Debt Collection Procedures

October 21, 08 by admin

It can be quite nerve racking when the bill collectors are calling and sending demand notices, however you can handle it. There are ways you can protect yourself and also ways to properly handle your debt collectors. There is a bill meant to help individuals deal with aggressive debt collectors. The Fair Debt Collection Practices Act is a guideline that must be followed when a debt collector is attempting to collect payment on a debt.

When a Collection Agency contacts you? The first time a collection agency contacts you; it must give its name and address, and the name of the original creditor (the business or person you owe money to). It must also tell you in writing the amount of the debt and any fees which have been added, such as, interest or collection fees. You must also be informed of your right to dispute the information.

If you send a written statement requesting a collection agency to stop, it cannot continue to call or write to you to demand payment.When contacting other people.If you have an attorney, the law prohibits a collection agency from contacting anyone other than your attorney. If you do not have an attorney, the agency can contact other people only to find out where you live or work. The collector cannot tell these people that you owe money. In most cases, the Collection Agency can contact another person only once. These same rules apply to contact with your employer.

Notifying a credit bureau. A Debt Collection agency can contact a credit-reporting bureau about the debt, but if you have disputed the debt in writing that also must be included in the report. Adding additional charges;To determine if the collection agency can add additional charges onto your debt, consult your original contract. If you agreed to pay “collection costs,” the agency can add reasonable charges such as attorney fees, court costs, or credit reports. If the agency is collecting on a bad check, it can add collection and legal fees as allowed by state law.