Asked in Credit and Debit CardsCredit ReportsDebt Collection
What can a collection agency do and not do?
November 23, 2010 5:23PM
Here is some topics of what collection agencies can and cant do
Collection Agencies can do:
- Inform the debtor the amount of the debt that was reported by the creditor
- Creditor's Name, a good collection agency will contact you in representation of their client.
- If you don't dispute the debt, after 30 days, the debt will be assumed valid to the collection agency
- Disputing the debt to the debt collector (in the first 30-days) in full or partial, the collection agency will verify with the consumer
- A collection agency will provide name and address from the creditor to you after you dispute the debt in the period of 30 days
What Certified Collection Agencies don't do:
- Contact someone that doesn't own the debt like; relative, employer, neighbor, in some cases co-signers may be contacted by the collection agency
- Threat Calls, harassment calls, threatening to harm your credit, garnishment or repossession or threatening the debtor with an arrest.
- Calls can be place between 8:00 AM to 9:00 PM, debtors time. Calls cant be at inconvenience places like at work.
- Using false information in order to collect the debt
Most of this regulations are from the FDCPA, Fair Debt Collection Practices Act, for federal collection laws