Question

what can debt collectors can and cannot do?

What are some laws that you did not know about with Collections? Explain the different ways that people can be contacted for collections.

Answer 1

Answer 1:

Debt collectors can:

1. DC can send emails, text, letter to the collect debt
2. DC can reach your home or office to collect the debt
3. DC can communicate with someone who knows the debtor for collecting information about the debtor. DC has to give inform the informant that he is collecting information about the debtor. if requested by the informant, the DC has to reveal the identity of the party that the DC is working for.
4. DC can tell the debtor the amount to be paid.
5. DC can take legal action against the debtor
6. DC can provide remedies to the debtor for settling the debts

Debt collectors (DC) cannot:

1. DC cannot contact you during odd hours ( i.e. before 8:00 AM and after 9:00 PM)
2. DC cannot use abusive language, and deceptive means to collect the debt.
3. DC cannot harm the debtor or his property.
4. DC cannot repeatedly call the debtor after the debtor has refused to pay his debt. This amounts to harassment.
5. DC cannot inform the informant of any details about the debt the debtor owes.
6. DC cannot reveal to the informant that he is a debt collector in any form.
7. Once the DC is aware that the debtor is represented by an attorney, he cannot contact anyone else ( provided the DC is aware of it).
8. DC cannot approach the debtor at his workplace
9. DC cannot reveal the information about the debt the debtor owes to anyone except the debtor and his attorney.
10. If the debtor informs the DC in writing that he doesn't want to pay the debt, the DC cannot contact the debtor
11. DC cannot collect the debt owed by fooling the debtor.
    • Example
      1. posing as an attorney
      2. making the debtor pay some amount for some other reason in order to get the debt payment
      3. Claiming the debtor has committed a crime
      4. False claims that the debtor is affiliated with the government
      5. Failure of payment can lead to punishment or confiscation of property.

Answer: 2

Laws related to the collection - Fair debt collection practices act 15 U.S.C

Answer: 3

The ways in which people can be contacted for collections are:-

1. The debt collector can contact the debtor between 8:00 AM to 9:00 PM.
2. Within 5 days, the DC has to send a written notice
3. This notice will contain
   1. Amount to be paid
   2. Name of the creditor to whom the payment is to be done
   3. Statement that if the debtor aggress with the claims of the DC ( the debtor is given a time of 30 days
4. The debt collector can trace you through
   1. Phone number
   2. Address
   3. Through your bank details
   4. Reverse directory - tracing your address through your phone number.
   5. Motor vehicle department database.
   6. Voter registration record.
   7. Credit Bureau
   8. Internet research
   9. Data aggregators