Collection Agency Law Explained

If you have ever been contacted by a collection agency debt, you know you can be an unpleasant experience. A collection agency can turn simple acts such as checking email or answering the phone, on the dreaded task. However, it is important to know that there is a law designed to protect people who contact the collection agencies. The FDCPA (Fair Debt Collection Practices Act) was enacted to maintain debtcollectors abuse, harass, or deceive a person when you try to collect a debt. It also provides strict guidelines to follow with debt collectors collecting debts. In this article, we will have this collection agency law explained in simple terms to better inform borrowers of their rights.

To begin with, this Law is very clear about the practices of debt collectors must follow when in contact with the debtor. Collectorallowed only during reasonable hours (usually 8:00 to 9:00 p.m.), but also can call a debtor at work. However, if the debtor notifies the collector that your employer wants to terminate the call, the debt collector must stop calling the person at work.

There are also rules of conduct for the collection agency must follow when collecting a debt. A debt collector may not harass peoplewhom 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.