Credit Collection Laws Under The FDCPA

A great number of tools and techniques exist that are utilized by debt collectors to have debtors to pay what they owe. 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.

The Fair Debt Collection Practices Act (FDCPA) is a governing body that regulates and statutes the behavior and conduct of debt collectors in general. 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 rules and regulations to state what is required of the collectors. 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.

The rules and regulations governing on what is prohibited are a bit more detailed and extensive. 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.

Additionally, no further communication can be made with the debtor if they are known to have representation by an attorney, or 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.

Certainly, the inclusion of media or even disclosing any debt information to family or friends is strictly and clearly prohibited. The collector can discuss the account only with the debtor himself.

For any breach of any of the rules stated above, a collection agency might be penalized with a sum of a fine. 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.

As mentioned earlier, most collection agencies are clearly advisable and take cautionary steps to stay well clear of any fine or suit that may come by neglecting to follow this plan, but 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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