Feb
22
When a company has delinquent accounts in their accounts receivable, it costs them more money for every day it goes uncollected. This is one reason why they hire debt collection agencies to pursue the debtors for the money due. Sometimes a collection agency will purchase collection accounts from companies for a fraction of what they are worth and then pursue the debtor for the full balance owed. If there is one thing that most agencies and collectors agree on it is the fact that you cannot put off collections on an account. The sooner you start the better the chances of collecting.
In most countries, as well as the United States, there are certain laws that govern collection agencies and prohibit certain actions and behaviors that may be abusive in nature. It governs on how and when collection agency calls are delivered. If they fail to comply with these laws, then it can result in lawsuits and possibly government regulatory actions. While the primary federal regulator of agency collection is The Federal Trade Commission (FTC), there are many states that have their own requirements that must be adhered to in order for the agency to pursue collections in their state.
The Fair Dept Collections Practices Act is the primary federal law that governs the debt collection services companies and allows consumers to file private lawsuits against any agency collection business that violates the act and they offer recommendations on how to deal with a company that is in non-compliant. However, The Federal Trade Commission and a state Attorney General may also take action against debt collection agencies that are in violation. These actions may include imposing fines, restricting their activities and shutting them down if necessary.
In addition to federal and state laws, most of the United States debt collection services belong to a group called ACA International (Association of Credit and Collection Professionals) and agree to abide by their code of ethics as a condition to membership. Basically, ACA’s standards require the members to treat consumers with respect and dignity; they also appoint an officer with sufficient authority to handle consumer complaints.
Although the Federal Trade Commission is the primary regulator, you can still file your complaint on a more local level by filing through the ACA’s consumer complaint resolution program, providing that the debt collection agencies are members of the ACA. Many times agencies will respond quickly to an inquiry being made through ACA, as their membership with ACA is on the line when there is a consumer complaint. However, if you feel that the wrong decision was made, or that no resolution occurred, then you should most definitely go ahead and file your grievance again, this time going through the Federal Trade Commission, as well as the Attorney General in your state.
