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When a debtor owes a creditor money and the creditor is seeking assistance collecting the amount owed, the creditor can either use a collection law firm or a collection agency. Both can send a demand letter and call the debtor to request the outstanding amount owed. Law firms and collection agencies serve the same purpose initially.
The right debt collection agency can act as your own personal accounts receivable department tasked with tracing down delinquent accounts, contacting debtors, negotiating payments, filing for judgments, and collecting payments. However, there are certain lines that a reputable collection agency should not cross.
Discuss your debt with anyone but you or your spouse. What can debtorcollectors do to you under the FDCPA: Contact other people to find out where you live, your current telephone number, or where you work, but they can’t contact anyone more than once or tell anyone you owe a debt. Repeatedly call you.
Discuss How an Experienced DebtCollector Can Increase a Business’s Chances of Recovering Unpaid Debts Having an experienced debtcollector on your team can drastically increase your chances of recovering unpaid debts. Experienced collectors are well-versed with these laws, ensuring compliance at all times.
The Fair Debt Collection Practices Act is a federal law that protects consumers against certain unfair collection practices. It applies to only external or third-partydebtcollectors and only for personal debts. It does not come into play for creditors collecting their own debts.
Debtcollectors are notorious for harassing consumers when they seek repayment, calling excessively and threatening to take actions that may not be legal. What you may not know is that you are protected by the Fair Debt Collection Practices Act (FDCPA), a law designed to keep third-partydebtcollectors in check when they contact you.
Avoiding Communication : If a debtor consistently ignores your calls, letters, or emails, it might indicate they have no intention of paying. A debt collection agency can use its expertise to break this communication barrier. They can use proven strategies to encourage debtors to pay their dues promptly.
Fact check : No, debt isn’t ‘invalidated’ if collection agency doesn’t respond to letter in 30 days Jiménez said it’s true that a debtcollector could be fined up to $1,000 if they continue to contact a debtor after receiving a cease-and-desist letter.
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