What you need to know about the loan.

Have debt problems? Understanding your rights can help you deal with your debts and prevent debt collectors from harassing you.

What can a creditor do to me if I owe a debt?

A creditor may:

• Stop doing business with you.
• Report your debt to a credit reporting agency.
• Retain debt collection agencies to try to collect the debt
• Sell your loan to a loan buying company.
• File a debt collection lawsuit.

What if the creditor sues me?

If creditors sue you for a debt, you can defend yourself and dispute the debt. Don't ignore legal action. Get legal help with a summons or any legal papers you receive.

A creditor may or may not be able to enforce a judgment and collect money from you. If the loan is "secured" by collateral such as your home (as in the case of a mortgage), the lender can repossess the collateral to satisfy the loan ("repossession"). If the debt is unsecured, such as a hospital bill or credit card debt, the creditor can freeze and later seize the funds in your bank account, garnish your wages within certain limits, Can take personal property, or place a lien on real property.

What is exempt from debt collection?

Judgment creditors cannot enforce judgment awards against certain individuals. These plaintiffs either have minimal income to garnish or income from public funds. Under federal and New York State law, certain assets and sources are exempt from income collection. Funds exempt from collection include:

• Social security
• Small industry
• Disability
• Pension
• Child support
• Spousal maintenance
• Unemployment insurance
• Veterans Benefits
• Compensation of workers
• Public assistance

The first $2,850 is exempt from being deposited into your bank account, if it includes exempt direct deposit benefits listed above (even if your account also has income from other sources, such as wages). If there are no exempt benefits in the bank account, the first $3,120 is exempt from the deposit.

If you receive PA or SSI, all of your earned income is exempt from debt collection.

Your earned income is exempt from recovery if your weekly take-home pay is less than 30 times the weekly minimum wage, after tax. Currently, the minimum wage in New York City is $10 per hour for businesses with 12.00 or fewer employees ($12.00 x 30 = $360.00), and $11 per hour for businesses with 13.00 or more employees ($13.00 x 30 = $390.00). In Nassau, Suffolk and Westchester Counties, it is $11.00 per hour ($11.00 x 30 = $330.00). In the rest of the state, it's $10.40 per hour ($10.40 x 30 = $312.00).

I get a lot of calls from debt collectors. What are my rights?

Debt collectors work for a company or lawyer who is paid to collect debts. Some debt collectors use abusive and illegal methods such as repeated threatening phone calls. Debt collectors are regulated by a federal law, called the Fair Debt Collection Practices Act (FDCPA), and New York state laws that require them to treat creditors fairly.

What should a debt collector tell me about a debt?

Within five days of first contacting you, the collector will send you a written notice telling you how much money you owe, the name of the creditor to whom you owe the money. is, and what action you can take if you believe you don't. Amount due

How do I dispute my debt?

If you believe you don't owe the money, you should write to a debt collector to dispute the debt and request verification of the debt. After the debt collector receives your dispute letter, the debt collector must stop all collection activities, obtain a confirmation of the debt from the creditor, and send you proof. Unless the required proof is provided, the debt collector cannot attempt to collect the debt, or even start a lawsuit against you.

Can I stop a debt collector from contacting me?

Yes. You can write a letter called a "cease letter," asking the debt collector to stop. After the debt collector receives your letter, the debt collector may not contact you except to confirm that there will be no further contact, or to let you know that the debt collector Will take specific action to collect, such as bringing a lawsuit.

What type of conduct is prohibited by the Fair Debt Collection Practices Act (FDCPA)?

The FDCPA prohibits harassment and deceptive collection practices. Specifically, a debt collector cannot:

Tell third parties like your neighbors, friends or relatives about your debt

If you have a lawyer, contact you.

Contact you after writing a "substantial" letter (except to acknowledge the letter)

Telephone again and again

Call you at an inconvenient time, usually before 8am and after 9pm

Contact you in any way that makes it public that you owe money, such as a postcard or publishing your name.

A debt collector may not use false or misleading statements or threaten or harass you when collecting a debt. For example, they cannot misrepresent the amount you owe. A debt collector must not falsely claim:

• Representing a government agency
• Become an attorney or law firm
• Working for a credit bureau
• That you have committed a crime.
• That if you do not pay your debt, you will be arrested.

That the collector will seize your property, levy taxes on your bank account or garnish your wages without a court order.

A debt collector cannot threaten or harass you:

• Using obscene, derogatory or insulting remarks
• Making threats against you or your relatives

Debt collectors may not engage in unfair practices such as:

The imposition of charges or fees is not authorized by court or state laws.

• Collecting more than what is owed
• Submit a postdated check before the due date.