Debt Collection Has Become An Issue With Some Consumers

Category: Finance.

Debt collection has become an issue with some consumers. Some of the more common methods that lenders use include sending letters of delinquent payment and perhaps placing phone calls to the borrower s home.

Generally, debt collection procedures do not begin until after the lender has tried a variety of ways to get paid what is owed them. When these methods have proven to be futile, the lender may pass the loan onto a debt collection agency or company. In some cases these tactics were more along the lines of harassment and intimidation than they were good business practices. In times past, debt collection agencies could and would use a variety of tactics to get people to pay. It was not uncommon for some agencies to call a borrower s place of work. Other companies would falsely tell people that they( the debt collection agency) were going to garnish wages if the bill wasn t paid quickly.

Some of the more aggressive types would call regularly and that often caused trouble for the worker. Many consumers did not know that wage garnishments have to come through a court and cannot be levied by a debt collection agency. Some were verbal and some were written. There were plenty of other tactics used as well. After years of abuses such as these, the Federal government finally had to step in and impose certain limitations on debt collection agencies. Under these rules, collectors are not allowed to do certain things. Today, these same types of agencies have to follow guidelines and rules as stated in the Fair Debt Collection Practices Act.

These include: Debt collectors may not harass, oppress or abuse anyone. In addition, they are not allowed to publish a list of consumers who refuse to pay their debts, except to a credit bureau. They may not use threats or harm the person, his property or his reputation. The use of obscene or profane language whether in person or over the telephone is strictly prohibited. Debt collectors are not allowed to use false information in order to get a person to pay up. Repetitive telephone calls to harass the person are also not allowed.

Unless it is true, debt collectors are not allowed to say that they have attorneys working the case. They cannot falsely imply that you have committed a crime. They may not act as if they are attorneys working on the case unless they really are. In other matters, they are not allowed to falsely represent that they work for any credit bureau. They cannot tell you that papers being sent to you are legal forms when they are not and vice- versa. Debt collectors must not misrepresent the amount of your debt. They cannot tell you that you will be arrested if you do not pay your debt.

Lastly, they cannot try to frighten you by telling you that they are going to take legal action against you if that action is not available as a legal course of action. In addition, they are not allowed to seize, attach or sell, garnish your property or wages without court approval. You can learn more about your rights and what to do if you are abused by visiting any of the consumer right s websites.

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