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Understanding Your Rights as a Creditor in Debt Collection

 Posted on October 13,2023 in Debt Collection

Chicago Creditor Rights LawyerBeing a creditor in Illinois means having legal rights and protections when it comes to debt collection. Understanding these rights is essential for effectively navigating the process and ensuring fair treatment. If you are a creditor seeking legal guidance, contact a lawyer to assist you in protecting your legal rights. Your attorney will ensure you understand the rights granted to creditors in Illinois and shed light on key aspects of debt collection in the state. 

Illinois Collection Agency Act

This act regulates debt collection practices in the state. It sets out guidelines and requirements for both creditors and debt collectors. Under this act, creditors are entitled to:

  • Right to collect debts – Creditors have the right to collect unpaid debts owed to them. This includes sending letters or contacting debtors to request payment. 

  • Verification of debts – If a debtor disputes the debt, the creditor must provide verification or validation of the debt within 30 days.

  • Legal action – Creditors have the right to file a lawsuit against a debtor in Illinois to recover the outstanding debt. This includes obtaining a judgment and pursuing collection efforts. 

Fair Debt Collection Practices Act 

This act applies in Illinois and provides additional protections for creditors. Some key provisions include the following:

  • Prohibited harassment – Debt collectors cannot engage in harassment, threats, or abusive behavior when attempting to collect a debt. Creditors have the right to be treated fairly and respectfully.

  • Communication restrictions – Debt collectors must adhere to certain communication limitations, such as not contacting debtors at inconvenient times or places and not disclosing the debt to third parties without permission.

  • Validation of debts – If a debtor disputes a debt in writing within 30 days of receiving a validation notice, the debt collector must cease collection efforts until the debt is verified.

Judgment Enforcement 

Once a creditor obtains a judgment against a debtor, they have the right to pursue various legal avenues to enforce the judgment. These may include:

  • Wage garnishment – Creditors can seek a wage garnishment order, enabling them to collect a portion of the debtor’s bank account to satisfy the outstanding debt. 

  • Bank account levy – Creditors may petition to freeze and seize funds from the debtor’s bank account to satisfy the outstanding debt.

  • Liens – Creditors can place a lien on the debtor’s property, which can prevent them from selling or refinancing until the debt is satisfied. 

Contact a Chicago, IL Debt Collection Lawyer 

For legal help in collecting debt, contact the skilled Chicago, IL debt collection attorney with Dimand Walinski Law Offices, P.C.. Call 312-704-0771 for a private consultation.

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