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.
Of course, there will be those instances where the lender is not receiving the payments he or she is due. There can be many reasons for this. Sometimes, the individual borrower needs a little more time to navigate out of a bad financial situation. In other instances, the borrower is simply negligent and defaults. Regardless of the reason, it is within the rights for the lender to seek payment.
This is the area where collection agencies become important. Their goal is to get the payments due their clients. They cannot, however, act recklessly in attempting to collect these debts. This is where the Fair Debt Collection Practices Act comes into play.
The Fair Debt Collection Practices Act was enacted in 1978. There have been added amendments and modifications to the Act that have altered it in some ways. For example, a new clause to The Fair Debt Collection Practices Act states that a debtor in collections can request the collection agency to cease further contact with him/her, and the collections rep must comply with this request.
Keep in mind this does not prevent the collection agency from pursuing a valid debt. Collection agencies can still inform the debtor of their plans to pursue the debt through other legal means, namely through an attorney.
This can only occur if the debtor makes this request in writing. If communication has stopped because the collection agency can't reach the debtor, then it is legal to contact third parties in a courteous, non-harassing manner. In addition, the collections rep cannot disclose the nature of the call, so as not to violate the privacy rights of the debtor. While these rules can seem skewed towards the debtor in question, they also help the collection agency steer clear of trouble by engaging in unprofessional conduct.
As these laws and regulations clearly demonstrate, the aim of The Fair Debt Collection Practices Act is to curtail the abusive and unprofessional behavior on the part of some collection agencies. This behavior undermines the credibility and reputation of the business. It also makes it difficult to collect revenues. After all, no one wants to deal with rude, abusive collection agencies.
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. - 31377
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.
Of course, there will be those instances where the lender is not receiving the payments he or she is due. There can be many reasons for this. Sometimes, the individual borrower needs a little more time to navigate out of a bad financial situation. In other instances, the borrower is simply negligent and defaults. Regardless of the reason, it is within the rights for the lender to seek payment.
This is the area where collection agencies become important. Their goal is to get the payments due their clients. They cannot, however, act recklessly in attempting to collect these debts. This is where the Fair Debt Collection Practices Act comes into play.
The Fair Debt Collection Practices Act was enacted in 1978. There have been added amendments and modifications to the Act that have altered it in some ways. For example, a new clause to The Fair Debt Collection Practices Act states that a debtor in collections can request the collection agency to cease further contact with him/her, and the collections rep must comply with this request.
Keep in mind this does not prevent the collection agency from pursuing a valid debt. Collection agencies can still inform the debtor of their plans to pursue the debt through other legal means, namely through an attorney.
This can only occur if the debtor makes this request in writing. If communication has stopped because the collection agency can't reach the debtor, then it is legal to contact third parties in a courteous, non-harassing manner. In addition, the collections rep cannot disclose the nature of the call, so as not to violate the privacy rights of the debtor. While these rules can seem skewed towards the debtor in question, they also help the collection agency steer clear of trouble by engaging in unprofessional conduct.
As these laws and regulations clearly demonstrate, the aim of The Fair Debt Collection Practices Act is to curtail the abusive and unprofessional behavior on the part of some collection agencies. This behavior undermines the credibility and reputation of the business. It also makes it difficult to collect revenues. After all, no one wants to deal with rude, abusive collection agencies.
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. - 31377
About the Author:
David P. Montana has been a writer, lecturer and business consultant in commercial collection agencies services for thirty years. He offers additional information concerning The Fair Debt Collection Practices Act.
