According to The Fair Debt Collection Practices Act (FDCPA), debt collectors must follow certain rules when collecting debts from borrowers. If you feel that your debt collection agency is committing a violation of the FDCPA, do not hesitate to file a complaint to the FTC (Federal Trade Commission) and to State Attorney General's office. What provisions for borrowers are listed in FDCPA? Here are some of them:
The notification provision. Before proceeding with the regular debt collection, the collection agency must first send the borrower a notification regarding the transfer of the collection. The borrower must also receive a complete list of his/her rights in reference to the FDCPA.
The right to dispute. If you think that the charges in your account are incorrect, you have the right to dispute them within 30 days upon receipt of your bill. Send a dispute letter to your creditor through registered mail and explain the details of your complain. Upon receiving your letter, the creditor in question must start an investigation. Consequently, all collection activities must be stopped until the issue has been cleared.
The right to privacy. Debt collectors cannot disclose details about your debt to anyone except the borrower. Not even your relatives, friends, or employer should be questioned regarding your finances. Also, any attempts to contact you by phone can only be done between the hours of 8am to 9pm. Debt collection notices must be sent in a sealed envelope, not postcards. Furthermore, your name cannot be put on a public listing to force repayment.
The right to know truth. Debt collectors must never use false entities to disguise themselves. For instance, a debt collector cannot introduce himself as a representative of the FTC, a government prosecutor, etc. Debt collectors must not use lies to threaten the borrower to take fast action.
The right to respect. All borrowers- regardless of how large their debt is- deserve to be treated with respect and dignity. Debt collectors must never speak to you using abusive language, threats, name calling, and any form of harassment. You can also send a letter to your debt collector to stop its collection. However, this doesn't exempt the borrower from the responsibility to pay his debts. You are still under the obligation to pay your creditor even if debt collection activities have been stopped.
The reputable debt collection agency will aggressively push as hard as they are allowed within the law (and their own association's code of ethics) to get debtors to face the debt and to begin dealing with debt collectors.
The abusive debt collection company will violate Federal laws that came into being because of the collection industry's abusive practices. The abusive debt collector is in the game for a fast buck, and could care less if they operate within the law or not. They have the mind set that the amount they collect by invoking abusive methods far outweighs the cost of lawsuits they might incur for violating the Fair Debt Collection Practices Act.
The reputable debt collector is trying to run a business for the long haul. They compete for the business of large companies. A sure way to lose that business is to violate Federal laws, get sued for those violations, and expose their clients as named defendants in lawsuits for their misconduct. Collection agencies who care about longevity conduct their business within the law.
Abusive debt collection agencies feed out of a different bowl. They probably have purchased debts for pennies on the dollar. These debts usually have already been through two or three other reputable collection agencies, which failed to collect the debt. So, they own the debt.
Let's say the debt collector purchases a large portfolio of a million dollars of debt for 20,000 dollars. That is two cents on a dollar. If they can get the debtor to pay four cents on the dollar amount owed, they have made a nice profit. Of course, their expenses have to be paid out of that settlement amount first, which is why they would favor aggressive measures to get debtors to settle with as little expense to them as possible.
They will demand at least half or more when they begin to call. They rely on abusing the debtor into agreeing to pay as much as possible. Norman Taylor and Associates understands this game. They have been helping consumers for over 22 years and have successfully handled over 6,000 consumer cases. Debt collection abuse can be stopped and consumers have a right to fair debt collection practices. Dealing with debt collectors is not always easy, and this is why the best ally in these circumstances is not just an attorney, but a consumer advocate. Norman Taylor and Associates can be reached at (800) 764-7182.
About Norman Taylor & Associates - Consumer Advocates
Norman F. Taylor and Associates have been assisting consumers since 1987. At Norman Taylor & Associates, the goal is to provide clients with the highest quality of legal representation. The firm and its associates are experts in both the debt collection laws ? the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). They can provide you the help you need to end debt collection harassment and bring you peace of mind. They represent consumers in Los Angeles, Orange, Riverside, San Bernardino, Ventura and Santa Barbara counties. With a twenty two year history of successful cases, Norman Taylor & Associates has established their reputation as a firm of consumer advocates that get the job done.
Both Smith Andrea & Norman Taylor are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Smith Andrea has sinced written about articles on various topics from Debt Consolidation, Finances and Education. Andrea Smith is a writer and consultant with Consolidate4Free.com and has been providing consumers and business owners with Free Debt Consolidation Advice since 1990. For years she has helped people with loan and credit problems especially pertaining to. Smith Andrea's top article generates over 33100 views. to your Favourites.
Norman Taylor has sinced written about articles on various topics from Lemon Law, Legal Matters and Debt Reductions. Norman Taylor studied engineering at Arizona State University as an undergraduate. He attended Glendale School of Law, graduated and passed the Bar in 1986. Aside from advocating consumer rights he volunteers for international human rights efforts and spo. Norman Taylor's top article generates over 27100 views. to your Favourites.