The Fair Debt Collection Practices Act has proven to be very useful to people in need of reducing problems associated with harassing debt collectors. And, yes, it also has many benefits for the collection agencies as well. Through the enactment of sensible laws, the Fair Debt Collection Practices Act compels collection representatives to act in a professional manner that will ultimately benefit them as well.
Those in the business of extending credit have the reasonable expectation of being paid back on time. Whether its a product/service delivered with the understanding to pay upon receipt, or an individual is loaned thousands in unsecured credit card advances, the lender deserves repayment of the debt.
Clearly, there are instances when the lender is not receiving the payments they are due. There can be several reasons for this. Sometimes, the borrower may be experiencing financial difficulties and needs more time to pay their debt. However, at other times, they may simply be irresponsible about paying their debt and they default. Whatever the reason, the lender is fully within their rights to seek and expect payment.
This is where collections agencies come into play. Their goal is to acquire the payment due their clients. However, they may not take a Wild West style approach and do anything they wish to do in order to recoup a debt. This is where the Fair Debt Collection Practices Act comes into play.
The Fair Debt Collection Practices Act was first enacted in 1978. Since then there have been amendments added and modifications to the Act that have altered the law in some ways. For instance, an added clause to The Fair Debt Collection Practices Act states that a borrower in collections can request that the collection agency cease contact with him/her, and the collections rep must cease further contact.
However, it should be noted that this does not prevent the collection agency from continuing to pursue a valid debt. Collection agencies are still within their rights to let the debtor know of their intention to pursue the debt by other legal means, through an attorney.
This will only occur if the debtor informs the collection rep in writing. If the communication has stopped because of the inability to reach the delinquent payer, then it is legal to pursue third parties in a courteous, non-threatening manner. Additionally, the collection rep will not be allowed to disclose the call is over debt issues so as not to invade the privacy of the delinquent payer. Do these rules seem somewhat skewed to help out the delinquent payer? To a degree, yes; however, they also help the collection agencies stay out of trouble by engaging in unprofessional conduct.
As these rules and laws clearly demonstrate, the purpose of the Fair Debt Collection Practices Act is to eliminate unprofessional and abusive behavior on the part of some collection agencies. Such behavior undermines the credibility of the business and also makes it difficult to collect revenues. After all, who wants to deal with collection agencies that are abusive?
Those collection agencies that violate the Fair Debt Collection Practices Act can be penalized in a variety of ways, including legal actions, and up to license revocation. The most common would be a fine levied against the offending agency. Of course, it would also be possible for the collection agencies to appeal such fines since they are entitled to equal protection under the law.
The Fair Debt Collection Practices Act is a complex and lengthy law. Thankfully, it is posted complete and in its entirety online through the Federal Trade Commission website. Those wishing to read the entire treatise are recommended to do.
Those in the business of extending credit have the reasonable expectation of being paid back on time. Whether its a product/service delivered with the understanding to pay upon receipt, or an individual is loaned thousands in unsecured credit card advances, the lender deserves repayment of the debt.
Clearly, there are instances when the lender is not receiving the payments they are due. There can be several reasons for this. Sometimes, the borrower may be experiencing financial difficulties and needs more time to pay their debt. However, at other times, they may simply be irresponsible about paying their debt and they default. Whatever the reason, the lender is fully within their rights to seek and expect payment.
This is where collections agencies come into play. Their goal is to acquire the payment due their clients. However, they may not take a Wild West style approach and do anything they wish to do in order to recoup a debt. This is where the Fair Debt Collection Practices Act comes into play.
The Fair Debt Collection Practices Act was first enacted in 1978. Since then there have been amendments added and modifications to the Act that have altered the law in some ways. For instance, an added clause to The Fair Debt Collection Practices Act states that a borrower in collections can request that the collection agency cease contact with him/her, and the collections rep must cease further contact.
However, it should be noted that this does not prevent the collection agency from continuing to pursue a valid debt. Collection agencies are still within their rights to let the debtor know of their intention to pursue the debt by other legal means, through an attorney.
This will only occur if the debtor informs the collection rep in writing. If the communication has stopped because of the inability to reach the delinquent payer, then it is legal to pursue third parties in a courteous, non-threatening manner. Additionally, the collection rep will not be allowed to disclose the call is over debt issues so as not to invade the privacy of the delinquent payer. Do these rules seem somewhat skewed to help out the delinquent payer? To a degree, yes; however, they also help the collection agencies stay out of trouble by engaging in unprofessional conduct.
As these rules and laws clearly demonstrate, the purpose of the Fair Debt Collection Practices Act is to eliminate unprofessional and abusive behavior on the part of some collection agencies. Such behavior undermines the credibility of the business and also makes it difficult to collect revenues. After all, who wants to deal with collection agencies that are abusive?
Those collection agencies that violate the Fair Debt Collection Practices Act can be penalized in a variety of ways, including legal actions, and up to license revocation. The most common would be a fine levied against the offending agency. Of course, it would also be possible for the collection agencies to appeal such fines since they are entitled to equal protection under the law.
The Fair Debt Collection Practices Act is a complex and lengthy law. Thankfully, it is posted complete and in its entirety online through the Federal Trade Commission website. Those wishing to read the entire treatise are recommended to do.
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