Frequently Asked Questions About Debt Collections
Why has The Law Offices of Mitchell D. Bluhm and Associates contacted me?
The Law Offices of Mitchell D. Bluhm and Associates uses lawful methods to encourage debt repayment. If the firm contacted you, it is likely that your debt has switched creditors, and the firm’s client is now the party seeking to collect.
Why do I owe a different creditor now?
It can be confusing when someone you don’t recognize contacts you about money you thought you owed to someone else. However, many companies hire or sell debts to other parties, which have the resources to better manage payments and collection actions.
If you are unsure about whom you owe, you can contact your original creditor, which may have notified you of the change when it happened. You may also send a debt validation letter to the new creditor to request proof that you owe them, the amount you owe and other details of the debt.
Do my rights change if a creditor sells my debt?
Generally, you will have the same rights regardless of who owns your debt. The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects the rights of debtors.
The FDCPA applies to medical debt, credit card debt, mortgages and a variety of other consumer debts.
What can creditors do to seek payments?
Creditors can use the proper methods to collect payment, including:
- Sending reminders through phone calls, emails and mail while complying with the law
- Reporting delinquent accounts to the credit bureaus
- Negotiating the debt in order to create a structured payment plan or collect at least a portion of the total amount owed
However, there are laws that protect debtors against certain collection methods. For example, creditors may not use harassment, late night phone calls or the publicizing of debts against the debtor.