Agencies have rules they must follow when collecting debts

KS, UNITED STATES

01.23.2020

Story by Gail Parsons 

Fort Riley Public Affairs Office

Editor’s note: This is the third of an eight-part series addressing financial issues — how to avoid and repair credit and debt problems. Check out next week’s edition of the 1st Inf. Div. Post for information on how to dispute errors on a credit report.

If a person gets behind on a bill, the company to which the money is owed can turn the account over to a collection agency. It then becomes the responsibility of the collection agency to get the payment.
There are laws in place to govern the methods that collection agencies can use to contact and settle the debt.
Paul W. Depusoir, personal finance manager, Army Community Service, said one of the first things people should know is that a collection agency cannot talk to a third party about the debt.
“They can only talk to that individual,” he said. “The collection agency should not call the Soldier’s commander or squad leader … that would be against the consumer protection rights law.”
The Federal Trade Commission enforces the Fair Debt Collection Practices Act, which controls the actions of debt collectors.
According to the FTC, a debt collector can speak to a spouse or attorney about the debt. They can also contact others to find out information such as a person’s address, phone number or place of employment. They cannot, however, contact those people more than once.
“There is also strict adherence to the time of day they can make these calls,” Depusoir said. “They can’t call after (nine) at night, to talk to that person about their debt.”
The FTC says they also cannot call before 8 a.m. or at work if they are told the person cannot take calls there.
If a debt collector is calling frequently, a person can tell them verbally, but preferably in writing, that they are not to call again. Should the calls continue after the person has told the agency to stop — they have the grounds for filing a class-action lawsuit, Depusoir said.
“Once they make contact with you, you can ask them to stop calling you, because you have acknowledged that, yes, they have the right to collect the debt,” he said. “If they keep calling you, day after day, it would be considered harassment.”
According to the FTC, if a person sends a notice to the collection agency, they should retain a copy for their records and consider sending it certified mail with a return receipt. Once the collector has received the letter, they can contact the person again — to acknowledge receipt of the letter or to inform the person of pending legal action.
The Fair Debt Collection Practices Act also states the debt collectors:
• Must tell the person how much money is owed and the name of the creditor to which it is owed
• Must identify them on the phone
• Cannot threaten violence or harm or use obscene language
• Cannot lie about who they are or what actions are pending
• Cannot misrepresent the amount a person owes.

For more information visit www.ftc.gov/debt.

• Date Taken: 01.23.2020
• Date Posted: 01.23.2020 17:29
• Story ID: 360168
• Location: KS, US