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What can a collection agency do and not do?

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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