Collection Agency Law Explained

Collection Agency Law Explained



Collection Agency Law Explained
If you have ever been contacted by a​ collection agency,​ you know that it​ can be an​ unpleasant experience .​
a​ collection agency can turn simple acts,​ such as​ checking the​ mail or​ answering the​ phone,​ into dreaded tasks .​
However,​ it​ is​ important to​ know that there is​ a​ law in​ place intended to​ protect the​ people that collection agencies contact .​
The FDCPA (Fair Debt Collection Practices Act) was enacted to​ keep debt collectors from abusing,​ harassing,​ or​ deceiving a​ person when attempting to​ collect a​ debt .​
It also gives debt collectors strict guidelines to​ follow when collecting a​ debt .​
In this article,​ we​ will have this collection agency law explained in​ simple terms,​ to​ better inform debtors of​ their rights.
For starters,​ the​ FDCPA outlines very clear practices for debt collectors to​ follow when contacting a​ debtor .​
Debt collectors are only allowed to​ call during reasonable hours (usually 8:00 a.m .​
– 9:00 p.m.),​ but they are also allowed to​ call a​ debtor at​ work .​
However,​ if​ the​ debtor notifies the​ collection agent that their employer wants the​ calls to​ cease,​ the​ debt collector must stop calling the​ person’s place of​ employment.
There are also rules of​ conduct a​ collection agency must follow when collecting a​ debt .​
a​ debt collector is​ forbidden from harassing any person from whom they are trying to​ collect a​ debt.Examples of​ harassment include excessively calling,​ insulting the​ debtor,​ or​ using obscene language .​
a​ debt collector is​ also not allowed to​ make false statements when collecting a​ debt .​
Examples of​ false statements include posing as​ a​ government official,​ making threats (lawsuits,​ imprisonment,​ seizing of​ home and property,​ etc.),​ or​ telling the​ debtor they owe more than they actually do .​
In addition,​ a​ debt collector can not use unfair practices in​ attempting to​ collect a​ debt .​
These practices include collecting an​ amount larger than what the​ debtor actually owes,​ or​ suing the​ debtor for a​ debt they do not owe.
The FDCPA requires collection agencies to​ notify debtors of​ their rights,​ and any correspondence (mail or​ phone) has to​ contain the​ information that the​ contact is​ being used to​ collect a​ debt .​
The only reason a​ collection agency can contact a​ third party (family or​ friend) is​ to​ acquire the​ debtor’s phone number or​ address .​
If the​ collection agency has this information,​ they are forbidden to​ contact a​ third party .​
It is​ also illegal for collection agencies to​ tell a​ third party that they are attempting to​ collect a​ debt.
The FDCPA is​ in​ place to​ protect the​ rights of​ debtor’s while making a​ collection agent’s job clear and concise .​
If a​ person being contacted by a​ debt collector feels that they are experiencing the​ violations discussed in​ this article,​ it​ is​ important that these misconducts are accurately documented .​
The reason for this is​ so that the​ claims can be proven if​ the​ debtor decides to​ take legal action.
Now that you have had this collection agency law explained,​ you should feel more confident about your rights if​ you are ever contacted by a​ debt collector .​
It is​ best to​ avoid the​ situation altogether by staying current on​ your debts,​ but it​ is​ good to​ know that the​ FDCPA exists if​ ever find yourself on​ the​ receiving end of​ a​ collection call.




You Might Also Like:




No comments:

Powered by Blogger.