Debt Collection Restrictions: Things That Collection Agencies Are Not Entitled to Do

Debt collection agencies are the lifeboats that businesses require when they are sunk in bad debts. These professional agencies help follow up with debtors, ensuring that businesses can retain their cash flow, and continue their operations seamlessly.

Despite being so helpful, professional debt collection agencies have earned themselves quite a bad reputation in the market! And the reason behind this is because of the aggressive tactics used by some agencies in their attempt at debt recovery.

This ill-reputation was so far-fetched, that a Fair Debt Collection Practices Act (FDCPA) had to be enforced by the Federal Trade Commission (FTC) to establish some clear guidelines for collection agencies and protect the consumers from getting harassed.

Let’s explore this blog till the end to find out what debt collection agencies are forbidden from doing, and stay safe from harassment.

7 Things That Debt Collectors Are Forbidden to Do

1. They Can’t Call You At Inconvenient Hours

Debt collection agencies cannot call you at any time of the day asking for repayments! The FDCPA has clear guidelines on the stipulated hours when agencies are permitted to place their follow-up calls. It’s between 8 A.M to 9 P.M on weekdays (according to the debtors’ local time). If you receive calls from them beyond these hours, you have the right to

2. They Can’t Publicize Your Debt

A debt collection agency in Houston isn’t allowed to publicize your debt! What this means is, they cannot discuss to other people about the debts you owe, other than your spouse, or your attorney. They might contact your employer to get your contact information at most. However, they are forbidden to do that as well!

3. They Can’t Harass You For Debts That You’ve Paid / Don’t Owe

Incorrect documentation and working on inaccurate information are very common in the debt collection industry. That’s the reason why some collection agencies, knowingly or unknowingly, might call you up and try to pursue or harass you for debts that you’ve already paid, or for debts that you don’t owe.

This is a common issue in the debt collection industry, which is also a highly illegal thing to do! So, if you feel you’re being pursued for a similar reason, feel free to file a report against the agency.

4. They Can’t Use Abusive Language While Talking

Making use of aggressive tactics is in the very nature of debt collection services because of high delinquency rates! However, that doesn’t permit them to use abusive language or begin swearing while talking to debtors! If you ever face such a situation, make sure to hang up immediately, and write a formal letter of complaint to the management of the concerned agency.

5. They Can’t Show Up At Your Workplace

A debt collector can contact you in different ways- through calls, texts, or even email. However, what they aren’t entitled to do, is send a representative down to your workplace to collect payments! The FDCPA has strict regulations against such deeds, and such acts can be categorized under ‘publicizing of debts’ for which the collection agency might have to suffer heavy penalties.

6. They Aren’t Allowed To Make Threats

Representatives of the best commercial collection agency can request you to clear off your unpaid debts. They can even come to a negotiation with you to ensure 100% recovery. However, they are not in any way allowed to make threats over calls or messages regarding repayments! These include threatening to put you behind bars or revealing to your employers, and friends about your debt problems.

7. They Can’t Pretend To Work For Government Agencies

When a debt collection agency contacts you, they should be very clear about who they are, and for what they have called. What they cannot do, is pretend to be the representatives of any government agencies, which includes the law enforcement agency as well! Furthermore, they also aren’t permitted to claim that they work for a consumer reporting agency. If you happen to face a similar situation, make sure to file a complaint for misrepresentation.

The Final Verdict

Professional collection agencies have earned quite a notorious name in the debt collection industry because of the unfair practices that certain agencies employ for repayment. So, you must be aware of the regulations set by the FDCPA to make sure that you can protect your rights, and keep yourself safe from such abusive practices.