TABLE OF CONTENTS
Everyone in the collections industry has heard of the Fair Debt Collection Practices Act or FDCPA for short. However, many collections agency owners, operators, and agents are unfamiliar with exactly how the FDCPA directly affects their business. This article intends to help provide clarity to a few of the critical points. By definition, the Fair Debt Collection Practices Act “limits the behavior and actions of third-party debt collectors who are attempting to collect debts on behalf of another person or entity.”
The law restricts the methods collections agencies can use when contacting debtors. This includes the number of times debtors can be contacted and the time of day that contact can be made. It is essential to abide by the FDCPA rules and regulations. Both the agency and the individual collection agent may be liable if violations occur. The good news is that breaches are easily avoidable when you are aware of the Act.
When Can Debt Collectors Contact Debtors Under FDCPA Regulations?
Debt collection agencies are not allowed to contact debtors at inconvenient times. This means that calls cannot be made before 8 a.m. or after 9 p.m. The only exception to the rule is when the collection agent and debtor have made arrangements for a follow-up call that does not fall within these hours. For example, if the debtor agrees to a phone call at 7 a.m. or 10 p.m., the collection agent can call at that time. It is important to notate the arrangement before making the call. You will need it on record if the debtor decides to make a false claim about an FDCPA violation.
How Can Debt Collectors Contact Debtors Under FDCPA Regulations?
Collection agents are allowed to reach debtors at their homes or places of employment. However, if a debtor informs the agent to stop calling them at work, the collector is no longer allowed to call that number. The debtor can notify the agent in writing or verbally. Collection agents cannot contact the debtor’s associates, neighbors, or family members if they do not have the debtor’s contact information. The agent cannot reveal any information about the debt unless they are speaking directly with the debtor. This includes the fact that he or she is calling from a collections agency.
What Can Debt Collectors Do Under FDCPA Regulations?
Collection agents are allowed to inform debtors about the debt that is owed. They are also entitled to request payment for the debt that is owed. In many cases, the agent can also work out a payment plan or even a settlement amount to pay the bill in one lump sum. It must be noted the FDCPA was created to protect debtors from being harassed by collection agencies. While some debtors are under the false impression that they are being harassed when the collection agent is merely performing their job under the law’s letter, there are specific criteria to be aware of. For example, collection agents cannot threaten bodily harm or arrest. They cannot threaten to sue debtors unless they intend to do so.
Payment Savvy specializes in providing the collections industry with seamlessly integrated merchant accounts. Please contact Payment Savvy today to review your options, apply for a high-risk merchant account, and obtain answers to your questions. We look forward to hearing from you and working with your company.
If you have enjoyed reading this article and found it informative, please share it with all of your contacts on social media. Payment Savvy greatly appreciates your efforts in this manner. Please stay tuned for more interesting articles.
PAYMENT SOLUTIONS
FEATURED INDUSTRIES
RECENT POSTS:
What Industries Are Recession Proof?
While it is by no means a pleasurable experience, the simple truth of the matter is that recessions are a part of life and something we should accept as an occasional occurrence. We are going to face them once in a while – there is no avoiding that fact. Depending on your perspective (and at…
BIN Checker: Understanding Bank Identification Numbers
What Are BINs? A Bank Identification Number (BIN) is the first four or six numbers found on any debit or credit card. Essentially, this set of digits specifies the financial institution that issued a payment card. Every BIN number can be checked to prevent fraud and ensure the protection of both merchants and consumers when…
Understanding FFL: Types, Application, and Licensing Process
The Federal Firearms License (FFL) is a cornerstone for businesses in the flourishing firearms industry. In 2022 alone, a staggering 16.4 million firearms were sold across the United States, underscoring the industry’s robust growth. Furthermore, the U.S. firearm industry’s contribution to the economy is substantial, injecting 28 billion dollars into the economy. This booming industry…