What is a debt collector?

Debt collectors are typically people or agencies paid by creditors to collect on certain past due debts. But don’t panic if you have debts in collection — and don’t ignore the debt collectors either. Instead, educate yourself about your rights, the effects on your credit, and your best options for working with debt collectors.

Can debt collectors report a debt to a credit reporting company?

Debt collectors must take certain steps before reporting a debt to a credit reporting company. After the debt collector has followed the rules about how to contact you, they can report your debt to a credit reporting company, as long as they follow other laws about credit reporting.

How do I make a payment to a debt collector?

Be sure to get everything in writing. You can start the conversation on the phone, but don’t make the payment until the debt collection company sends you a written agreement. It should state: That the agreed-upon amount is sufficient payment for the entirety of the debt. How the debt collector will report the debt to credit bureaus.