How to Collect Debts in the United States

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Interesting Facts About Debt Collection in the U.S.A

Did you know that there is a federal law governing the practices of debt collectors? The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive, unfair, and deceptive practices to collect debts. It also requires creditors or their agents to send written notice within five days of the first collection phone call, stating the amount owed and what will happen if it isn’t paid. If you have been contacted by a debt collector, then it is important that you understand your rights under this act.

All debt collectors must send you a written notice of their intent to collect within five days after they first contact you. If the collector decides to take legal action against you, then it is required that they notify your last known address in writing at least 20 days before filing suit with a court. The FDCPA also requires that any communication from the debt collector be accurate and not misleading in order to protect consumers from unfair practices.

Debt Collection

The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive, unfair, and deceptive practices to collect debts. It also requires creditors or their agents to send written notice within five days of the first collection phone call, stating the amount owed and what will happen if it isn’t paid within specified time. If the debt isn’t paid, the creditor or collector must send a second notice to advise of their intention to take legal action.

The FDCPA also prohibits debt collectors from calling before “reasonable hours” and trying to collect any amount greater than what is owed. The Act protects both people who are unable (or unwilling) to pay as well as those who have paid all that they owe on an account but continue receiving demands for payment.

If the collector decides to take legal action against you, then it is required that they notify your last known address in writing at least 20 days before filing suit with a court. The FDCPA also requires that any communication from the debt collector be accurate and not misleading.