Collection Agency

Consumer Rights

Collection AgencyConsumer rights is a broad term and it all about rights a consumer have in dealing with business, products or information. However here we are dealing with information, privacy and consumer debt relief. Under state and federal laws a consumer has certain rights in reference to keeping personal information, financial details and rights to accept or reject information or products.

Collection Agency is well defined business model that pursues individuals or business to collect payments on debt owed by them. These collection agencies have tie up with banks, credit card companies or business to act as their agents to collect debts from individuals and business for a small fee.

There are two types of collection agencies. The first type of collection agency is the one, which act as agents for creditors (banks, credit card companies, business etc). They pursue defaulters and recover complete debt for businesses. In exchange of that business will pay a percentage of full amounts to collection agency. The second type of collection agency is the one which work as debt buyers. They buy full debt from business for small amount (pennies against dollars) and then pursue defaulters to recover complete owed money. Business also uses this option to remove bad debt from their account receivables. This helps them to keep clean account and same time to get some money against defaulted accounts.

The FTC - Federal Trade Commission is what regulates this area. FTC can not solve your problem with the collection agency complaints but it can record them and also refer you to the best people for the job. You should know that even if you have not been a good debtor, you still have some rights, like the right to privacy, when a collection agency contacts you.

FTC governs companies that collect money and they register the collection agency complaints. They can even remove the license of operation for many collection agencies.

The Basic Rights

  • 1. The Fair Debt Collection Practices Act. FDCPA says that the collection agencies can not threaten you.
  • Also they can not give you calls before 8 in the morning or late, after 9 in the evening.
  • they can not call your friends or relatives.

Additional Rights

  • 2. If you inform them that you do not want them to call you, then they must register that complaint and not call you again.
  • If they do that, they are in violation of the FDCPA.
  • They can not threaten with law suits.

FTC Complaints Process

  • 3. If one agency tried to collect a false debit, you have to dial FTC at 877-FTC-HELP (877-382-4357).
  • You can even file collection agency complaints on the FTC website.
  • You have right to call police or take legal action against collection agency.

Other Ways

  • 4. Write to one branch of the Better Business Bureau and complaint against them.
  • Try the state Attorney General's office for help.
  • Try non-profit organizations which help people from harsh tactics of collection agencies.

Go to Court

  • 5. You can take the agency to court if you want and handle the matter by using an attorney.
  • Have proper documentation ready before taking legal action. Legal action is costly so keep track of your calls made or received to collection agencies and any letters received from them. Keep your original loan papers ready and proof of your payments made to lender or collection agency
  • Read more about consumer rights on FTC website and access FTC complaint web page. Additionally visit our Consumer Protection Website Links in America Consumer Protection Website Links.

How to make Complaints - Read full article

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Collection Agency Articles

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