Collection Agencies And Your Rights
Below is a MRR and PLR article in category Finance -> subcategory Credit.
Understanding Collection Agencies and Your Rights
Overview
Learn about the rules and regulations that govern collection agencies and how they impact your rights.
Key Points
- Collection agencies operate under specific regulations that protect consumers.
- These rules do not apply to businesses collecting their own debts.
When a Collection Agency Contacts You
When a collection agency reaches out, it must provide:
- Its name and address.
- The name of the original creditor.
- The debt amount and any additional fees, such as interest or collection fees.
- Information about your right to dispute the debt.
Communication Limits
Under the Fair Debt Collections Practices Act (FDCPA):
- Agencies cannot contact you more than three times a week.
- Only one contact is allowed at your workplace.
- Calls are restricted to between 8 am and 9 pm.
- Harassment, intimidation, threats, or use of offensive language are prohibited.
Stopping Communication
You can send a written request to stop communication. Once received, the agency must cease calls and letters.
Contacting Others
- If you have an attorney, agencies must communicate exclusively through them.
- Without an attorney, agencies can only contact others to find your location or employment, and cannot disclose your debt.
- Generally, third parties can only be contacted once, including employers.
Reporting to Credit Bureaus
- Agencies may report your debt to credit bureaus.
- If you dispute the debt in writing, this dispute must also be included in the report.
Additional Charges
- Check your original contract to determine if additional charges can be added.
- If agreed upon, charges such as attorney fees and court costs can be included.
- For bad checks, state law governs the addition of collection and legal fees.
Payment Plans
- Agencies can demand full payment but are not required to accept partial payments.
Post-Dated Checks
- You can provide post-dated checks, but you’re not obligated to do so.
- Federal law prohibits depositing these checks before the written date.
- If dated more than five days in advance, you're entitled to notification before the check is deposited.
What Collection Agencies Cannot Do
- Publish lists of debtors.
- Use deceptive practices or claim to be from law enforcement or government agencies.
- Use fake court or government documents.
- Make collect calls or send collect telegrams.
- Violate postal regulations.
- Add unauthorized charges.
- Garnish wages or seize property without a court judgment.
- Threaten arrest for unpaid debts.
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Understanding and asserting your rights when dealing with collection agencies can help you manage your debts effectively and avoid unnecessary stress. Always review your contracts and stay informed about your legal protections.
You can find the original non-AI version of this article here: Collection Agencies And Your Rights.
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