LEARNING YOUR RIGHTs IN COLLECTIONS MADE EASY
Dealing with collections can feel stressful, especially if you’re not sure what your rights are or how the process works. This page was created to give you clear, helpful information so you know what to expect when working with a collection agency. Not all agencies are the same—while some may use unfair tactics, professional agencies are here to treat you with respect and help you resolve your debt in a fair way. By understanding your options and protections, you can feel more confident and in control throughout the process.
THINGS TO KNOW AS A CONSUMER
Your Rights
Collection agencies must follow the Fair Debt Collection Practices Act (FDCPA). This means they can’t harass, threaten, or use unfair tactics to collect a debt. They also can’t call you before 8 a.m. or after 9 p.m. unless you give permission.
Debt Verification
If a collector contacts you, you have the right to ask for written proof of the debt. This should include the amount owed, the original creditor’s name, and confirmation that the agency has the legal right to collect. Always review this information before making payments.
Credit Impact
Unpaid debts in collections can appear on your credit report for up to seven years. Paying or settling the debt won’t erase it right away, but it will show as resolved, which is better in the eyes of future lenders.
Interest, Fees, & Old Debts
Depending on the original credit agreement and your state’s laws, interest and fees may continue to add up. Also, keep in mind that debts have a statute of limitations (usually 3–6 years). After that time, a collector can still request payment, but they can’t sue you for it. Be cautious—making a payment on old debt may restart the clock.
Negotiation Options
You don’t always have to pay the full balance in one lump sum. Many agencies are open to payment plans or even settling for less than what you owe. Just make sure to get any agreement in writing before sending money.
Co-signing
If you co-signed a loan or credit account, you’re just as responsible for the debt as the main borrower. That means if the primary person doesn’t pay, the collection agency can contact you to collect the balance. Even if you never used the account yourself, your credit can still be affected.