There are several things that a person should be aware of when they are dealing with collection agencies. In fact, according to the Fair Debt Collection Practices Act, Americans have rights even when they are behind on their bills.

Therefore it is imperative that one is aware of these rights so that they can take action against debt collectors who are behaving in an unethical manner. Among the rights that the government guarantees:

A credit collector may only contact you between the hours of 8am and 9pm. No calls in the early morning or late night are allowed.

Your bill collector can only discuss the details of your debt with you and not your relatives or co-workers.

You have the right to request proof of the debt from the collector.

You have the right to request that communication be conducted through the mail as opposed to the telephone.

You have the right to negotiate with collection agencies and the agreed upon amount can be not be used against you in regards to reporting to credit bureaus.

The fact of the matter is that many Americans are unaware of these rights that are afforded to them under the law. Because of this, it is all too common for individuals to avoid credit collectors calls and letters in the hopes that the problem will go away.

Unfortunately, wishing the problem to go away is among the worst courses of action that one can take. Your creditors have the right to sue you and have your day in court so it is in your best interest to reach a fair and equitable settlement.

Today, with the economy in shambles, it is possible for one to settle with debt collectors and avoid a negative report being filed with the credit agencies. In most situations this the preferable course of action. However, it is important to engage and speak with your creditors to avoid an escalation of the situation.