Debt Collection Practices That Are Unacceptable
The government is stepping up as debt collection scams rise. In recent news, Buffalo New York has been home to a number of unlawful debt collection practices, and authorities have arrested at least twelve people. Although the vast majority of collection agencies are legitimate and good for the economy, there has been a rising amount of deceptive and illegal practices.
In Buffalo, people have been caught calling up debtors and posing as law enforcement. They have threatened to send people that owe money in jail, or even take child custody away from them. And it doesn’t stop there.
A recent civil case imposed a $675,000 penalty ever imposed on a debt collection business, for illegal and deceptive practices. This includes badgering and lying to consumers, disclosing their debt to third parties, and cashing in on post dated checks early. These tactics were accompanied by deceptive claims from agents saying they were lawyers or other figures of authority.
In addition to refusing to disclose the address or phone number of the “company” these agents even went as far as to call people who did not owe any money at all and attempted to collect from them. Despite claims that it was individual workers acting illegally, the Federal Trade Commission went after the business owners and won a case that served the biggest penalty ever for debt collection companies.
To avoid being a victim of fraudulent collection agencies, it is crucial to know your rights. A collection agency can not seize a debtor’s assets, bank accounts, or paychecks. They can never get a debtor fired from their job, and cannot make any kind of public announcements concerning the debt, and they can definitely never threaten or engage in violence.
For more information, refer to the Fair Debt Collection Practices Act, which outlines the laws and regulations of debt collection.
Mallory McGuinness-Hickey works for Rapid Recovery Solution , a debt collection companyand writes free lance articles on business and money. You are welcome to reprint this article – but get your own unique content version here.
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