A debt collection agency tries to collect overdue payments for companies that lend money, such as banks and credit card companies. These debt collectors are regulated by state and federal laws. Debt collectors can’t use unfair or predatory tactics when collecting debts, and they must follow specific rules to do so. These laws include the Fair Debt Collection Practices Act (FDCPA).More info :credifin-nederland.nl

Generally, a debt gets sent to a debt collection agency when it’s more than 30 days past due. Once the debt is in collections, it stays on your credit report for seven years. It can hurt your chances of getting a new loan and can impact your credit score.

The Art of Debt Retrieval: Tips for Choosing the Right Collection Agency

Debt collectors may contact you by phone, mail or text messages to try to collect an overdue debt. They should tell you who they work for and provide other important information, such as how much you owe and when the debt became delinquent. They also aren’t allowed to threaten you or lie. If a debt collector does these things, you can file a complaint with the Consumer Financial Protection Bureau or your state’s attorney general.

You should negotiate with a debt collection agent to make a repayment plan that fits into your budget. Keep records of your specific negotiations and ask the debt collector to update your credit reports to reflect that the account has been paid as agreed. If you have a dispute with the agency, request a written dispute letter and give them 30 days to investigate before reporting to the credit bureaus.