Industry Tips
Debt Collection
This report is general in nature and is not intended as a reliability report on any company, service or product.
The Pennsylvania Fair Credit Extension Uniformity Act and federal Fair Debt Collection Practices Act regulate the debt collection activities of debt collectors and creditors. It requires that debt collectors treat you fairly and prohibits certain methods of debt collection.
The laws apply only to bill collectors who work for collection agencies, not the original creditors. Of course, the laws do not erase any legitimate debt you owe.
Collection agencies are not allowed to:
Call your work place if they know your employer disapproves;
Call your home before 8 a.m. or after 9 p.m.;
Address you in an abusive manner;
Communicate with third parties for debt collection.
They may only make contact for the purpose of acquiring location information about you and may not reveal that you owe any debt;
Harass you;
Make false or misleading statements;
Add unauthorized charges.
The Fair Debt Collection Practices Act also states that you can demand that the collection agency stop contacting you, except to tell you that collection efforts have ended or that the creditor or collection agency will sue you.
A collector may not contact you if, within 30 days after you receive a written notice, you send the collection agency a letter stating you do not owe money.
However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.
If you feel that collection agencies are violating the laws, tell the collection agency to stop harassing you. If it continues, ask for its name and address and report it to the Federal Trade Commission (www.ftc.gov) 800-382-4357 or your state’s Attorney General office.
For more advice you can trust from your local BBB on avoiding scams and fraud, go to www.bbb.org.
Updated 3/10