Remember, there is power in knowledge. You should understand what is in the power of the collection agency to do to collect on your debt. It is acceptable for them to contact you by phone and regular mail. However, be wary of tactics that might be used by unscrupulous collection agencies. The actions of a collection agency fall under the jurisdiction of the Fair Debt Collection Practices Act (FDCPA). When you suspect that you have been handled illegally by a collection agency, you may have legal recourse under this legislation.

Here are some tips on what a creditor is obligated to tell you. The agency must notify you of your debt obligation in writing within five days of calling you about that bill. The letter should include: how much you owe, who you owe the bill to, the explanation that you have 30 days to argue this debt, if you argue the collector must send you proof regarding the validity of the debt, and the statement that you have 30 days to request the identity of the initial creditor on the account. When you keep these things in mind, it is easier to deal with credit reporting agencies.

In your communication, do not feel obligated to give out private information or commit to payment arrangements that you cannot afford. If you want to make payment arrangements with the creditor, then you must make that decision. You do have the right to not be harassed by the collection agency. It takes a strong person to deal with pushy agents. If you can be firm, then you can avoid dealing with them. You can also choose to only communicate with them in writing because you might find it less stressful than engaging in verbal battles over the phone.

Just because you have bad debt doesn't mean that you do not have legal rights. As a consumer, you are protected by the FDCPA. Get to know more about your rights today!