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TOP 10 things debt collection agencies / debt collector should or should not do according to FDCPA and FTC

May 7, 2014
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It has been a real struggle for debt collection consultant,debt collection agencies and collection attorneys /law firms to clearly integrate debt collection software into their operations.Some cheap collection software can not integrate FDCPA laws into their software,but good debt collection software DO follow FDCPA and FTC laws. The most challenging part for a collection agency  has been on deciding whether or not to leave voice-mail messages for debtors. Owing to the potential consequences as highlighted by the Federal Fair Debt Collection Practices ACT (FDCPA), and the consequent interpretation by the Federal Courts dating back to 2007, many agencies have found themselves in a quagmire. Although communication from an original creditor is not classified under the FDCPA rubric, individual state laws often put forward different requirements on what the debt collector can or can’t do. Here are the top 10 things debt collection agencies should or should not do:


  1. No early morning or late night calls: In as much as the client owes the debt collection agency a fortune, they cannot call the client before 9 am or after 8 pm. This means that in spite of the amount owed, the debtor is entitled to a quiet morning and a serene evening unless the client agrees to the call.So, in case the debt collection agency uses a cheap debt collection software, this is one aspect they need to factor in while deciding to make sure the software follow FDCPA laws
  2. Upon request, no calls at the workplace: If the debt collection agency is aware of the fact that the debtor’s employer doesn’t approve of such calls, they are obliged not to make the calls. Therefore, it’s upon the debtor to make it clear to the collection agency /collector so that the collector can include that in the details in their debt collection software for future call.A good debt collection software (LEAH debt collection software) should definitely have this feature .
  3. Avoid repeated or continuous calls: A debt collection agency should not place a string of calls in a day with reference to an outstanding bill. A good debt collection software will help monitor the number of calls made to a client in a single day.
  4. Restrain from verbal abuse: Debt collection agencies should not use profane language or issue threats to debtor over a debt.
  5. Don’t inform friends, neighbours, or family about a debt: The FDCPA allows that the debt collection agency may contact people who know about the debtor, maybe as a way of updating the address in their debt collection software, but they should never mention the money owed to the original debtor.
  6. Never misrepresent the amount owed by consumer:  Debt collection agencies should not ask consumers to pay interest, fees or other expenses that are not allowed by law of that state or country which can get them in trouble with FDCPA in USA. This includes adding extra fees that the original loan or credit agreement doesn’t allow.
  7. Never misrepresent yourself.The collector supposed to identify himself / herself  when calling a debtor.
  8. Must send written notice of debt: A debt collector is required to send a written notice of debt within five days of contacting the consumer.
  9. Must honor written request for no contact: Debt collection agencies must cease all contact if the consumer sends a written request to the collection agency to do so. The collection agency can still pursue the debtor legally in the court in that scenario.
  10. Must verify all disputed debts: The debt collection agency must update the details of a particular debt in dispute in their debt collection software, and provide the details in writing pending renewal of collection calls.


  REMEMBER : The debtor / consumer  have legal rights  even though they owe money

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