Collection Agency Debt Collection

Usually, people dread getting a call from a collections agency on some unpaid colleciton agency debt, which the government try to make better via collection agency laws. However, if you owe money, it could be worse—the creditor might not be using a debt collector, and might be making collecting itself. The simple fact is, if you owe someone money, you’re almost certainly going to face collections efforts; however, if it’s a collections agency, you enjoy more protections than if it’s a creditor making the effort.

Collections Agency Definition

A collections agency or debt collector is someone who’s in the business of collecting the debts of others—a professional debt collector. The debt collector is not trying to collect his, her, or its own debt, but is instead collecting for a third-party. The collections department of a hospital, for example, is not a debt collector for purposes of the law; however, if the hospital turns the debt over to an outside agency, that outside agency is a debt collector.

Debt Collection Rules and Law

To begin with, don’t forget that everyone, debt collector not, is bound by the basic laws that govern society: no fraud, no violence, etc. However, there are collections agency laws that give debtors additional rights against debt collectors, including the right to tell the debt collect to collections cease and desist efforts. The main law in which these rights can be found is the Fair Debt Collections Practices Act (FDCPA).

Debtor’s Rights Against Debt Collectors

The FDCPA sets out a number of important rights, including that a debt collector can only call at reasonable times, is limited in what they can say to third parties (such as bosses, coworkers, and family), and cannot lie to or try to intimidate a debtor. One of the most important rights is that the debtor can tell the debt collector to go away; if the debtor tells the debt collector to cease and desist calling, that’s that—except for a very few permitted notices, communication must stop.

Debtor Rights Legal Assistance

Despite all the protections afforded a debtor, it’s a good idea for a debtor to have a debt collection lawyer advise and represent them. Not only will a lawyer generally be better able to invoke the protections of the FDCPA, but an attorney will also be able to negotiate on the debtor’s behalf, and (hopefully) work out an acceptable settlement or payment plan.