Credit Collection Issues

Credit collection issues usually have to do with the conduct of debt collectors. Their conduct -- or misconduct -- affects consumers whose credit accounts are no longer managed by the original creditor. An original lender may hire a debt collection agency to attempt to recover a debt, or the lender may write off the debt and sell it to a debt buyer.The Fair Debt Collection Practices Act (FDCPA) provides credit collection guidelines for debt collectors and debt buyers, but it's important to note that these guidelines don't apply to the original creditor.

Contact

One credit collection issue that affects consumers involves the methods a collector may employ to collect the debt. FDCPA guidelines allow the collector to contact consumers by telephone, postal mail, e-mail and fax. Collectors may also contact the consumer's family members, neighbors and employers to ask for contact information. FDCPA guidelines prohibit the collector from discussing the reason for the call or the particulars of the account with any third party, with the exception of the account holder's attorney. FDCPA guidelines also demand that collection calls be made between the hours of 8 a.m. and 9 p.m. If an employer or an account holder requests orally, or in writing, that the collector stop contacting the workplace, the collector must comply.

Harassment

The FDCPA protects the consumer from collector harassment. For example, the collector may threaten to bring criminal charges against the account holder, threaten to file a lawsuit on an account that's beyond the statute of limitations, or add fees or charges to the account that aren't authorized in the contract. Other types of harassment include multiple daily phone calls, contacting third parties when the collector already has correct contact information, demands for immediate payment, and continuing to contact the account holder after receiving a written request to stop. Consumers faced with these collection issues may file a lawsuit against the collector.

Disputes

Some collectors try to make an account holder pay a debt that isn't his, or a debt that's past the legal timeframe for collection. Account holders have the right to dispute credit account collection in writing with the collection agency. The account holder must send a written dispute to the collection agency within 30 days of receiving the initial written communication from the collector. It's not necessary for the account holder to specify a reason for disputing the account, but he must request validation, which may include a copy of the original contract. Collectors must cease all collection activities on the disputed account unless they can provide validation within 30 days.

Reporting

Credit reporting issues involving collection accounts can seriously impact a consumer's credit score. One delinquent account may be reported several times on a credit report; first by the original creditor, then by a debt collector, and then again by a debt buyer. The amounts on each account can vary based on accumulated fees, and the account designation may also vary from charge-off to collection. Negative account listings must be extinguished from a consumer's credit file after seven years of the original delinquency, according to the FDCPA.