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When collecting a debt from you, collectionagencies must adhere to federal and state rules. Fortunately, the federal Fair Debt Collection Practices Act (FDCPA) protects all states. You have rights to help you gain control over your debt collection interactions.
How to Improve Your Credit after Collections Debt Collections FAQ What Is Collections Debt? When you default on a payment, the company you owe may sell your debt to a third-party collectionagency. In other cases, creditors may send you to collections the day after your payment is due.
In 2017, the plaintiff filed a class action lawsuit alleging the defendant was a “collectionagency” that had “filed numerous lawsuits … to collect the consumer debts allegedly owed by New Jersey consumers on defaulted credit accounts at a time when [it] was not properly licensed” under the NJ Licensing Act.
This knowledge can help businesses choose the most appropriate course of action, which may include hiring a debt collectionagency. Consumer Debt Collection: This involves the collection of personal debts owed by individuals, usually to banks or credit card companies.
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