The Fair Debt Collection Practices Act has proven to be very useful to people in need of reducing problems associated with harassing debt collectors. And, yes, it also has many benefits for the collection agencies as well. Through the enactment of sensible laws, the Fair Debt Collection Practices Act compels collection representatives to act in a professional manner that will ultimately benefit them as well.
Those in the business of extending credit have the reasonable expectation of being paid back on time. Whether its a product/service delivered with the understanding to pay upon receipt, or an individual is loaned thousands in unsecured credit card advances, the lender deserves repayment of the debt.
For sure, there are instances when the lender is not getting the payments he/she is due. There can be a number of reasons for this. Sometimes, the borrower needs more time to wiggle out of bad financial circumstances. At other times, they can simply be negligent and default on their obligation. Regardless of the reason, the lender is within their rights to seek payment.
This is the place where collection agencies become very important. Their aim is to collect the monies doe their clients. However, they cannot act in a reckless manner in attempting to collect these past due accounts. Here is where the Fair Debt Collection Practices Act comes into play.
The Fair Debt Collection Practices Act was first enacted in 1978. Since then there have been amendments added and modifications to the Act that have altered the law in some ways. For instance, an added clause to The Fair Debt Collection Practices Act states that a borrower in collections can request that the collection agency cease contact with him/her, and the collections rep must cease further contact.
However, it should be noted that this does not prevent the collection agency from continuing to pursue a valid debt. Collection agencies are still within their rights to let the debtor know of their intention to pursue the debt by other legal means, through an attorney.
This will only occur if the debtor informs the collection rep in writing. If the communication has stopped because of the inability to reach the delinquent payer, then it is legal to pursue third parties in a courteous, non-threatening manner. Additionally, the collection rep will not be allowed to disclose the call is over debt issues so as not to invade the privacy of the delinquent payer. Do these rules seem somewhat skewed to help out the delinquent payer? To a degree, yes; however, they also help the collection agencies stay out of trouble by engaging in unprofessional conduct.
As these rules and laws clearly demonstrate, the purpose of the Fair Debt Collection Practices Act is to eliminate unprofessional and abusive behavior on the part of some collection agencies. Such behavior undermines the credibility of the business and also makes it difficult to collect revenues. After all, who wants to deal with collection agencies that are abusive?
Collection agencies found to be in violation of The Fair Debt Collection Practices Act can be penalized in a number of ways, to include legal actions. They can also have their license revoked. Most common are fines levied against offending agencies. However, collection agencies are within their rights to appeal these fines.
The Fair Debt Collection Practices Act is both a lengthy law, and can be rather complex. It is posted in its entirety on the Federal Trade Commission's website. Those wishing to explore the entire treatise are invited to do so.
Those in the business of extending credit have the reasonable expectation of being paid back on time. Whether its a product/service delivered with the understanding to pay upon receipt, or an individual is loaned thousands in unsecured credit card advances, the lender deserves repayment of the debt.
For sure, there are instances when the lender is not getting the payments he/she is due. There can be a number of reasons for this. Sometimes, the borrower needs more time to wiggle out of bad financial circumstances. At other times, they can simply be negligent and default on their obligation. Regardless of the reason, the lender is within their rights to seek payment.
This is the place where collection agencies become very important. Their aim is to collect the monies doe their clients. However, they cannot act in a reckless manner in attempting to collect these past due accounts. Here is where the Fair Debt Collection Practices Act comes into play.
The Fair Debt Collection Practices Act was first enacted in 1978. Since then there have been amendments added and modifications to the Act that have altered the law in some ways. For instance, an added clause to The Fair Debt Collection Practices Act states that a borrower in collections can request that the collection agency cease contact with him/her, and the collections rep must cease further contact.
However, it should be noted that this does not prevent the collection agency from continuing to pursue a valid debt. Collection agencies are still within their rights to let the debtor know of their intention to pursue the debt by other legal means, through an attorney.
This will only occur if the debtor informs the collection rep in writing. If the communication has stopped because of the inability to reach the delinquent payer, then it is legal to pursue third parties in a courteous, non-threatening manner. Additionally, the collection rep will not be allowed to disclose the call is over debt issues so as not to invade the privacy of the delinquent payer. Do these rules seem somewhat skewed to help out the delinquent payer? To a degree, yes; however, they also help the collection agencies stay out of trouble by engaging in unprofessional conduct.
As these rules and laws clearly demonstrate, the purpose of the Fair Debt Collection Practices Act is to eliminate unprofessional and abusive behavior on the part of some collection agencies. Such behavior undermines the credibility of the business and also makes it difficult to collect revenues. After all, who wants to deal with collection agencies that are abusive?
Collection agencies found to be in violation of The Fair Debt Collection Practices Act can be penalized in a number of ways, to include legal actions. They can also have their license revoked. Most common are fines levied against offending agencies. However, collection agencies are within their rights to appeal these fines.
The Fair Debt Collection Practices Act is both a lengthy law, and can be rather complex. It is posted in its entirety on the Federal Trade Commission's website. Those wishing to explore the entire treatise are invited to do so.
About the Author:
David P. Montana, who has been an author, lecturer and business advisor in debt collection services for thirty years, offers additional tips and tools on The Fair Debt Collection Practices Act
Aucun commentaire:
Enregistrer un commentaire