Tips for Dealing with a Collection Agency

 

Collection agencies are private entities that act on behalf of a creditor to collect payments for debts that have lapsed, are past-due or have defaulted. When we are forced by circumstances to deal with collection agencies, there are several things that we should bear in mind.

 

1. There is a law called the Federal Fair Debt Collections Practices Act, which governs all transactions and actions of persons involved in the collection of debts. This means that the law protects you from wrongful actions by collection agencies. Have all your transactions with collection agencies documented and reviewed for violations of this law.

 

You can see your rights on this site:

http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

 

2. Collection agencies must identify themselves, the creditor they represent and notify you the amount of the debt, fees and interest you owe them in writing. Never deal with collection agencies that violate this rule. They also must inform you of your right to challenge the information.

 

3. Collection agencies do not have additional legal authority over you as what is given to them and the creditors they represent, by law.  The collection agencies are not government agencies. They cannot in any way act as a government or law enforcement representative. Although in a few cases they can be duly deputized by the authorities, remember that they are private companies doing their business of collecting for the creditors.

 

4. As private companies doing legitimate business, they are required to have all necessary licenses and permits that are required by law. You may ask them to present to you these documents before dealing with them.

 

5. If you choose to have an attorney to deal with the collection agencies, the collection agency must then deal with your attorney only and is barred from contacting other people for information about you.

 

6. If a collection agency calls you up more than 3 times a week or between 9pm to 8am or calls you at your work more than once a week, you can report them to the authorities. They cannot in anyway jeopardize your job or upset your regular daily business routines.

 

7. You can sue a collection company when it harasses you or your family, threatens you violence, intimidates you by threatening to sue, uses derogatory language or even embarrasses you.  Such actions violate your basic rights under federal law.

 

8. You can send a written statement requesting them to stop writing or calling on behalf of your creditors. If they continue to call or write, they are in violation of the law.

 

9. Collection agencies cannot in anyway publish or release lists of people who are indebted to creditors. This is a violation of your privacy. The information about your