debt collector NOT permitted to do?
A debt collector is NOT allowed to threaten you or abuse you in any way. This includes:

threats of arrest
using abusive language (such as profanity)
making your debts publicly known
annoying you via phone

A debt collector is also NOT allowed to falsify any information in attempts to collect your debt, such as:

faking legal documents
conversely, failing to inform you that an actual document is a legal document
misrepresenting themselves or who they work for
implying that you have broken the law and may be arrested (that's a threat)

A debt collector CANNOT claim any action that is not legally intended by the people to whom you actually owe the money. Remember, the debt collector represents someone else, it's not the debt collector you owe. So they cannot make any threats claiming they are going to seize your assets or garnish your wages. Only the creditors can do those things, and even then only if it is legal in your situation.

There are many practices a debt collector cannot do. If anything seems suspicious, check it out. Other examples of sketchy behavior includes:
making you pay for collect calls
making you pay more than you owe

What do I do if a debt collector is harassing me or violating my rights?
If you feel a debt collector is violating your rights, you may report the violation to your State Attorney General's Office or the Federal Trade Commission. The Attorney General's office will investigate your claim to determine if any laws have been violated. If this is the case, you may sue the debt collector for damages, possibly including legal costs.

I had to be contacted by a debt collector due to some bad outstanding debts, and my credit report looks bad. Will this incident haunt me forever?
You are in luck. Every seven years, negative information is cleared from your credit files, so long as the issue has been taken care of. If you have to file for bankruptcy, that information will be erased after ten years.

Do not fear the debt collectors. They are there to remind you that you owe someone some money, and to encourage you to get that balance squared away and get out of debt. Now that you know what to expect if you are contacted, you will be better able to maintain your rights and handle the situation with your rights maintained.

Learn more about this author, Mike Peterson.
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