1. Who is Debtor?
The person who owes the bill or debt is the debtor.
2. What is a Debt Collection?
A debt collection is a type of financial account that’s been sent to a third-party debt collector. Debt collectors are companies who collect unpaid debts for others.
3. What to Expect When You Have a Collection Account
When you have a collection account, Debt collectors will send payment notices to the address they have on file for you.
4. What laws are followed by Debt Collectors?
Debt collectors are required to follow the Fair Debt Collection Practices Act, or FDCPA, when they’re collecting a debt from you.
5. How Collections End Up On Your Credit Report?
Your credit report contains information about your credit accounts, e.g. credit cards, loans, etc. Most, if not all, of your creditors send monthly updates about your payment status to your credit report.
6. What Does It Mean For Your Credit?
Your credit score will drop if a collection appears on your report. You may be denied for credit cards and loans in the future, especially if the collection is recent or remains unpaid or both.