What is A Debt Collection Agency?

A debt collection agency is any person or business which regularly collects debts which are owed by individuals or businesses. Any person or agency who is collecting a debt which has been referred to them or purchased from the original creditor meet the definition of a debt collector or collection agency. Some debt collection agencies collect debts for a fee or a percentage of the total amount owed or purchase debts from creditors for a fraction of the face amount of the debt and pursue the debtor for the full balance.

Debt collection agencies are known to engage in threatening behavior or harassment of debtors while attempting to collect a debt. However, collection agencies are governed by Federal and state laws that prohibit certain abusive practices. The Fair Debt Collection Practices Act (FDCPA), 15 USC 1692, is a federal law which limits the activities of debt collectors to prevent abusive practices. It is designed to protect consumers from abusive and harassing practices by imposing penalties on collection agencies which violate the law. Failure to adhere to such laws may result in lawsuits that can result not only in waiver of the debt but also in large fines that must be paid to the offended party.

"A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt".

What Can't a Debt Collection Agency Do?

The following are some prohibited debt collection practices:

Communication in connection with debt collection:-

• A debt collector or debt collection agency may not communicate with a consumer in connection with the collection of any debt at any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer. Debt collection agency can't call between the hours of 9 p.m. and 8 a.m. 
• A debt collector or debt collection agency may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.

Harassment or abuse

• A debt collector or debt collection agency may not use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.
• A debt collector or debt collection agency may not use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.
• A debt collector or debt collection agency  may not cause a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.

Know your rights. Visit THE FAIR DEBT COLLECTION PRACTICES ACT for more information