Debt collection

Fair debt collection: Debt collectors are expected to implement fair debt collection practices and avoid harassing or abusing their clients. Fair debt collection practices must include:
- Collection of the specified amount in the agreement, unless the state law permits the collection of any additional charges.
- Avoiding unfair means for debt collection.
- Contacting the clients at a convenient place and time.
- Making sure that the name or reputation of the client is not affected while gathering information from a third party.
- Taking legal action only if it is absolutely essential.
- Making use of fair practices debt collection software to ensure easy and timely collection of debt.
- You must know how the debt collection process works and resist in case any incorrect information is documented.
- You should be aware of your right to privacy and make necessary enquiries.
- Maintain a file and include copies of the abusive messages recorded, copies of all correspondence with the collector, name of the collection agency employees you interact with and the documents.
- Seek legal help in the case of use of unfair practices.
- You should not ignore the calls made, personally or via the telephone, by a collector.
- Debt collectors must abstain from any form of harassment or abuse while dealing with the debtor or any concerned person. The use of obscene language and criminal means will result in the violation of the fair debt collection act.
- Debtors can take action against the debt collectors if they produce a false representation of the legal status of the debt or mislead them by imposing legal action.
- Debt collectors cannot collect an amount or fee that is not expressed in the agreement. If a client thinks that the amount is not valid then he can write a letter to the collector, asking for documented proof or simply refuse to pay until the collector provides him with a verification of the actual amount.
- Clients cannot be contacted through postcards. They cannot be threatened with legal action, unless the debt collection agency intends to take the matter to court.
- If an attempt is made by the debt collector to involve someone else in the debt collection procedure, without the knowledge of the client, then the collector can be sued for the act.
