Facts About Collection Agencies

A selected, short excerpt from Chapter 11 of The Secrets About Good Credit and Debt Reduction

What is the Fair Debt Collection Practices Act? Congress amended the Consumer Credit Protection Act with the FDCPA to address some critical issues concerning the conduct of debt collection businesses. If these issues were ignored, it could jeopardize the efficiency and effectiveness of the credit system.

What is meant by "debt collector"? We know a debt is any obligation to pay money as a result of some type of transaction. A debt collector is any person or persons whose principal business is the collection of debts. These businesses regularly collect or attempt to collect, directly or indirectly, debts due to another party. They are commonly called collection companies.

How are collection agencies required to communicate with me? During reasonable hours, collection companies may not communicate with you at any unusual time or place that is known to be inconvenient to you or at your place of employment if they know your employer prohibits you from receiving this type of communication.

Can I stop communications from a collection company? Yes, if you notify the company in writing you refuse to pay the subject debt or you are requesting they stop communicating with you. (This does not relieve you of the obligation if you owe it.) The collection company can no longer communicate with you concerning this debt except to advise you that their efforts are being terminated and to notify you of other remedies.

What if I fail to dispute the validity of a debt? The failure to dispute the validity of a debt under this act is not an admission of liability in any court.

Your state's attorney general's office and the Federal Trade Commission, Consumer Response Center, Room 130, 600 Pennsylvania Avenue NW, Washington, DC 20580.

The Secrets to Good Credit and Debt Reduction: A Consumer Self Help Guide contains the answers to many other questions about collection agencies. Order your copy today to get those answers.

The author, D.J. Williams, also writes and publishes a free, bimonthly newsletter full of tips, news and other information about consumer credit and money management.
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