Debt Collection Practices - What is Allowed and not Allowed?

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Debt Collection Practices – What is Allowed and not Allowed?

May 8th, 2008 by Kenny

Doesn’t it seem like debt collection companies can do no wrong? Like call you at awkward times of the night. Or just talk to you any old kind of way. How about threaten harm to you? Well, don’t threat because most of these practices are illegal and are punishable by jail time and even fines. The problem is that most people don’t know their rights according to the Fair debt collection act.

Before we go any further lets define what a debt collector is? A debt collector is anyone who regularly collects debts owed to others. This may include attorneys or debt collection companies that collect debt regularly.
Debt collectors use a lot of tactics to get uncollected money from indebted individuals. Some may be scare tactics or harassment. But many may ask can debt collectors contact you? Yes, debt collectors can contact you. They can contact you by mail, in person, fax, telegram, or telephone. But they must not harass you. The collection companies also have to adhere to a strict federal code that states that the debtor can request by letter that the collection company not contact them anymore. Once that is said the collection company cannot contact you anymore except as to inform you of some action. After that they are only allow to contact your lawyer. Please note that this kind of action does not make the debt go away. You will still owe the debt.

What other practices are prohibited?

1. Harassment – debt collectors may not threaten with the use of violence, publish a list of consumers who refuse to pay their debts or use profane language and use the phone to annoy the debtor.

2. False statement – debt collectors can’t pretend to be something that they are not for example a attorney. They may not imply that you are committing a crime, may not misquote your debt commitment, not indicate the legal forms are being sent when they are not and say that they are not sending legal forms to you when the form are legal in nature.

Debtor is protected by many laws that are meant to protect the public from collection companies that are not on the up and up. It is just our task to know these laws and use them to our advantage when dealing with paying off debt.