Although you have a right to your money and deserve to get it back from those you loaned it, some laws control how to collect a debt. The Fair Debt Collection Practices Act is an amendment to the Consumer Credit Protection Act and protects people who owe money. Knowing the debt collection laws is important to protect you and your company from a potential lawsuit.
The professionals at Kinum, Inc. in Virginia Beach, VA, are well informed of the regulations. If you have debts to collect, consider working with a team of professionals to protect yourself from debt collection laws. Call us today to learn more!
What is the Fair Debt Collection Practices Act?
The Fair Debt Collection Practices Act (FDCPA) prohibits third-party collection agencies from inappropriately contacting people who owe a debt. Although most of the regulations are obvious, they deserve to be acknowledged.
Evidence
Debt collectors are required to show proof that the consumer owes money. This can be a copy of an unpaid bill or any other documentation.
Harassment
Debt collectors may not harass, threaten, use profanity, or repeatedly call to annoy the consumer. They also may not contact the consumer’s family and friends unless they are trying to obtain an updated phone number or mailing address.
False Statements & Misrepresentation
Debt collectors cannot claim to be someone else or lie to collect a debt. They may not pose as an attorney, government representative, or a representative from the credit reporting agency.
Unfair Practices
Debt collectors may not attempt to collect more than the consumer owes or the state allows. If the consumer provides a post-dated check, the collector may not deposit the check until that date.
Misleading Threats & Correspondence
Debt collectors may not threaten the consumer with legal actions they are not allowed to pursue. They also may not send a consumer a document that mimics a court or government document.
A Consumer’s Right to Sue
The consumer has the right to sue if they believe they have fallen victim to any of the acts mentioned above. That’s why a company must hire a collection agency that is knowledgeable of the regulations and reputable. Your best form of protection is to work with a company that is skilled in collections so that you don’t accidentally find yourself in a lawsuit.
Call Kinum, Inc. today at 1-888-471-0280 to work with a highly-rated debt collection agency.
