Debt collection agencies are a third party that is used by a vendor to collect a debt. They are hired for the sole purpose of obtaining an outstanding payment. Usually this type of agency is hired after attempts were made by the creditor or internal business office to settle an outstanding payment.
Collection practices have always been very unregulated. The regulations that govern the behavior of debt collectors are very loose and general. Collection practices typically vary from state to state and the tactics used by various agencies differ depending on the agency. The first step of many attempts at debt collection is the phone call. Collection call laws are in place to govern the behavior and procedures of the attempts to collect debts.
Collections
The Fair Debt Collections Practices Act or FDCPA does offer some guidelines that are supposed to govern the practices relating to debt collection. The code of conduct for collections is an exhaustive list. Here are a few of the basic regulations relating to phone calls as outlined by the FDCPA.
Phone calls are limited to the hours between 8am and 9pm. Calls outside of those hours are considered not acceptable.
Debt collectors may call you at work but only if you have not communicated to them that these calls are not acceptable at your place of employment.
Communication is expected to be professional and non-threatening. They are not allowed to harass, verbally abuse, use profanity, or threaten violence.
They must identify themselves as a debt collector. They are not permitted to conceal their identity or try and get information under false pretenses.
They are expected to share information only with the person it relates to. They cannot discuss your information with anyone other than you unless you have given permission for them to do so.
Regardless of the laws and practices it is not uncommon that debt collection agencies have legal actions and complaints against them for questionable collection practices. Code violations, illegal behaviors scare tactics and a disregard for the rules are often the basis for many lawsuits and complaints relating to debt collections.
Being on the receiving end of debt is never a fun place to be. It can be embarrassing, intimidating and stressful especially when debt is at the point of moving to the collection agency. Consumers who are in the middle of debt collection can arm themselves by knowing the rules that guide the practice and their rights as consumer. Reports of violation of any of the practices by debt collectors can be reported to the Better Business Bureau.
Debt Collection Call Laws
S. Mckenzie works for Hamilton Debt Relief, a provider of debt relief services for consumers struggling to pay off credit card debt.
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