Professional collections techniques must be in accordance with industry standards that prohibit unethical and deceptive methods. Federal law is very clear about what a collector can and can not do. Collectors ought to be working with consumers to make a reasonable payment plan. Collectors violate their industry's standards when they attempt to threaten and punish debtors.
Consumers always must be treated with courtesy and respect. Collectors should attempt to help the consumer to find a way to pay their debts. Lying and deception should not be used in any way. Intimidation, threats and insults directed towards the debtor violates industry standards and might also violate federal laws. Possible solutions may include having the person make monthly payments or see if a family member might be able to help. You can not get blood from a turnip so threatening or harassing the debtor is not going to help solve the problem.
When the collector receives a written request from a debtor to verify the debt, then all efforts to collect from the person must be suspended. The debtor must be given verification of the debt. If verification is not provided, the person's credit reports must have the item either removed or flagged as disputed. Both the creditor and the debtor must be notified in writing that the debt was unable to be verified.
Time-Barred debts must be recognized. After a certain period of time a debt can no longer be collected. This time period is based on the statute of limitations, which is different from state to state. A debtor can not be sued for an obligation that is time-barred.
One of the biggest problem in the industry currently is identity theft. The popularity of the internet has made this crime easier to commit. Part of the process of determining if an obligation is valid is finding out if there has been identity fraud. Everyone should review a copy of their credit reports from time to time to make sure their identity is safe.
The telephone is the primary method that a collector uses to communicate with a consumer. Some unethical collectors have used the telephone as a tool to harass and annoy debtors. Collectors are not permitted to make frequent phone calls in a continuous manner. Debtors can only be contacted via phone between eight in the morning and nine in the evening. Telling a person that they will be sued if they do not pay by the end of the day, or that they have violated tax laws and will go to prison, can be a possible violation of federal law.
In the old days, unethical collectors would call someone's boss, neighbor, family member, or friend in an attempt to locate them or to embarrass them. Contacting anyone other than the person holding the debt is not allowed. This is very unethical behavior and could possibly be against the law.
The standards of professional collections ensure that consumers are only being contacted to pay legitimate obligations. The business community will have better results when consumers are treated with dignity. Abusive and harassing language that threaten the consumer hurts the industry. When done professionally, the collector will work with the consumer to find ways that they can pay their obligations. This is better for both consumers and business.
Consumers always must be treated with courtesy and respect. Collectors should attempt to help the consumer to find a way to pay their debts. Lying and deception should not be used in any way. Intimidation, threats and insults directed towards the debtor violates industry standards and might also violate federal laws. Possible solutions may include having the person make monthly payments or see if a family member might be able to help. You can not get blood from a turnip so threatening or harassing the debtor is not going to help solve the problem.
When the collector receives a written request from a debtor to verify the debt, then all efforts to collect from the person must be suspended. The debtor must be given verification of the debt. If verification is not provided, the person's credit reports must have the item either removed or flagged as disputed. Both the creditor and the debtor must be notified in writing that the debt was unable to be verified.
Time-Barred debts must be recognized. After a certain period of time a debt can no longer be collected. This time period is based on the statute of limitations, which is different from state to state. A debtor can not be sued for an obligation that is time-barred.
One of the biggest problem in the industry currently is identity theft. The popularity of the internet has made this crime easier to commit. Part of the process of determining if an obligation is valid is finding out if there has been identity fraud. Everyone should review a copy of their credit reports from time to time to make sure their identity is safe.
The telephone is the primary method that a collector uses to communicate with a consumer. Some unethical collectors have used the telephone as a tool to harass and annoy debtors. Collectors are not permitted to make frequent phone calls in a continuous manner. Debtors can only be contacted via phone between eight in the morning and nine in the evening. Telling a person that they will be sued if they do not pay by the end of the day, or that they have violated tax laws and will go to prison, can be a possible violation of federal law.
In the old days, unethical collectors would call someone's boss, neighbor, family member, or friend in an attempt to locate them or to embarrass them. Contacting anyone other than the person holding the debt is not allowed. This is very unethical behavior and could possibly be against the law.
The standards of professional collections ensure that consumers are only being contacted to pay legitimate obligations. The business community will have better results when consumers are treated with dignity. Abusive and harassing language that threaten the consumer hurts the industry. When done professionally, the collector will work with the consumer to find ways that they can pay their obligations. This is better for both consumers and business.
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