Collection Agency Laws
Collection agencies are subject to the Federal Trade Commission's Fair Debt Collection Practices Act. The act prevents debt collectors from "using abusive, unfair, or deceptive practices" to collect debt or information. This act applies to all collection agencies, debt lawyers and companies that purchase delinquent debts with the intention of collecting from them.
Other People Are Reading
-
Collection Contact Restrictions
-
Collections agencies must not initiate collection activities at inconvenient times or places. Collection agencies are restricted from placing calls or interactions to debtors before 8 a.m. or after 9 p.m. debtor time without the debtors' approval.
Place of Business
-
Collection agencies can contact the debtor at his place of business. But if the agency is told to cease calls or activity at the debtor's place of business, it must stop immediately. The request can be issued in writing or in an oral fashion.
-
Validation Notice
-
Collection agencies are required to issue a validation notice. The notice tells you how much money you owe, to whom you owe the debt and information on how to dispute the debt. This must be issued within five days of the agency's first contact.
Harassing Activities
-
Collection agencies must not harass or abuse debtors with their contact. They must not use threats, publish debtor information, use offensive language or repeatedly call to annoy.
Garnishment Restrictions
-
Collection agencies cannot garnish wages that result from federal benefits. These benefits include Social Security, supplemental security income, veteran's benefits, civil service and retirement benefits, student assistance, and other qualified benefits.
Approved Garnishments
-
Collection agencies have a right to sue for the payment of the debt. If the agency receives judgment, the agency can garnish your approved wages and bank accounts.
-
