Debt Collection Agencies Bosses
A collection agency is a business that pursues debtors (both individuals and companies) in order to collect money that is owed against their debts. Most of these debt collection services are hired as agents representing the creditor and they collect debts for a fee or even a percentage of the amount owed. While there is no hard and fast rule about when it is time to send a delinquent account to debt collection agencies, the general consensus is the earlier the better. Some agencies will even buy, at a very low price, collection accounts from creditors and then will pursue the debtor for the entire amount owed.
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 primary US Federal law governing debt collection agencies is the Fair Debt Collection Practices Act (FDCPA). This agency will allow consumers to file lawsuits against an agency that violates the act. However, the FTC or even a state Attorney General may also take action against collection agencies for non-compliance. The actions may include ordering payment of damages, issuing fines, restricting their operations or even shutting them down.
More On: Who Governs Debt Collection Agencies?
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