Debt Collection Laws

Share Know as a citizen you have the right to avoid violations of debt collection laws, because you may have been one to suffer on the end of an embarrassing collection call.

This piece is here to tell you more in order to avoid things you should not be suffering, starting with the basic need of a debt collection request.

Often a debt owed is a debt owned, one party owes a debt, and the other owns that debt.

So long as it is clear that a debt agency owns that debt, normal billing can occur.

However in the event that it cannot clearly claim the ownership of that debt (ie a mistaken debt) courts will not look to kindly in the event that proof cannot be established.

This video by FTC may explain further about debt collection laws:

You must keep good records and attempt to make amends with the company. If this fails, work your way up to the court.

Debt collection law says debtors cannot harass you, tell you to pay today or else; others cannot call you at late ends of the night either.

They must timely sound out the billing and you must respond to it. Receiving a letter every three days for instance is grounds for harassment, compared to say one sent bi weekly to monthly status.

They cannot stand outside your place of business shouting at you, or slander you at your place of home if they serve court papers. They cannot send openly private debt information (envelopes without security functions) or request information out of the blue regarding your case without going through an appropriate request form.

If you do not respond to billing procedures that have been followed correctly, billing agencies may refer to a debt collection agency, which is fine, so long as they don’t harass you.

When this fails, they must take their claims to court to establish fee collection.

It works both ways essentially, debt collection law is supposed to be an affair of common contact and reasonability; if either party fails you have the matter handled by a superior official.

Debt collection agencies, or debt collectors are not civil police, they are citizens just like you. They cannot say you have committed an offense, and use that as leverage to get you to move.

You do not have to do no more, then work out a way to pay your biller (within a time of less than 90 days preferably) if you are holding a legally obligated debt.

A bigger part of this is that collection and late fees cannot be inappropriate. This is often why many loan agencies will establish the late fee in clear language in your bill. If you are unsure about what your billing agency charges, contact them for details.

If they cannot give you that information, ask for a person who can go over it with you. If both people cannot, ask someone who can provide a solution to this. If the late fees are not clearly explained (or given to you) and are charged, there are grounds for violation here in the eyes of the court.

Debt collection law is identifying reasonability.

If you are not given adequate notice to your case, and cannot solve your case with your debt agency out of irreconcilable grounds, you then should go to court.

No one may shout at you to move, and everything must be handled by paperwork with appropriate contact to follow up on this (a "what do I need", and "how to solve this question" mentality).

Understand what debt collections laws are. Do not stand for harassment, and file immediately if you feel you are being mistreated, at the very least to get a company to stop out of legality issues.   

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