A debt collection company (Dutch: incassobureau), also known as a debt collection company, is a company that collects payments on behalf of another company. Credit card debt is the most common reason people and businesses call a debt collection agency (Dutch: incassobureau inschakelen), but other types of debt such as medical bills, utility bills, and student loans can also be collected. .
When a business decides to use a collection agency, it usually gives the collection agency a list of customers who owe money. Debt collectors contact these customers to attempt to collect the debt. If you fail to pay your debts within a certain period of time, collection agencies may report your debts to credit bureaus, which could adversely affect your creditworthiness.
Method 1: Call
by phone There are several methods that collection agencies use to collect debts. The most common method is “telephone contact”. In this method, the collection agency calls the customer and attempts to collect the debt over the phone. If the customer does not answer the phone or refuses to pay the debt, the collection agency can send a letter demanding payment of the debt. If the customer still does not pay the invoice, the collection agency can take legal action against the customer.
Method 2: Doorstep Collection
Another method used by collectors is called “doorstep collection.” In this method, a representative from the collection agency visits the customer’s home or business and attempts to collect the debt. If the customer does not answer the door or refuses to pay the debt, the agent may leave a notice at the door to contact the collector. can take legal action.
Collection Agency Regulations
Collection Agencies Subject to State and Federal Laws
These laws protect consumers from unfair practices by collection agencies. For example, under federal law, a collection agency cannot contact a consumer more than once a day without the consumer’s permission. Additionally, under federal law, debt collection agencies cannot use threats or force to try to collect debts.
These Are Your Rights
If you are contacted by a collector, you have rights under both state and federal law. Do not provide personally identifiable information to a collection agency over the phone or in person unless you are absolutely sure you want to do so. In addition, do not agree to pay the collection agency directly unless you are sure you can afford it and want to pay it. Finally, if you believe that a collection agency has violated your rights under state or federal law, you can file a complaint with the District Attorney’s Office or the Federal Trade Commission (FTC).