A collection agency acquires authorization to collect a debt on behalf of the original creditor. However, it is important that it adheres to
collection agency rules.
Collection Agency Rules
The reality is that both creditors and debtors view collection agency rules differently. It can be extremely frustrating for business owners when they find that their customers do not pay on time. While they would obviously want the agency to recover debts as quickly as possible they do not want the agency to harass their customers or violate the FDCPA. While it is legal right to demand the money due to a creditor, debtors too have certain rights that must be protected. It is because of this that agencies must comply with collection agency rules as laid down by the local and federal authorities – the most important act is the Fair Debt Collection Practices Act or FDCPA.
If agencies do not follow the collection agency rules and threaten debtors unnecessarily, businesses are likely to lose their customers or get into legal trouble. It is important that businesses hire an agency that commits to abide by the collection agency rules. If collection agency rules are not followed, the agency can be penalized for non-compliance.
Bill collectors should not call at unconventional hours. All calls must be before 8am and after 9pm. Regardless of whether a person owes money or not, s/he must relax after a tiring day and have a good night’s sleep. They are also required not to use obscene or threatening language on phone or while leaving a message.
Bill collectors cannot give wrong information about them and must clearly state who they are and who they work for. For example, they cannot portray as lawyers if they actually are not. This also means that if they do not have the authority to sue, they cannot threaten a debtor with a lawsuit. Moreover, collection agency rules clearly state that bill collectors cannot make false statements such as attaching salary or taking possession of the debtor’s property.
Collection Agency Rules
Bill collectors can only make one call or leave only one message per day. They must also provide a phone number where a debtor can call back. In addition, if a debtor asks not to be called on phone and should be contacted only through mail, the collection agency cannot question it.
The collection agency cannot process unauthorized payments nor can it process payments before the stipulated time. In case a debtor issues a post dated check, if the date is more than 5 days in the future, the collection agency must get it in writing from the debtor.
Collection agency rules have been designed for the protection of the rights of debtors and also to ensure that collection agencies recover money in respectful manner. A reputable collection agency while making an all out effort to collect money will also be sensitive to genuine problems of a debtor. This is of particular importance as businesses do not want to lose customers unless there is a genuine reason for it.
collection agency rules