An original creditor can absolutely attempt to collect a past due debt on its own, or it can hire a third-party debt collector or sell the account to a debt buyer. This guide explains the difference between an original creditor and a debt collector, what the Fair Debt Collection Practices Act covers, and what to do if a creditor sues you — including resources for Colorado Springs servicemembers.
Debt collectors cannot add interest or fees to a debt unless the original agreement allows it or state law expressly permits it. This guide explains the restrictions, how to verify what a collection agency is charging, what happens if you are sued, and how to negotiate — with special resources for military borrowers in Colorado Springs.
Repeated or continuous phone calls made to harass, oppress, or abuse you are prohibited under the Fair Debt Collection Practices Act. Here is what the Consumer Financial Protection Bureau says you can do: verify the debt, dispute it if it is wrong, get any agreement in writing, and file a complaint with the CFPB.
If a debt collector is contacting you while you serve, you have specific rights and several free places to turn. Here is where servicemembers — including those stationed in Colorado Springs — can get additional help with a debt collector problem, from JAG legal assistance to a CFPB complaint.
Debt collectors can contact your chain of command, but only to find out your location, phone number, and where you work. They cannot tell your supervisor or commander that you owe a debt. Here is what the Fair Debt Collection Practices Act allows, how the UCMJ and security clearances fit in, and what Colorado Springs servicemembers should do next.