Debt collection is pursued repayments of unpaid debts by people or companies. An agency which specializes in debt collection also known as debt collection agency or debt collection company is also called as debt collector or collection agency. They collect debts for customers who refuse to pay for goods bought or services rendered. It was in 1887, when a bill collector made use of the practices stated in The Americans With Disabilities Act (ADA) to force the individual to pay for goods bought or services rendered. These practices are regarded as a violation of the individual’s rights under the ADA. Do you want to learn more? Visit First Capitol Collections
There are several laws that protect the rights of the consumer and impose limitations on the behavior of debt collectors. Among them is the Fair Debt Collection Practices Act (FDCPA), the Fair Credit Billing Act (FCBA), and the Truth in Lending Act (TILA). FDCPA outlines the procedures to be followed by debt collectors and includes detailed guidelines like what the consumer should do if he is not receiving payments on an item or is not collecting any amount from a debtor. The FDCPA contained a ban on debt collection practices like requiring the debtor to disclose his financial information, requiring the debtor to provide personal records and files and requiring the debtor to submit application for court authorization to send a debt recovery letter.
The Fair Debt Collection Practices Act, on the other hand, outlines the manner of dealing with complaints received by a debt collector and the amount of fees that may be charged for dealing with complaints. The TILA provides regulations for how debt collectors can engage in debt collection activities and the procedures to be followed. A number of states also have their own laws on debt collection and some impose additional restrictions over the rights of the consumer. These include a capital payment to the attorney general or to a state board, requiring the agency to post records of its activities and providing notice of its proposed actions. Apart from these, most states have some provision for restricting the manner of dealing with a debt collector.