Sunday, December 12, 2004

Collection Agency Legal Rights

Collection agencies have a number of legal rights to use during the collection of debts. The rules and regulations can vary from state to state, but they must comply with the Fair Debt Collection Practices Act which governs their collection activities.

Calling Hours

    Collection agencies can call you between the hours of 8:00 a.m. and 9:00 p.m. in your local time zone. Debt collectors calling from different time zones need to be aware of these calling times.

Third Party Contact

    Debt collectors can call a third party not associated with a debt but only for the purpose of receiving contact information about the debtor. They can only call once unless they believe the third party has new contact information about the debtor.

Employment Guidelines

    Collection agencies can call you at your place of employment, to collect a past due debt, unless you tell them not to. If your place of employment does not allow phone calls, the collection agency should comply.

Written Correspondence

    Collection agencies may contact you with written correspondence to notify of the outstanding balance owed and the creditor that they represent.

Postdated Checks

    Collection agencies can accept checks postdated five days or more if they notify the consumer in writing of their intention to deposit the check. Notification should be sent between three and ten business days before the deposit is made.

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