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Debt Collection Malpractice
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Author: Steve Austin
Topic: Law
Viewed: 36 time(s)
[ Not Rated Yet ]
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Due to the apathetic nature of debtors and the persistent nature
of creditors, there have been serious blow-ups that have
happened during the many years of the Debt Collection industry's
existence. It could have been as minor as verbal disagreements.
But, it could have also been as grave as lawsuits, threats, or
even actual acts of physical harm. This is why the Fair Debt
Collection Practices Act was established in the United States of
America. The law is meant to prohibit abusive practices by debt
collectors. And these practices can be summarized into three. 1)
False Statements and Actions Some collectors are good actors,
while some are better strategists. But debtors should always be
cautious because collectors are usually good with words and
could sense what the average debtor fears, since they have
already interacted with a lot of them. Forcing a debtor to
divulge information or pay by means of misleading statements and
actions is never acceptable to the law. Among the common
misleading statements and actions that collectors could make
are: -Falsely accuse the debtor of committing a crime -Threaten
the debtor that he/she will get arrested -Pretend to be people
who they are not (E.g. Government personnel, Lawyers) -Imply
that legal documents have already been sent or are on the way
even if these aren't -Alter the amount of the debt -Use of
falsified documents, especially those of legalities 2) Unfair
Practices The most unethical of collectors sometimes charge a
debtor an amount that is separate from his/her actual debt. This
shouldn't be the case unless there is really a provision by the
law. Collectors can also mislead debtors into paying for collect
calls and telegrams they use. Baseless legal threats are welcome
additions in this category as well. 3) Harassment This is the
worst form of abuse that collectors could commit because the
acts under this category can cause more serious physical,
emotional, and psychological effects on a person. Some of the
acts are: -Use threats of physical harm or violence -Use of
profane language -Public humiliation of debtors with the use of
print and broadcast media Make sure any collection agency you
select for your business is not violating any collection laws.
About the author:
Steve Austin is a regular contributor to Let No Debt Remain
Outstanding (
href="http://www.let-no-debt-remain-outstanding.com/">http://www.
let-no-debt-remain-outstanding.com/), a website with
articles on choosing a
href="http://www.let-no-debt-remain-outstanding.com/">
collection agency, along with recommended the best
collection agencies.
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