Debt Collection

Many of us don’t know that there are a number of debt collection laws that serve to protect debtors from threats or harassments by business companies and their debt collections agencies. People often have the misconception that since they are faced with a financial business company, every action performed by this institution is legal and justifiable but little do they know that some agencies usually resort to harassment just to ensure a steady flow of profit.

The law that you should be primarily concerned with is the Fair Debt Collection Practices Act (FDCPA). It’s a federal law but interpreted slightly differently in each American state. Therefore, you should know your own state’s interpretation of debt collection laws to give you a complete grasp of how it can be used to optimize your protection as a debtor.

Debt Collection Laws will not help you clear your debts but at least it will help you decrease your chances of being threatened or harassed by debt collections agencies. For instance, if you are annoyed by a collections agency’s constant mails and phone calls, you can express your distress to your creditors in writing and by all means they should stop bothering you. As a matter of fact, after they receive your letter, they are only allowed to send back one more letter as a confirmation as well as to tell you what they plan to do next. Usually, they will say that they are going to file a case against you if you don’t pay within a given time frame. Though it didn’t help you settle your accounts, it got rid of all the stress associated with their constant attempts to contact and get a hold of you.

Debt Collection Laws also set requirements for debt collectors’ actions. For instance, they are not allowed to divulge your debts with other parties, of course with the exception of your debt lawyer if you’ve hired one. They can’t treat you with force or intimidation. They can’t make claims falsely; for example, saying that they’re going to take legal action if nonpayment persists when it’s not always what should be especially for time-barred debts.

Getting to know debt collection laws is a must to avoid all the unnecessary stress associated with debt recovery.

Things to Know About Debt Collection Laws

The following tips will help you understand debt collection laws so you can optimize the respect that you deserve as well as to prevent all unnecessary threats and harassment by collections agencies.

1. Basically, what you need to know about debt collection laws is that collections agencies are not allowed to treat you with violence or force. They are prohibited to harass you. For example, if you request that the collections agencies stop bothering you through mails and phone calls, they should immediately stop doing so.

2. Debt collection laws don’t allow collections agencies to collect a greater amount of money than what is really owed. This is intolerable and must be right away reported to authorities.

3. Debt collection laws are geared at upholding the debtor’s right to confidentiality. They should carry out all essential steps in making sure that no amount of information regarding the debt is shared with any third party such as family members, friends, etc.  The only person that they should contact is no other than you.

4. Debt collection laws prohibit selling of the debtor’s information to its marketing allies. They are never allowed to generate more money from a borrower’s personal information than they are permitted to collect for the borrowed amount.

5. Debt collection laws don’t allow debt collectors to call a debtor from 9:00 PM to 8:00 AM.

6. Debt collection laws require debt collectors to observe veracity at all times. They should never misinform or mislead the borrower by giving false information such. For instance, they may claim that the debtor has violated some money borrowing laws; or that the debtor needs to pay more than what they actually owe; and other dishonest statements.

Debt collection laws have been legislated to uphold the human rights of borrowers; to protect them from violence, harassment, force or intimidation by debt collectors. If you have been a victim of debt collectors, don’t ever have a second thought to report it; oftentimes, a debtor who sues a debt collector for inhumane and unfair treatment wins the case.

It’s about time to be familiar with debt collection laws never allow you to be abused by these debt collections agencies. It’s time to stand up for your right.

Also read more on Get the Best Debt Recovery Specialist