credit, credit reports and debts are also protected by the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA). These laws protect borrowers against inaccurate information being reported by credit bureaus and collection agencies representing them to credit companies and protect the privacy of that information.

 

10. A collection agency can, however, add additional charges to your debt if you have agreed to, on the original contract with your creditors, that you agree to pay collection costs. Collection costs can be attorney fees, court fees or collection fees.

 

Being in debt does not mean you have lost your rights and civil liberties. On the contrary, you have more of the law protecting you. You are also bound by law to settle your debts, of course. Nevertheless, knowing these tips to deal with collection agencies will be to your advantage if a worst-case scenario occurs.

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