Bill Collection

Bill collection agencies collect debts in behalf of the creditors. They are paid a percentage of the debts they were able to collect. Persistent and demanding are usually the adjectives associated with collection agencies. They are a total pain in the neck especially to the debtor. More often too, they are more unforgiving and demanding than the businessmen who hire them.

Collection agencies appear to possess such great amount of power. But don’t be fooled, they do not have any more authority to collect debts than any other businesses. Their power only comes from the creditor itself. It is then good to understand that the creditor and the debtor have the final say on how debt can be handled.

This article hopes to enlighten you what collection agencies CAN and CANNOT do. And if they cross the line, you can stop them at their tracks by filing the appropriate legal action.

Collection agencies are given the authority to contact you at your home or at work to try to collect the debt. Nonetheless, they are only allowed to phone you between the hours of 8 am and 9 pm.

Collection agencies do not have the right to call you and your family to the point that it can be considered harassment. They also cannot use obscene or profane languages when talking to you.

Collection agencies cannot contact your friends, neighbors or employer unless it is for information verification (in terms of the employer) and just to ask for your address or contact numbers. Moreover, collection agencies cannot continue to call you at work when you already told them not to.

Collection agencies are authorized to discuss only the details of your debts and that of the creditor.

You can also propose other arrangements to discuss the detail of your debt, but one is expected to keep those arrangements. The agencies cannot supply you with invalid, false and misleading information. They cannot claim to be a lawyer or part of the legal department, if they are really not.

The collection agencies should ask for authorization from the creditor before they can take you to court. The collection agencies are also tasked to give you a statement of account. This will then show the list of your debts, the amounts received and paid out, and the remaining balance. The collection agencies are expected to give this to your every six months.

If you think that collection agencies are violating your rights and doing something illegal under the Fair Debt Collection Practices Act or FDCPA, you can contact the proper authorities to report your case.