What are collection laws?
Collections laws govern collection practices, like the Federal Trade Commission Act (FTCA) and the Fair Debt Collection Practices Act. Because of these laws, creditors are prohibited from engaging in corrupt, misleading or vicious practices when they are collecting debt.
A few actions that violate these laws:
- Frequent and repeated phone calls
- Calling too early (before 8 a.m.) or to late (after 9 p.m.)
- Use of intimidation like violence or harsh language
- Pretending to be someone else i.e. or an example a law enforcement officer
- Sending documents that mirror court summons (cannot look like they are issues or approved by a government agency or an attorney)
- Demanding collection fees, attorney fees, court costs or any other expenses unless previously agreed upon with your creditor
- Providing your information with permission unless it is to a credit reporting agency, bank or other creditors
With laws in place prohibiting these actions, you often have grounds to sue a creditor or collections agency if they violate any of these laws. If a creditor or collection agency violates such laws, you could sue for causes of action, like libel or harassment.
Being badgered by creditors can leave you feeling overwhelmed, powerless and nervous. At Mathewson Law P.C. we will help you resolve your issues with your creditors or collection agencies so you feel back in control and taken-care-of when dealing with you finances.