Welcome to Debt Collection Guide
Debt Collection And Investigation Licensing Article
. For a permanent link or to bookmark this article for further reading, click here.
Knowing your Rights: The Fair Debt Collection Practices Act
Being in debt doesn’t mean that you are at the mercy of your creditors. In fact, in 1977, the United States Congress passed the Fair Debt Collection Practices Act. Commonly referred to as FDCPA, the Fair Debt Collection Practices Act was drafted in order to prevent debt collection agencies from abusing or harassing debtors. This act outlines the limits to which collection agencies can pursue debts. The act also specifies the legitimate steps that collection agencies can take in order to collect payments for debts. Meanwhile, the act also provides options as to how debtors can respond to debt collection agencies.
To begin with, what debts does the Fair Debt Collection Practices Act cover? Generally, the act is applicable to personal debts as well as family debts. It also includes household debts. More specifically, it applies to credit card debt, car payments, and even house mortgage. It also covers retail financing as well as costs incurred for medical care.
Before we delve further into the specifics of the law, it is important to remember that the Fair Debt Collection Practices Act only covers debt collectors who collect debt on behalf of others. This includes lawyers who pursue debts for their clients as well as collection agencies which conduct debt collection services for other companies. This means that this act does not apply to in-house collectors. In-house collectors are those who work for the collection department of the very business which you owe money to. For instance, a store has its own credit collection department. If the store’s collection department contacts you regarding a certain debt, it does not have to act according to the Fair Debt Collection Practices Act.
For your safety, it is important to know what practices are prohibited by the Fair Debt Collection Practices Act. Here are some of the activities that debt collectors may NOT do:
1) Your debt collector is not allowed to reach out to other members of your family or anyone else in your workplace.
2) The debt collector cannot harass you with repeated phone calls or unreasonable visits. This means that when he is contacting you regarding your debt, he can only call or visit within the hours of 8:00 am and 9:00 pm.
3) The debt collection agency cannot insult your person. He cannot use racial slurs. He is also not allowed to speak to you using profane or obscene language.
4) Unless he is backed by legal documents, the debt collector cannot threaten you with lawsuits or repossession.
5) The debt collector cannot falsely represent himself. He cannot use materials that will make the debtor think that he is a lawyer or he is affiliated with the government.
6) The debt collector cannot charge you extra fees, collection fees and other amounts that are not included in your original debt.
The Fair Debt Collection Practices Act was passed to make sure that debt collectors act honestly and fairly. It doesn’t favor debtors; it simply safeguards both parties from harmful activities.
Debt Collection And Investigation Licensing Specific links
Debt Collection And Investigation Licensing News
Collection agency used by three metro health systems under investigation - Detroit Free Press
Collection agency used by three metro health systems under investigation Detroit Free Press By Patricia Anstett A Chicago debt collection company with contracts at three large metro Detroit hospital systems is the focus of mounting investigations. Accretive Health was sued Thursday by Minnesota Attorney General Lori Swanson. |
Visy, Australian Packaging Company, Allegedly Used Hells Angels To Collect ... - Huffington Post
Visy, Australian Packaging Company, Allegedly Used Hells Angels To Collect ... Huffington Post The multi-million dollar packaging and recycling company Visy Industries, headquartered in Melbourne, Australia, has allegedly contracted members of the Hells Angels motorcycle club to collect debts, according to an investigation conducted by the ... |
Bikie gang links queried by Victoria Police - Herald Sun
Bikie gang links queried by Victoria Police Herald Sun VICTORIA Police yesterday revealed it has raised the issue of licensing debt collectors with the State Government. And Police Minister Peter Ryan confirmed the Government was examining whether it should reinstate debt collector licences amid ... |
Law Firm Protests Banking License Rule - Connecticut Law Tribune
 Connecticut Law Tribune | Law Firm Protests Banking License Rule Connecticut Law Tribune By THOMAS B. SCHEFFEY A Maryland law firm is challenging the Connecticut Department of Banking over a new state law that may require $800-a-year banking licenses for lawyers whose debt negotiation work is more than “ancillary” to their legal practice. |
Accretive Health's stock plunges after shakedown allegations - Chicago Tribune
Accretive Health's stock plunges after shakedown allegations Chicago Tribune "We are aware of the Minnesota attorney general's case and we're carefully monitoring the developments," said Sue Hofer, a spokeswoman with the Illinois Department of Financial and Professional Regulation, which licenses debt collectors. |