Collection Agency Laws - Understanding these laws will help you deal with collection agenciesCollection agency laws prohibits abusive and deceptive behavior from debt collectors, here are a few prohibited behaviors that are outlined in the law that governs debt/bill collectors:
Contacting you repeatedly after you have instructed them in writing to stop.
Threatening arrest or legal action- There is no law that says you can be arrested for an unpaid debt, and debt collectors are not to threaten you with legal actions which they cannot take against you by law. (continued below) Hours of phone contact- Debt collects are restricted from contacting you outside the hours of 8.00am to 9.00pm local time.
Contacting you at your place of employment- Collectors are prohibited from contacting you at your place of employment once you have notified them in writing that this kind of behavior is unacceptable by your employer.
Seeking unjustified amounts- Third party collection agencies are prohibited from seeking to collect amounts of money not included in an applicable contract that you have signed with them.
Abusive or Profane Language- Collectors are prohibited from using this type of language in the course of communications in reference to consumer debt.
Having your telephone ring continuously and repeatedly- Collectors are prohibited from using the telephone as a means to abuse or as a means to annoy or harass you.
Contact with third parties- Debt collectors are prohibited from discussing the nature of debts with third parties (other than a consumers spouse or attorney) and are not permitted to do so under the law.
Contacting you after you have requested a validation of the debt- Debt collectors cannot contact you once you have sent them a written notice saying that you are disputing the debt which they say you owe. At that point they must investigate the debt and mail you a copy of the proof of validation or the original creditors name and address and cannot contact you again BEFORE sending this information.
Misrepresentation or Deceit- Debt collectors are prohibited from misrepresenting themselves as law enforcement officers or an attorney at law in the process of trying to collect debt.
Contacting you after you have made aware to the debt collector that you are being represented by an attorney.
These are some of the specific details of the collection agency laws which they must abide by.
The Fair Debt Collection Practices Act also provides for statutory damages of up to $1000 plus reasonable attorney fees if a debt collector has been proven to have violated the Collection agency laws.
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