Collection agencies that work for a creditor or have purchased the debt from a creditor have the right to collect. The collection agencies act regulates how the collector can collect and when the collector may collect. Violating the rules of this act could lead to a civil lawsuit against the creditor and possibly eliminate the debt of the debtor.
Notice Of Debt
A debt collector must notify a debtor within 30 days of the debt. Other important information that should be included with the letter is the name of the original creditor if applicable, the amount of the debt plus any reasonable interest and fees that have been assessed, the right to dispute the debt and contact information where payment may be sent or where the collector may be contacted at. This notice must legally be submitted to the debtor in order to begin collecting on a debt.
Time Limitations
A collection agency has limitations of when and where the agency may call the debtor according to the collection agencies act. A collection agency may call a debtor between 8 a.m. and 9 p.m. in the debtor's time zone. Collectors may collect on the debt any day of the week, including holidays. If a collector contacts a debtor at his or her place of employment, the collector must cease communications if the debtor informs the creditor personal calls to the job are not permitted.
Threatening Debtors
Collection agencies are not allowed to threaten physical harm to the debtor at any time. The collector is also prohibited from pretending to be an attorney or law enforcement agency. Collectors can not legally seize assets or property of the debtor or any wages without the approval of the courts. Therefore, a collector may not state to a debtor that he has this authority. Collection agencies may not publicly announce the debtor's debt to family, friend, co-workers or employees. Anything that will get the debtor fired from his or her job is illegal.
Confidentiality
A collection agency has the right to collect from a debtor via telephone or through written correspondence as a part of the collection agencies act. The collector from the collection agency is prohibited from discussing the debt with anyone other than the debtor, her spouse or authorized account holder. The collector may leave a voice message or message with someone in the home of the debtor, but the collector may not discuss the reason for the call, only a contact and reference number.
Credit Bureaus
The collection agencies act permits the collection agency to share any debt information with the credit bureaus. The amount of the debt may be listed, regardless of whether the debt has been paid. The debt is not removed from the credit report, but if the debt is paid, the collection agency must mark the debt as paid. Collection agencies have the right to request a debtor's credit report in order to find current employment and financial information, as well as up to date contact information for the debtor.
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