Debts are never good for a healthy business, being a businessman debt collection is not an easy task for you. There are customers who don’t pay the debt back even after the deadlines. You can’t spend your time chasing such consumers. So hiring a debt collection agency is a wise idea. But many businessmen have a fear of hiring the agency as they have a bad reputation of being rude, scary and extremely unpleasant. To avoid all these curbs and misbehaving, many acts have been set up. An experienced or well-known debt company knows all the rights and restrictions they have while collecting a debt. So, it would be a wise decision if you hire an experienced debt collection agency in Los Angeles. Here are 5 things that a debt collector is forbidden to do and it’s illegal if the company still practices it.
Threaten the customer
Debt collection agencies can never threaten customers or get them arrested if they owe a debt to a debt collector company. However, if they fail to pay the debt after all the deadlines, a debt collection agency can sue the customer to the court. The customer loses the case by default and the court orders them to pay. In case if they defy that order, the collector can ask for an arrest warrant against the customer and get them arrested.
Harass the customer
Debt collection agencies can never harass any customer, it can be anything either by repeated calls, publishing information about customers, threats of violence, violence or using abusive language. All of these are illegal as per the debt collection practice act.
Publicizing the customer's debt
Going to the customer's workplace demanding payment. It's illegal for a debt collector to go to a customer's workplace demanding payments. A debt collector can’t publicize their debts and can’t directly go to them at their workplace without their consent to collect the debt. Although they can call them at their workplace, they can’t reveal to their co-workers that they are debt collectors.
Pursuing the wrong customer
Debt collectors can never pursue a customer for the debt that they don’t even owe. It often happens due to incomplete or wrong information. A debt collector should be very particular about the documentation and information, this usually happens when a company sells its debt to a collection agency and another collection agency buys it from them. A mistake can occur somewhere along the way and the agency starts contacting the wrong person or the person who has already paid the debt. So, a debt collector company should be very particular about the documentation.
Call you whenever they want
A debt collection company can never contact the customer whenever they feel appropriate. The debt collection lawsuit has set up a standard time of call, according to which a collector can never call the debtor after 9 pm and before 8 am. It’s illegal to call the customer outside the walls of this time.
Outsourcing a debt collection agency makes your work easy, but if you hire a company not following the law will bring you into serious trouble. Always ensure the background of the collection agency. If you notice any of these practices have been followed up by your debt collector, warn them for not doing so.
Threaten the customer
Debt collection agencies can never threaten customers or get them arrested if they owe a debt to a debt collector company. However, if they fail to pay the debt after all the deadlines, a debt collection agency can sue the customer to the court. The customer loses the case by default and the court orders them to pay. In case if they defy that order, the collector can ask for an arrest warrant against the customer and get them arrested.
Harass the customer
Debt collection agencies can never harass any customer, it can be anything either by repeated calls, publishing information about customers, threats of violence, violence or using abusive language. All of these are illegal as per the debt collection practice act.
Publicizing the customer's debt
Going to the customer's workplace demanding payment. It's illegal for a debt collector to go to a customer's workplace demanding payments. A debt collector can’t publicize their debts and can’t directly go to them at their workplace without their consent to collect the debt. Although they can call them at their workplace, they can’t reveal to their co-workers that they are debt collectors.
Pursuing the wrong customer
Debt collectors can never pursue a customer for the debt that they don’t even owe. It often happens due to incomplete or wrong information. A debt collector should be very particular about the documentation and information, this usually happens when a company sells its debt to a collection agency and another collection agency buys it from them. A mistake can occur somewhere along the way and the agency starts contacting the wrong person or the person who has already paid the debt. So, a debt collector company should be very particular about the documentation.
Call you whenever they want
A debt collection company can never contact the customer whenever they feel appropriate. The debt collection lawsuit has set up a standard time of call, according to which a collector can never call the debtor after 9 pm and before 8 am. It’s illegal to call the customer outside the walls of this time.
Outsourcing a debt collection agency makes your work easy, but if you hire a company not following the law will bring you into serious trouble. Always ensure the background of the collection agency. If you notice any of these practices have been followed up by your debt collector, warn them for not doing so.
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