WHAT YOU HAVE TO KNOW BEFORE ATTEMPTING TO COLLECT DEBT:

Federal Debt Collection Law Industry Guidelines

Have you ever been chased to pay debt?

Have you ever chased someone else to pay debt to you?

Chances are you have belonged to both camps at some point in your life.

Do you know that you are legally protected in both cases & you DO HAVE LEGAL RIGHTS?

Are you aware that ALL debt collectors have to follow strict Federal Debt Collections Procedures and respect debtor’s legal right?

Fair Collection Practices Act gives defined guidelines to businesses on how to lawfully and ethically collect debt.  Creditors are also protected legally in their debt collecting.

It is very important to know your legal rights and what you can do in your situation.

To find out more about your legal rights please visit the following sites for more info.

For America Go To: http://www.fdic.gov/regulations/laws/rules/6500-1300.html

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

For Canada Go To: http://www.collection-calls.ca/articles/regulation-of-debt-collectors.html

For Australia Go To: http://www.accc.gov.au/content/index.phtml/itemId/3653

For UK Go To: http://www.ehow.co.uk/about_6720758_fair-debt-collection-practices-act.html

When looking to debt collect for your business, you should make sure you follow these (and other) guidelines:

  • Stop collection activities immediately upon receiving a written request from a consumer asking for verification of a debt.
  • Communicate with consumers clearly, honestly and respectfully. Abusive, demeaning, condescending, or any threatening and harassing language is not allowed, as it violates both federal and state debt collections law.
  • Verify the debt by conducting a reasonable investigation, clearly identify the person obligated to pay the debt, and verify the accuracy of the information provided by the original creditor to the debt collector.
  • Federal debt collection law forbids debt collectors  from threatening legal action on debts where the statute of limitations has expired. Consumers should know their state’s laws on debts and statutes of limitations, and are fully within their legal rights to challenge these threats.
  • Debt collectors must make reasonable efforts to safeguard the integrity, privacy and availability of consumer information.
  • A debt collector should not engage in conduct that is unprofessional, unethical, illegal, deceitful or dishonest.

Get familiar with more federal debt collection guidelines covered by the Fair Debt Collection Protection Act, or FDCPA.

Being informed on your legal rights PAYS!