Knowing the Consumer Rights in A Better Way

You apply for loans for various reasons which include auto car loans, credit card loans, home loans, property loans, educational loans and so on. Due to economic and financial crisis and for other unavoidable circumstances, you fail to pay off your debts. This situation gives rise to negative consequences. The first thing happens to you is that your personal phone starts ringing. As soon as you come under default status of your past debts, the debt collectors keep chasing you. The collection agency starts calling you irrespective of time and place and they disturb and irritate you to a high extent.

This article makes you aware of the precautionary measures and the rights that you should possess as a consumer. According to the Fair Credit Reporting Act, which sets rules and regulations regarding debt collection, the collection agencies should promote fairness and honesty while collecting the debts. Following are the set rules that are mentioned in the federal statute act.

The identity or purpose should be disclosed
This is the first law enclosed in RFDCPA or Rosenthal Fair Debt Collection Practices Act which has been set in California. Under this rule, the debt collectors or the collection agency on behalf of the creditors must disclose or reveal their identity when they call at first. They should also reveal the purpose of making calls. The debt collectors should never misrepresent or lie to the debtors. Under no circumstances, can they claim themselves as attorneys or any enforced officials.

Rights of the debtors
rnIf the debt collector harasses you, you as a debtor have the right to stop communicating with the debt collectors. You can also dispute the debt in writing within a notified period of thirty days. The debt collectors also cannot pose any threat on the debtors. They cannot harass or use any harsh words over phone. If you face any kind of abuse or threat, you have enough right to sue the debt collectors and take legal actions against them.

Third party debt collectors
rnAccording to the FCRA or Fair Credit Reporting Act, the collection agencies are actually third party debt collectors who are acting on behalf of the original creditors. The debt that is incurred should be individual and not of business entity. You cannot incur a debt which is under any business purpose.

These laws protect you from debt harassment and you should seek help under these acts.