Credit Collection Agencies

Credit collection agencies are used for collecting any debt owed that has not been paid. A credit collection agency usually specializes in securing delinquent debts and is licensed and must adhere to certain regulations in their efforts. Many financial service companies work on a contingency fee basis. When monies are secured by the service from the borrower then they take a percentage for payment. Companies that specialize in securing payment for lenders must send the borrower a written notice within five days of initial contact. This notice should include amount owed, name of lender, and the action to take if the money is not owed.

Actions of credit collection agencies are covered under the Fair Debt Practices Act. They cannot use threats of violence or harm, obscene or profane language or repeated telephone calls when seeking monies. A credit collection agency can contact the debtor by mail, telephone, telegram or by fax. Calls are restricted before 8 a.m. in the morning and after 9 p.m. in the evening. They cannot call the debtor at their place of employment without approval. They can't contact friends and family in an effort to collect the debt. They are allowed to contact other people but only to find out how to contact the borrower, specifically for address and place of employment.

After making initial contact with the borrower a credit collection agency must send the consumer a written notice with the amount owed and to whom it is owed. Credit collection agencies usually start by just asking for the balance owed. After attempts at securing monies an agency may use legal means to try and secure the debt. Even though credit collection agencies are regulated, there are those who go overboard in their efforts. When suffering from harassment write a letter to the service company and ask them to stop. "Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law" (Romans 13:8).

Once a request is made for contact to stop a credit collection agency should stop pursuing the consumer. Complaints on agencies should be made to the Office of the State Attorney General. It is important to pay debts owed so that this type of situation doesn't have to happen. If however, one is pursued for a financial agreement through a service company try to set up a payment plan and be faithful to pay it as agreed.

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