3 Debt Collection Practices Prohibited By Law

In today's society, many people are subjected to debt collection practices on a daily basis. When times are tough, many people simply do not have the money to pay their bills. When this is the case, companies turn over their past due accounts to a collection agency. If you ever have one of your accounts turned over to a collection agency, you can expect to receive several phone calls about it. As a result of receiving multiple calls, there is a chance that a collection agent will violate your rights. If this is the case, they could face serious consequences from the government. Here are a debt collection practices that are prohibited by law. 

1. Harassment

Harassing their clients is something that a debt collection agency can not do. Many things can be considered harassment and they are all prohibited by law. If an agent threatens you with violence or harm, that is considered harassment. If they use obscene language during their conversations with you, they can also get in trouble. If someone is yelling or cursing at you over the phone, tell them that you do not appreciate being spoken to in that manner. If they persist, simply hang up the phone. Another common use of harassment by collection agents is when they repeatedly call you on the phone. Calling you once a day or every other day is most likely not considered harassment. However, some collection agents just keep calling and calling repeatedly throughout the day. If this is the case, they need to be reported to the authorities. 

2. Lying

Debt collectors have to be truthful in their dealings with you. If they make any false statements or representations, they are in violation of the law and can get in serious trouble. One common example is when they tell you that they are someone else besides a collection agency. If they say that they are a lawyer or from a law office, this is against the law. If they tell you that you have committed a crime or face jail time in the near future, this is also a lie. They can not tell you that you owe a different amount compared to what you actually owe. They may also tell you that they can seize your assets or garnish your wages. Anything along these lines is a direct violation to what they can do. 

3. Unfair Practices

As part of the debt collection procedure, they can not engage in any unfair practices. For example, they can not charge you interest or any fees for collecting the debt. They can not cash a post-dated check or anything along those lines. If you feel that you have been treated unfair by the debt collector, you need to alert the proper authorities that your rights have been violated. 


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