Navigating the Complex World of Debt Recovery: Top 7 FAQs on Collection Agencies

Debt collectors- the phrase strikes a note of terror and creates a sense of discomfort for many! But why is that so? It’s because of the unnecessary hassles that the debtors have to face because of some unfair trade practices applied by these agencies. Not just that, but many questions arise in people’s minds that they don’t have answers to. This is also a reason behind the ignorance, which results in igniting the fear that people have about debt collection agencies. In this blog, we have gathered some of the most common FAQs on debt collection services to make you understand clearly about how they work, and what they can/ cannot do.

Quick Note : The Federal Debt Collection Practices Act (FDCPA) has laid out statutes prohibiting a commercial collection agency in Houston from using any unfair collection practices. So, if you face any such harassment, you may file complaints against the agency to the Consumer Financial Protection Bureau, the Federal Trade Commission, or the state attorney general’s office.

That being said, let’s move on and take a look at the 10 most Googled questions about debt collection agencies!

7 Most Searched Queries About Debt Collection Agencies

Can debt collectors contact my employer?

Well, technically they can’t! According to the statutes laid by the Fair Debt Collection Practices Act (FDCPA), a debt collection agency cannot contact your employer by any means unless you have permitted them to do so. They can only share information about your debts with your spouse.

And if any collection agency takes this step without your permission, you can easily hold them responsible for violating the regulations of FDCPA.

What kind of debts are covered by the FDCPA?

Not all types of debts come under the jurisdiction of the FDCPA. There are categories for that. The FDCPA holds you accountable for debts on the household, hospital bills, student loans, mortgages, credit card bills, car loans, etc. Certain debts like business-related debts do not come under the FDCPA.

How long can a debt collector come after me?

Although the statute of limitation for most debts depends on state-specific laws, business collection agency services in Houston can pursue a debt recovery for four years from your last payment date!

However, there are limitations! If the period for the statute (4 years) has expired, the collection agency cannot legally take action against you for the repayment. But, they can continue pursuing this through phone calls and letters.

Can they contact me at any time or place?

No, they can’t! The FDCPA has strict regulations on how and when commercial debt collection agencies in Houston are allowed to establish contacts with you. Following are some of the regulations that you need to know-

• They cannot contact you after business hours (8 A.M to 9 P.M) until you have permitted them to!

• They cannot contact you at your workplace unless you’ve instructed them to.

• They also cannot call you more than seven times in seven days. Moreover, they also cannot contact you within a week after discussing a particular debt over the call.

What if I don’t recognize the debt?

Supposedly, you’ve discussed with a debt collection and debt recovery service in Houston, like Nelson, Cooper & Ortiz, LLC and cannot recognize your debts! It might be because you’ve already paid them off, or it might not be the debts that you owe!

In such a situation, you need to send the debt collector a formal letter of dispute, saying that you don’t own the debt. You can also ask for verification of the debt to make sure that it’s not something that you owe them! Just remember to send the dispute letter within 30 days, or else the agency might think of the debt as being legitimate!

How will I know if I’m being scammed?

Scams are very common in the field of debt collection. So, you must be aware of it and choose not to fall for them to save yourself from financial loss.

Here are a few ways you can spot a scammer-

• They’ll put pressure on you to pay off your debts ASAP.

• They’ll try to prove a debt amount that you don’t recognize or owe.

• They’ll be reluctant to share their contact information.

• They’ll persuade you to pay through non-reversible payment options like prepaid card, or instant money transfer.

Can I come to a negotiation with the debt collection agency?

Yes, you certainly can! When you’re discussing your debt with commercial collection agencies for small businesses in Houston, openly talk to them about your current financial situation.

You might be surprised to know, you have more room for negotiation with a debt collection agency, than you might have with the creditor itself! So, opt to talk about your situation freely, and see what options they present you with.

To Conclude

When it comes to debt collection agencies, people often have queries that go unheard and unanswered. If you’re one of them, make sure to give this blog a read to know about the most-searched queries on Debt Collection Agencies, and have a thorough knowledge of their working principle.