Collection Agency

Collection Laws

Collection LawsYou may have been contacted by a collection agency by now. If this is the case, then you know it can be quite ugly and unpleasant. But if you are not familiar with that, you should know that collection agencies have different rules and regulations to operate applicable in different state. Sometimes the collection agency laws are at the limit of decency and law. Some agencies really harass their clients. But you should know that there is a law that protects you against these collection agency laws and the way they treat you.

One very good law is the Fair Debt Collection Practices Act (FDCPA). The law was created in order to protect people against abuse and the special rules that collection agencies have. The FDCPA has some clear rules on collection agency laws and they say what is legal and what it is not.

The debt collectors are always allowed to call you. They can do it only between 8 AM in the morning and till 9 PM in the evening. Not an hour before that. But they can call you at work. What they are not allowed to do is contacting third party people like friends, family and so on. Also, they must not use bad language and harass you.

They can not call you if you tell them not to. They must not insult you or make false accusations. Saying that they will garnish the wages is a false statement. Telling you that you will go to jail and things like that is harassment.

The FDCPA allows them to inform you of the debt but not harass you. They can not take legal actions against you, only scare you and this is why they are trying to do that. The collection agency laws can be hard but you must learn to fight them every way that you can and using the laws that are helping you.

If you owe money to lenders and the account they are referring is correct then it is in your best interest to enter into collection agency negotiation. This gives you two fold advantages, first you buy time to deal with them and pay them at later date. Secondly negotiations can also reduce your original owed amount to lesser amount. Not to mention it stops them from reporting to credit bureaus about your pending payments. The last thing you do not want any derogatory remark in your credit report as it will severally damage your credit reputation and bring down credit score.

Collection agency laws vary state to state but overall all state bar collection agencies from using harsh and abusive tactics to recover money. The good thing is FDCPA law is applicable in all American states.

Fair Debt Collection Practice Act

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Collection Agency Articles

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