The name of debt collection agencies comes to mind when your debt becomes default. Keeping pace with the record number of people defaulting on bills due to the economic downturn, debt collection activity is on the rise Portfolio recovery associates.
Your inability to pay past credit card balances or gym membership fees become defaulted then turned over to a debt collection companies.
There are many collection companies to mention such as- Takhar group, Portfolio Recovery Associates, NCO Financial, GCS, Allied Interstate, among many others. They use some techniques to collect default debt. Some are good and some are bad.
Unfortunately, some debt collection companies use abusive, harassing, or otherwise illegal means to collect money. The most popular weapon to collectors or companies is mobile phone-a frequently used device to communicate. They use telephonic harassment calling repeatedly by phone at unusual time.
Congress enacted the Fair Debt Collection Practices Act (FDCPA) not only for benefiting consumers but also for eliminating abusive debt collection practices by debt collectors as well as collection companies. Besides debtors, many people are victims of abusive debt collection practices.
For your convenience some common violation of FDCPA is given below:
1. If they use other companies dress, name and badge to represent as attorney of the state.
2. Miss representation about the money you owed and ask for compensation in lieu of collection.
3. Any kind of threat regarding seizing your account and property in case of nonpayment of debt.
4. Telling or implying to you that documents are not legal and require no verification or agreement from your side
5. If you receive repeated phone calls before 8am and after 12pm from a debt collector or you believe to be a debt collector.
6. If debt collector send you a card containing your debt and informed third parties, friends or called at your office about the debt.
7. Use of any false representation or deceptive means to collect a debt from you.
Here some liabilities of violation of FDCPA are given below:
1. Debt collector’s liability arises for violation of act.
2. You can get up to $1000 from debt collectors.
3. If you sue against the collectors or companies and win then the collection company must pay you reasonable attorney’s fees.