Collection Companies Violating Rules May Face Penalties

In the United States of America, an individual who owes funds cannot be treated disrespectfully

. He or she is protected with laws concerning debts. A collection company may be annoying in trying to get the money back but there is no way they can harass someone just to collect the money. As evidence, a collection company paid $2.5 million as penalty for violating the laws that protect debtors. Debt collection companies are required to stick on the rules behind the Fair Debt Collection Practices Act (FDCPA). The FDCPA is a law made by the government that regulates the process of recovering debts. Not following the set of rules in this law can possibly place a collection company to face the ruling of the Federal Trade Commission.

There are many rules under the FDCPA. Most probably, the most important requirement a collection agency need to attend first is to acquire a license within the state government before collecting debts from the said state. Then, under the FDCPA, the collector of the debt cannot use verbal abuse or physical threats on debtors just to make them pay for what they owe. Moreover, everyone must be reminded that a debt collection company is still under the power of the creditor. Every step a collection company will make must be known by the creditor. A collection company can never file a lawsuit without the creditor company suggesting. The FDCPA also prohibits a collection company to share information about the debtor which means any kind of information cannot be released regarding the debt whether to the debtors friends, family, or even ones employer. If this will be done by the collection company, it can be considered as harassment.

Anytime one gets harassed by a collection company, a complaint should readily be filed to the Federal Trade Commission (FTC). Makes sure about the details you will be writing on your complaint because the FTC will surely review it. In Arizona, they have consulted an Arizona Bankruptcy Lawyer to guide them in dealing with this situation.

by: John Raymond Collado

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