Credit Collection Laws You Need to Understand Under The FDCPA
Debt Collectors have an arsenal of tools and techniques that they can use to get debtors to pay their honest debts. Collection agencies are specialized companies that focus solely on recovering delinquent credit from debtors. It is their right to use many methods, but it is certainly not an „anything goes” situation.
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The Fair Debt Collection Practices Act (FDCPA) is a law that regulates the practices of debt collectors. Every good collection agency operates under these guidelines, as the very premise of their dealings with the debtors. Following are some of the credit collection laws that are found in this act.
There are laws that regulate what debt collectors can do. First of all, the collector must state their name inform the debtor that all information obtained will be used to help collect the debt. They must also state where the debt was original acquired, or who the creditor is, notify the debtor of their right to dispute the debt, and also provide verification of the debt.
There are an even more specific set of laws concerning what is prohibited. There are set hours when a collector may contact the debtor by phone (8am-9pm). Also in regard to telephone contact, there can be no harassing by repeated or constant ringing or calling, no calling at all if a written request has been given that the calling cease, and no calling a workplace if it has been made known that it is not acceptable. Of course, any abusive or profane language is prohibited in any phone conversation.
The debt collector is not allowed to communicate with the debtor if they are recognized as having legal representation. Another condition is if they are awaiting verification of the debt. Threatening legal action when none will actually be made is illegal, as well as any other form of misrepresentation or deceit. This includes requesting amounts over that which the debtor agreed upon in the original contract.
Contacting media outlets and revealing debt information to family or friends is an absolute no-no for the debt collector. The collector can discuss the account only with the debtor himself.
A collection agency can be fined for violating the rules mentioned above. Also, a consumer who is dealt with in a less than professional way has the right to sue under this act. The consumer can sue for damages if the collector does not follow the credit collection laws outlined in the FDCPA.
Reputable collection agencies are eager to avoid any fine or suit that may come by refusing to stay within the guidelines of this plan. However, there are the less reputable companies that still use tougher, and unacceptable methods to get the debtor to pay. Also, sometimes a collector might get too emotionally involved in a case and let their temper get out of hand. This can be a dangerous mistake, so most agencies are very careful to watch their collectors and ensure that they are following all the guidelines that are given.
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Debt Consolidation and Credit Card Management is a solution that has worked for many families facing financial difficulties. If you choose to go this route, find a reputable company, like Primark Solutions and work with them to consolidate your debts and get your bills under control.
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