There are several laws that govern credit collections, and the first step a lawyer usually takes is to determine whether they are dealing with a commercial debtor or a consumer debtor. Knowing which set of laws applies is obviously crucial to the efficiency and overall success of your collection efforts.
Commercial debt collection involves debt owed by one business to another, such as debts for unpaid products or services ordered from a supplier. Commercial collectors are not covered by the Fair Debt Collection Practices Act, their practices are still subject to other legislation. Consumer debt collection, which is covered by the FDCPA, specializes in collecting debts owed by persons to businesses, such as personal credit card debt, mortgage debt, and so on. Generally speaking, laws that govern commercial collections are more flexible than those that cover consumer collections.
Collection agencies are businesses that attempt to receive a sum from commercial or personal debts owed to another company in exchange for a portion of the sum amount.
Due to the Fair Debt Collection Practices Act, a debt collector must restrict all communication to your representing attorney.
Collection scams are people who claim that you owe them or their business money from an unpaid service they provided for you. To confirm validity, you may request a “validation notice” from the alleged collector to ensure of their legitimacy.
In many cases, a debt settlement agency may claim that they will “negotiate” your sum amount to a lesser value for your benefit. Though, there is no way to assure that a creditor will be willing to accept a lower sum amount.
Debt collectors are not allowed to harass you in any way for an unpaid debt, which may include: threatening, harming, using obscene/profane language, or using a phone to spam/annoy you.
Call An Attorney Now
