People who have defaulted on certain types of debt risk having their driver's or professional licenses revoked. However, a government-issued license can only be revoked by its issuing agency or a court of law, not a third-party debt collector.
Collection Agency Power
Collection agencies can make reasonable efforts to collect a debt from you, including calling you, sending you letters, and even suing you in court. However, a collection agency cannot take away a professional or diver's license on its own authority.
Professional Licenses
Professional regulatory boards, courts, as well as state driver's license agencies, can suspend a debtor's driver's or professional license if she has defaulted on certain types of debt, such as student loans, child support, or traffic fines. For example, if someone has a lot of unpaid traffic tickets, their driver's license may be suspended. Similarly, if a lawyer hasn't paid his child support, his license to practice may be suspended.
Deceptive Collections' Tactics
The federal Fair Debt Collections Practices Act (FDCPA) makes it illegal for a collection agency to make empty threats. If a collection agency threatens to take your driver's or professional license away, it has violated the law.
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