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Collection Agencies and the Law

Apr 24, 2008
Collectors have to study and pass tests with their companies in many cases before they become collectors. They know the laws that they legally must adhere to as collectors and they can actually be fined for breaking the law. But they don't always follow it. Some companies and individual collectors obey the law and some don't.

By law they are required to supply you with all information in regards to your original debt. They have to supply you with the information within 30 days of your request for it. The best way to the make your request is to send a certified return receipt letter stating that you want this information. If they can't supply it then they have to stop reporting to the credit bureaus concerning your debt and lack of payment. They also have to leave you alone for a while.

If they can't supply documentation of your debt that show how much you owe them, then you are usually released from this debt, but there are too many loop holes to use this part of the law it as a means of debt relief. The credit bureaus have to go by this same law and if they can't supply you with proof then it comes off of your report.

In the state of Texas they are not allowed to call between 8pm and 8am, and if they do you can get them for harassment charges, but relief from their calls won't last for long. They can start to calling again after a period of time. The calls have to be made according to your time zone, not their time zone.

If the collector calls repeatedly and hangs up or just calls repeatedly leaving messages you can file a police report about it, if you know the number the collector is calling from. This report can be against the company and the individual collector.

Your case is assigned to a certain collector, but if he isn't getting the desired result, his manager may call you to try and collect the debt. They may even play a game of good cop and bad cop with you in their effort to get you to pay.

Some of the other threats a collector may use, which are illegal are: telling you that you have committed a crime to disgrace you or using deceptive means to collect the debt.

You know what a threat is and you have the right to protect yourself under the law from threats and other types of harassment calls. When someone says they will freeze your accounts until you pay the debt, that's a threat. They can't freeze your account freeze your bank account. This scare tactic is illegal.

If a collector sys he will freeze your bank account or other asset, they are lying because they don't have the authority to do it. You can have a lawyer handle this threat for you and the court will fine the collection agency or collector. The collection agency will have to pay the lawyer's fees too.
About the Author
Tristan Andrews is a freelance author who writes articles about Collection Agencies and Commercial Collections.
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