If you’re considering leaving a credit card or hospital bill unpaid, be aware of the fact that doing so for long enough will almost certainly result in your creditor remanding the full balance you owe to a collection agency for debt recovery.
A collection agency is any organization whose sole purpose is to collect overdue debts. You can also start collecting your debts or credits with the help of debt collection and accounts receivable software.
The Fair debt collection agencies practices (FDCPA) is a crucial statute in this respect. the law addresses business collection agencies activities targeted at collecting consumer bad debts. So if your financial troubles was for business purposes, then your protections afforded do not connect with your particular circumstance.
Naturally, you should talk with an lawyer prior to making your final decision. Most claims have passed lawful restrictions which implement lots of the protections of the federal government law and also have removed a step further in building a consumer security organization to enforce those protection under the law.
Under the national and state business collection agencies statutes you have privileges against harassing, obscene and intimidating calls as well as written marketing communications which supply the impression of from the government company or law firm. You can’t be contacted at your workplace or workplace once you send a written notice to the business never to contact you there. You can even demand confirmation of your debt in writing and everything collection activities must stop for another thirty days or when you obtain such verification.
A key provision of the federal law which has not received much discussion is the mandate that you can notify the collection agency in writing that you are not going to pay the debt and for the company not to contact you anymore and the collection agency has to comply. Be aware though that this will not prevent a lawsuit being filed against you nor will it prevent the agency from selling your debt to another company which you will have to notify of your refusal in writing.